Employer of Record in Luxembourg (EOR Luxembourg)

Expert EOR services are priced in Luxembourg as a percentage of a coworker’s monthly salary. This cost covers all HR duties necessary to guarantee adherence to all regional employment laws.  

It is safe, legal, and effective to manage employer duties through an EOR in Luxembourg without the need for a specific organizational structure there. EOR services achieve this by retaining excellent HR support and engaging local legal experts. 

Your team members will be totally protected by the law, get accurate and timely monthly payments, and have access to all employee benefits in Luxembourg if you use an EOR service agreement.  

Independent contractors working inside a Luxembourg EOR framework may be qualified for some or all of the same benefits as regular employees while maintaining complete control over their work. This is the same as what contractors in Luxembourg would get if they were working with an umbrella company. 

By employing their extensive professional networks, in-depth understanding of local business resources and benchmarks, and a firm dedication to ethical hiring processes, our team of recruiting consultants can locate the best local talent in Luxembourg for your requirements.  

As a result, integrating these new recruits into our Luxembourg EOR system will be simpler and more efficient than when they were hired through more traditional hiring practices. 

Through INS Global, you receive comprehensive compliance-assured employment outsourcing assistance from a truly international EOR services provider. This follows all applicable national, state, and municipal laws meaning you have access to the whole country.  

It’s possible that specific PEO or EOR service providers in Luxembourg have stringent hiring standards or a cap on the number of workers you may hire at once. However, INS Global is aware that depending on your global company plan, you could need to scale up or down quickly. Working with us gives you the flexibility to hire as few or as many individuals as you need to reach your objectives. 

Payroll expenses, hiring fees, signing bonuses, and other direct and indirect costs like incentive schemes, handling the taxes of international workers, and social insurance should all be taken into consideration as part of the hiring cost in Luxembourg. 

By doing away with the requirement for a local site, using Luxembourg PEO services allows you to circumvent time-sensitive incorporation laws.  

Giving your employees a choice to work in a shared workspace or the freedom to do so whenever and wherever it’s most convenient is still a good idea, and INS Global can also provide advice on the best ways to offer this. 

Absolutely. We can handle the essential changes, such as visa and work permit procedures if Luxembourg citizens or foreigners are subject to various local employment rules, tax legislation, or employee perks.  

For companies of all sizes, from SMEs to multinational corporations, the best EOR and PEO solutions are available to enable the effective and secure employment of foreign or local workers. If more workers are needed, our services can readily scale up to meet that need, and they can even take the place of more complicated internal HR requirements.  

Businesses in a variety of industries that either don’t have their own structures in a target country (or desire to avoid cost-scaling issues while focusing on expansion) would benefit greatly from the legal expertise offered by PEO and EOR services.  

Two alternative third parties that can be used to directly or indirectly hire independent contractors are staffing companies and umbrella businesses.  

The majority of independent contractors in Luxembourg work for themselves or own their own small enterprises. According to Luxembourg law, labor agreements, not employment contracts, must be used when hiring contractors. 

Before the job begins, an independent contractor might be required to provide a CV, portfolio, verified references, and a signed NDA.

Employers in Luxembourg typically organize payroll monthly, with deductions for tax and social security contributions made at source.  

Monthly minimum wages in Luxembourg differ for skilled and unskilled labor, and both are amended frequently. The current minimum for skilled workers is EUR 3.009,88 per month, while unskilled workers must receive at least EUR 2.508,24. 

Citizens of most EU and EFTA states can live and work in Luxembourg without requiring additional paperwork. For citizens of other countries, the most common work visa type is the Salaried Worker Visa. These are available to those who already have a job in Luxembourg and require the employer to handle most of the process. They can take several weeks to arrange, and are available for 1 year at a time, with the option for 3 years’ renewal.  

Additionally, workers can apply for a Highly Qualified Worker Visa, also known as an EU Blue Card. These are valid for up to 4 years and allow the holder to live and work across the EU. However, the application requirements remain high.  

In Luxembourg, employers retain and manage taxes on behalf of their employees. They are also required to provide contributions to the employees‘ social security funds. These funds cover health insurance, pensions, and other forms of health benefits. The employer contribution amount is equivalent to 12.22-15.75% of the employee‘s salary.  

All employees in Luxembourg are eligible for the usual benefits of paid leave, health and medical insurance, a pension, and unemployment insurance. In addition, many employers in Luxembourg provide supplementary benefits, including travel allowances, meal vouchers, and additional paid leave.

Employers in Luxembourg can amend employment contracts with written notification of any changes being provided to the employee if the change will negatively impact the workers‘ conditions. Changes resulting in a positive change may be applied without notice. Some worker types are protected against any negative changes to their contracts without prior agreement.

All employees in Luxembourg are eligible for basic medical treatment through the public healthcare system, called the La Caisse Nationale de Santé/Gesondheetskees – CNS. Users pay around 10-20% for most treatments, with the rest being paid through social insurance funds. Access to further services and specialists requires further payment, for which many employers offer supplementary health insurance packages.  

All employees in Luxembourg are eligible for severance pay except in cases of gross misconduct.  

Severance and notice in Luxembourg depend on the length of the employee’s service with the company. Notice periods begin at 2 months notice and increase to a maximum of 6 months.  

Severance starts with a minimum of 5 years of service, providing 1 month’s standard salary. This amount increases to a maximum of 12 months’ salary after 30 years of service.  

The Ministry of Labor and Employment is in charge of overseeing much of the country‘s employment legislation, with the Labor and Mines Inspectorate investigating and various national Labor Courts judging on matters of dispute.   

There are 11 public holidays per year on which employees are eligible for paid leave if the day falls on a typical work day. Workers are eligible for an additional day off if the public holiday falls on a Sunday or other rest day.