French, German & Luxembourgish
Hire employees in Luxembourg. No entity needed.
Usually, to hire in Luxembourg, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Luxembourg also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Luxembourg quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Luxembourg
built right in
Deel allows you to provide localized benefits for employees in Luxembourg within minutes. All in one manageable online dashboard.
- Pension Fund
- Private Healthcare - Unisure (optional)
- Private Healthcare - Allianz (optional)
Our quickstart guide to hiring in Luxembourg
Navigate the tabs below to learn everything you need to know about hiring an employee in Luxembourg
Minimum Wage Requirements
Individual Income Tax
Overtime Pay & Maximum Hours
Employees are entitled to 20 weeks of paid leave broken into two parts, antenatal and postnatal. 8 weeks antenatal leave must be taken before the expected date of delivery
The employee will receive 100% of their highest salary during the last 3 months before their leave, and Social Security will be responsible for this pay.
Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
There is no at-will termination in Luxembourg for employers and termination must be done for just cause.
Compliant terminations include:
- Voluntarily by the employee
- By mutual agreement
- Unilaterally by the employer based on:
- probation period
- objective grounds
- disciplinary dismissal
- performance due to unsuitability for the job
- By expiration of the contract
The minimum notice period is 30 days and will be increased according to the length of the employment and the type of termination.
Notice upon termination by the Employer:
- 60 days if the length of service is less than 5 years
- 120 days if the length of service is more than 5 years but less than 10 years
- 180 days if the length of service is more than 10 years
Notice upon resignation by the Employee:
- 30 days if the length of service is less than 5 years
- 60 days if the length of service is more than 5 years but less than 10 years
- 90 days if the length of service is more than 10 years
Severance for Employees
In Luxembourg, all employees who are terminated without appropriate termination notice or have been employed with the company longer than 5 years are entitled to severance pay. Severance pay is 30 days of salary per year of service up to 25 months base compensation.
- From years 5-10 of seniority, 4 months of salary.
- From years 10- 15 of seniority, 2 months of salary.
- From years 15-20 of seniority, 3 months of salary.
- From years 20-25 of seniority, 6 months of salary.
- From years 25-30 of seniority, 9 months of salary.
- From years 30+ of seniority, 12 months of salary.
Paid Time Off
Luxembourg celebrates 11 national holidays
- National public holidays include:
- New Year's Day
- Easter Monday
- Labour Day
- Europe Day
- Ascension Day
- Whit Monday
- National Day
- Assumption Day
- All Saints' Day
- Christmas Day
- 2nd Day of Christmas
Due to lengthy compliance steps, the onboarding timeline can vary from 2 weeks to 1 month. Documents must be completed 1 day before the start date.
In Luxembourg, new hires must be reported to the national employment agency, ADEM (Agence pour le développement de l'emploi). During the onboarding process, you will receive an additional form to complete, which Deel will use to notify the ADEM. Once the ADEM has confirmed the registration, Deel will be able to send the employment agreement to your employee
Employment Contract Details
Contracts can be in English. They must be in writing and signed by both parties.
A contract must include:
- start date
- length of the employment
- job description
- termination conditions
- monthly salary
- address of work
- working hours
Hiring in Luxembourg, hassle-free
With Deel, your business can easily hire employees in Luxembourg. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
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