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Luxembourg · EOR
Employ staff in Luxembourg without a Luxembourg entity. We handle employment contracts, payroll, CCSS social contributions and compliance with Luxembourg's Labour Code — in one of the EU's most-used post-Brexit holding and subsidiary locations.
A small jurisdiction with outsized cross-border complexity: three official languages and a workforce that mostly lives in three other countries.
Luxembourg is the EU's most-used jurisdiction for financial services, investment funds and post-Brexit European headquarters.
Many UK and US companies establish a Luxembourg subsidiary for EU market access — and use EOR to employ the first people there while the entity structure is being formalised, or indefinitely for small teams.
Contracts may be in French, German or Luxembourgish — all are official languages. English-language contracts are accepted in practice, but the official language version prevails in a dispute.
Mandatory written terms must be provided within 2 months of starting.
Indefinite contracts (CDI) are the standard. Fixed-term contracts (CDD) are limited and subject to strict rules on duration and renewal.
26 days statutory annual leave — one of the most generous minimums in the EU.
Maximum 8 hours per day and 40 hours per week; overtime carries a 40% premium.
Sick pay: employer covers the first month at 100%, then the CNS health fund from month two.
Employer contributions are comparatively light. The salary floor is not.
| Employment obligation | Details |
|---|---|
| Employer CCSS contributions | ~12–15% of gross salary — lower than most neighbouring EU states |
| Minimum wage (SSM) | €2,771.33/month unqualified; ~€3,325.60/month qualified (+20%) — indexed to inflation and revised in-year |
| Annual leave | 26 days statutory minimum — one of the most generous in the EU |
| 13th month | Common market practice; not universally statutory — depends on the sector agreement |
| Working hours | Maximum 8 hrs/day, 40 hrs/week; overtime at a 40% premium |
| Sick leave | Employer pays the first month at 100%; CNS (health fund) from month 2 |
| Income tax | Progressive; residents taxed on worldwide income. Effective rates are competitive relative to salary levels |
| Notice periods (CDI) | 2 months (under 5 years) to 6 months (10+ years) — verify which side each figure applies to before quoting it |
Rates verified for the 2026 tax year. Figures are indicative — your quote is calculated on the actual salary and contract type.
Luxembourg has a large cross-border workforce commuting daily from France, Belgium and Germany.
Cross-border workers are employed under Luxembourg employment law but may be taxed in their country of residence under bilateral tax treaties. That splits the employment and tax positions across two jurisdictions — which is exactly the payroll complexity a Luxembourg EOR handles as standard.
Notice is tenure-banded and asymmetric between the parties, so the direction of the exit changes the cost.
Tenure-banded notice periods apply, running from 2 months at short service up to 6 months at 10+ years.
Immediate dismissal without notice is possible for serious misconduct, but the bar is high and the reasoning must be stated in writing.
A negotiated departure. Common where the relationship has ended but neither party wants a contested notice position.
Employer-initiated and employee-initiated notice are not the same length in Luxembourg. The supplied figures should be confirmed against the current Labour Code before they appear in an offer or a client quote — an inverted table here understates your exit cost by a factor of two.
Charged on top of full employment costs — gross salary and CCSS contributions.
Cross-border worker payroll complexity handled. Multilingual contract support included. Employer contributions here are lower than France, Belgium or Italy, but minimum wage and skilled-salary expectations are among the highest in the EU.
Yes. Under an EOR arrangement Dhi ADT holds the Luxembourg employment contract and the CCSS registration. You direct the employee's work.
The most common pattern we handle is a UK or US company employing its first one to three EU staff through EOR while a Luxembourg SARL is being formed, which typically takes 4–8 weeks.
Budget roughly 1.15–1.20× gross salary before the EOR fee. Employer CCSS contributions run at about 12–15%, which is materially lower than France, Belgium or Italy.
The catch is the floor rather than the multiplier: the statutory minimum wage is €2,771.33/month unqualified and around €3,325.60/month qualified, and skilled-role expectations sit well above that.
French, German and Luxembourgish are all official languages, and a contract in any of them is valid. English-language contracts are accepted in practice, but the official language version prevails in a dispute.
Mandatory written terms must be provided within two months of the start date.
Around 45% of Luxembourg's workforce commutes from France, Belgium or Germany. They are employed under Luxembourg employment law but may be taxed where they live, under the applicable bilateral treaty.
That means the employment and tax positions sit in different countries, and remote-working day counts can move the tax position. It is handled as standard under EOR rather than as an exception.
26 days statutory minimum, one of the most generous in the EU. Sector agreements may add to it, and a 13th month is common market practice without being universally statutory.
Notice is banded by length of service, running from two months at short service to six months at 10+ years, and the employer-initiated and employee-initiated periods are not the same length.
Because the direction of the exit changes the number, we confirm the applicable period against the current Labour Code before it goes into a contract or a cost model.
Rates, thresholds and collective-agreement provisions are subject to annual revision and sector variation. This page is general information, not legal or tax advice. Figures are indicative — your quote is calculated on the actual salary and contract type.
15 minutes. We'll confirm your employment structure, cross-border considerations and cost — before you commit.
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