Luxembourg Workforce Solutions and EOR Services

Hire and Manage your Workforce in Luxembourg

In 2021, Luxembourg economy seen growing by 6%

According to the OECD, the Luxembourg economy is projected to surpass the 4.8% growth mark in 2021, with private consumption and investment on a rapid rise due to an alleviation of austerity measures that were put into place during 2020’s recession. The unemployment rate will peak at 6.6%, as short-time work schemes are terminated; but by 2022 it should decline back down below 7%. The labor market in Luxembourg will probably be a drag on growth for many years, and the country’s economy is more exposed to pandemic risk than most. One upside scenario would involve an earlier completion of their vaccination campaign that could help prevent private consumption from collapsing.  In 2019, Luxembourg ranked #72 in the World Bank’s Ease of Doing Business index (Sources: OECD and Luxembourg Times).

XML employs workers for you in Luxembourg
Quick, Simple, Compliant.

A trusted professional employment organization with in-depth knowledge of the market in Luxembourg,  XML International provides you with end-to-end personalised solutions to recruit and manage remote team members for your activities in Luxembourg City or any other city in Luxembourg, regardless of the size of your organisation or your industry.

Employees will be employed pursuant to local labour laws, and all required social security and taxation will be paid to the local Authorities.

Luxembourg Country Information

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Luxembourg City

Local Currency

Euro EUR

Official Languages

Luxembourgish, French, German 

Luxembourg Minimum wage

Minimum wage in Luxembourg is 15.27 EUR per hours and 2.642 EUR per month

Luxembourg Normal working hours

Statuatory working hours in Luxembourg are 8 hours per day and 40 hours per week.

Luxembourg Annual leave

Workers are entitled to 26 days of paid leave per year. . Each employee is entitled to 2.167 days off for each month worked. For part-time employees, the calculation will be done on a pro rata basis. In principle, the employee must have been employed for a minimum of three months before taking any holidays.
In addition to the legal annual leave period, days off will be granted for special events (marriage, death of a close relative, and so on).

Luxembourg Sick leave

The worker must inform the employer on the first day of absence about the sickness, and submit a medical certificate at the latest on the third day. 
The employer will pay the full salary (all benefits included) to the employee from the date on which the employer is informed about the sickness until the end of the month during which the 77th day of sickness leave occurs (whether consecutive or not), over a reference period of 18 consecutive months.  80% of the overall remuneration paid by the employer during the sickness period will be reimbursed by the employers’ mutual scheme insurance (mutualité des employeurs).

Luxembourg Maternity leave

Female workers are entitled to 20 weeks’ maternity leave as follows:

  • 8 weeks before the expected date of delivery.
  • 12 weeks after the date of delivery
If the woman has been registered with the sickness and maternity insurance for at least six months during the 12 months prior to her maternity leave, financial maternity benefit is paid by the social security system at the same rate as the employee’s normal salary (limited to five times the minimum social wage).

Luxembourg Paternity leave

Fathers are entitled to 10 days of paternity leave.

Luxembourg Notice Period

  • For notice period in case of dismissal, the duration of such notice depends on the employee’s seniority:
  • Less than five years’ service: two months’ notice.
  • Between five and up to ten years’ service: four months’ notice.
  • Ten years’ service or more: six months’ notice.

For notice period in case of resignation, the notice period also depends on the employee’s seniority:

  • Less than five years’ service: one month’s notice.
  • Between five and up to ten years’ service: two months’ notice.
  • Ten years’ service or more: three months’ notice.
The notice period can only start on the first or the 15th day of each month, depending on the notification date of the dismissal/resignation letter.

Luxembourg Probation period

Probation periods generally last between two weeks to six months. 

Luxembourg VAT

The standard VAT rate is 17%.

Sources: Deloitte, Guichet

Unlock your business potential in Luxembourg with XML International.

If you want to benefit from XML employment expertise in Luxembourg, we invite you to fill the form below and we’ll get back to you shortly.

XML employs workers for you in Luxembourg

Quick, Simple, Compliant

XML International, one of the best workforce solutions and employer of record services providers for Luxembourg, supports the set-up and the management of your international workforce for all your activities in Luxembourg. Our invaluable input consists of streamlining and handling for you the complete employment lifecycle of your teams in Luxembourg. We give you all the keys to handle you staff in Luxembourg City or any city in Luxembourg. XML’s knowledge of  labour Luxembourg laws, tax and social security system, and employment regulations allows you to tackle the challenges of local compliance in Luxembourg, navigate all the local complexities and avoid pitfalls.

The Best Employment Outsourcing Solutions for Luxembourg

Smart Management of your Employees in Luxembourg

Among our top priorities, compliance with Italian employment regulations and labour laws is number one. In addition to talent acquisition, recruitment services, and workforce management, we also ensure that our clients’ workforce management in Luxembourg is aligned with Luxembourg tax and social security rules and the latest immigration processes, including visas and work permits.

Here is the list of our core services supporting your activities in Luxembourg.

• GEO Services for Luxembourg (PEO and EOR)

• Contingent Workforce Services for Luxembourg

• Managed Solutions Programs for Luxembourg

• RPO & Staff Mobilization for Luxembourg

Do Business in Luxembourg, with or without creating your local legal entity

Take advantage of the targeted outsourcing solutions proposed by XML International for your expansion in Luxembourg or for your employees already based there. We offer a comprehensive series of bespoke and scalable outsourcing solutions specially designed for the Luxembourg market.

They range from professional employer organization employment (PEO), employer of record, and contingent workforce employment services, to help you grow effortlessly and successfully in Italy without any complications. We can also help you source, recruit, and onboard new team members locally, even if you don’t have an office in Luxembourg.

XML provides you with everything you need to start doing business in Luxembourg or to optimize your business if you are already operating there, leading to significant bottom-line savings and getting your business activities up and running in just days. Get in touch with the XML team to learn how we can boost your activities in Luxembourg in a cost-effective way. 

Get started now and make the most of business in Luxembourg today!

Local. Globally.

XML has expertise and resources to meet your organization’s workforce needs wherever, and in whichever field these might be.