Hire 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.

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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.

Local lawyers ensure you stay compliant

We partner with labor law experts in 150 countries. Easily pick from a library of localized contracts to legally onboard your international team in minutes.

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
Health Insurance
Worker Compensation Insurance
Social Security

Quick Overview

Currency: Euro (EUR)

Capital: Luxembourg-City

Official language: Luxembourgish, German and French

Payroll Cycle: Monthly

Statutory Holidays

Paid Time Off

In Luxembourg, employees are entitled to 25 days of paid holiday a year.

Public Holidays

  • New Year’s Day
  • Easter Monday
  • Labor Day
  • Ascension Day
  • Whit-Monday
  • Luxembourg National Holiday
  • Assumption Day
  • All Saint’s Day
  • Christmas
  • St. Stephen’s Day

General Taxation

Individual Income Tax

The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges up to 42%

Employer Tax

Approximately, 13% of employee salary

Additional information

Employment Contract Details

There are no specific rules governing the language used to write employment contracts in Luxembourg. Contracts must always be in writing and specify the type of employment agreed, trial period and restrictive covenants.

Probation Period

Probation can be set for a minimum of 2 weeks up to 12 months and must be included on the employment contract to be enforced.

Minimum Wage Requirements

The Minimum Wage is EUR 2,142 per month.

Bonus and Expense Payments

Bonuses may be paid and are treated as part of salary. Terms and conditions are determined by the parties and must be included in the employment agreement to be enforced.

Parental Leave

Parents can take up 6 months’ full time leave or up to 12 months’ part time leave. During parental leave, the parent receives an allowance that is taxable and is paid to the employee by the state.

  • Maternity leave: it can start 8 weeks before childbirth and extends until 8 weeks after the baby is born. It might be extended for another 4 weeks. During maternity leave, employees receive an allowance equal to their salary capped at 5 times the minimum wage from the National Health Fund.
  • Paternity Leave: employees can take 2 days’ paternity leave when the child is born, they continue to receive full salary from the employer.

Termination requirements for employees in

Luxembourg does not allow at-will termination of employment for employers; contracts may be terminated by mutual agreement or unilaterally for due cause (serious cause, unfit for the role, extinction of the role).

Termination pay includes basic and variable salary until notice end date, any non taken holidays, benefits in kind and allowances due to the employee until the termination date. Employees with at least 5 years’ of employment are entitled to severance pay equal to 1 month’s salary up to 12 months’ salary for employees employed for at least 30 years.

Notice Period

In Luxembourg, the notice period is based on the length of the labor relationship:

  • Up to 5 years of employment - 2 months’ notice
  • 10+ years of employment can reach - 6 months’ notice

The employer can only terminate by giving notice. The notice must be justified on objective grounds as specified by the local labour legislation. Indemnity in lieu of notice is not permitted by law.

Note: In Luxembourg, we work with a top-tier EOR partner to ensure you have the best employee hiring and onboarding experience. They’re well equipped to handle all things employment for Luxembourg.

We have a 4.7 out of 5 rating on Trustpilot

We're trusted by over 1,400 businesses all over the world.
‍Read our reviews on Trustpilot.com.

Nov 20, 2020
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Reviewed
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Deel is the best!!

"

Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!

..."

Manuela Echeverry
Dec 3, 2020
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Reviewed
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A contracting life-changer!

"

This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go.

..."

Kix Panganiban
Dec 15, 2020
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Reviewed
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Terrific service

"

Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money

..."

Nunzio Martinello
Nov 16, 2020
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Reviewed
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Deel is a game-changer for distributed teams

"

Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!

..."

Jeremie Habib
Jan 29, 2021
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Reviewed
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Great app with great customer service

"

Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!

..."

Felipe Marote
Nov 20, 2020
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Reviewed
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Great service offering!!

"

The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend.

..."

Michael US
Nov 20, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Deel is the best!!

"

Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!

..."

Manuela Echeverry
Dec 3, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
A contracting life-changer!

"

This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go.

..."

Kix Panganiban
Oct 28, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Great service offering!!

"

The Deel platform has been super effective for my team and I and has enabled us to bring on workers globally. The platform allows us to onboard individuals seamlessly and with no issues at all. Highly recommend.

..."

Michael US
Dec 15, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Terrific service

"

Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money

..."

Nunzio Martinello
Nov 16, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Deel is a game-changer for distributed teams

"

Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!

..."

Jeremie Habib
Jan 29, 2021
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Great app with great customer service

"

Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!

..."

Felipe Marote

We have a 4.7 out of 5 rating on Trustpilot

We're trusted by over 1,800 businesses all over the galaxy.
‍Read our reviews on Trustpilot.com.

Nov 16, 2020
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Reviewed
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Finally, the arrival of a stellar product.

"

Learning to speak to communicate with extraterrestrials was insanely hard. Hiring them with Deel? Now that was simple.

..."

Amy Adams, Arrival
Nov 16, 2020
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Reviewed
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Me, myself, and Deel!

"

Working on Mars alone for so long got old. Deel made hiring all-star farmers a dream for me.

..."

Matt Damon, The Martian
Nov 16, 2020
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Reviewed
This is some text inside of a div block.
Stop floating through hiring

"

I spent a lot of time floating around trying to find the best hiring solution. With Deel, I can stay grounded with an out-of-this-world team.

..."

Sandra Bullock, Gravity
Nov 16, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Finally, the arrival of a stellar product.

"

Learning to speak to communicate with extraterrestrials was insanely hard. Hiring them with Deel? Now that was simple.

"

Amy Adams, Arrival
Dec 3, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Me, myself, and Deel!

"

Working on Mars alone for so long got old. Deel made hiring all-star farmers a dream for me.

"

Matt Damon, The Martian
Oct 28, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Stop floating through hiring

"

I spent a lot of time floating around trying to find the best hiring solution. With Deel, I can stay grounded with an out-of-this-world team.

"

Sandra Bullock, Gravity
Dec 15, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Terrific service

"

Great service, amazing customer care, terrific platform, both for the company and for the contractors/employees. Saving everyone's time and money

..."

Nunzio Martinello
Nov 16, 2020
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Deel is a game-changer for distributed teams

"

Deel has been instrumental in helping us both open and operate our EU operations. It's super simple to set up and implement and the support team has been world-class. I can't recommend them enough!

..."

Jeremie Habib
Jan 29, 2021
This is some text inside of a div block.
Reviewed
This is some text inside of a div block.
Great app with great customer service

"

Great app with great customer service, with great attention to details and legal requirements. Looking forward to keep using it!

..."

Felipe Marote

Chat to our team about compliantly hiring on Mars

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