Hire and pay employees 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. The average onboarding time frame in the Luxembourg is 4 days with Deel.
Onboard, pay and manage employees in Luxembourg with Deel
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.
Now you can hire employees in Luxembourg quickly, easily, and compliantly. Automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
Currency Euro
Capital Luxembourg
Official language French, German & Luxembourgish
Payroll cycle Monthly
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 in a single HR platform.
- Caisse de retraite
- Sécurité sociale
- Private Healthcare - Unisure (optional)
- Couverture santé privée - Allianz (facultatif)
- Assurance vie mondiale - Allianz
Our quickstart guide to hiring in Luxembourg
Navigate the tabs below to learn everything you need to know about hiring an employee in Luxembourg
Exigences relatives au salaire minimum
The minimum wage varies depending on the employee's skills. In 2025, the minimum wage for unskilled workers is €2,637.79 per month and €3,165.35 per month for skilled workers.
Impôt sur le revenu des particuliers
Income Tax in Luxembourg is complex. The individual income tax ranges from 8% to 42%. Income tax is calculated according to progressive rates, marital state, and the employee’s number of children.
Coût de la paie
The employer cost is generally estimated at 11.94% of the employee's salary.
- Public Pension Fund - 8%
- Sickness and Maternity Benefits Funds (Caisse de maladie soins) - 0.25%
- Work Accident Insurance - 0.75%
- Public Health Insurance (Caisse de maladie soins) - 2.8%
- Onboarding Medical Check and Employee Professional Fitness Care - 0.14%
- Telephone and Internet Allowance - EUR 15
Ces coûts sont des estimations et ne sont indiqués qu’à titre d’information. Pour comprendre le mode de calcul des coûts et frais inhérents aux termes d’un contrat de travail établi dans ce pays, n’hésitez pas à demander un devis à notre service commercial.
Rémunération des heures supplémentaires et nombre d’heures maximum
Overtime payment is mandatory for all employees except for Senior Managers. Hours of overtime are paid at 140% of the regular hourly rate. Overtime may be paid as leave-in-lieu of pay (1 hour overtime of overtime equals 1 hour and 30 minutes of time off).
For additional hours, employees are paid:
Overtime type
Payer
Standard overtime
140% of the regular hourly rate
Working on public holidays
200% of the regular hourly rate
Working on Sundays
170% of the regular hourly rate
Working at night (from 10 PM to 6 AM)
115% of the regular hourly rate
Hiring in Luxembourg, hassle-free
With Deel, your business can easily hire employees in Luxembourg with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Luxembourg and 150+ countries.
Management fee
À partir de
$599
/mois
Estimated Employer Cost
12 %
of employee salary