PEO in Luxembourg - A New Path to Expansion | INS Global

PEO in Luxembourg

Hire Globally, Pay Locally, Expand Effortlessly

INS Global is the PEO and global Employer Of Record service provider of choice for companies that want to expand quickly  into the Luxembourg market.

A PEO is an efficient way to hire and manage HR for employees overseas without going through the hassles of setting up a new branch in the target market.

For companies wishing to hire and manage crucial HR functions in overseas target markets in as little as 48 hours, a PEO (Professional Employer Organization) offers a simple and secure path to total global mobility. INS Global offers a PEO in Luxembourg service combining expertise and experience for internationally expanding companies.

As a third-party organization that takes on the responsibilities of an employer, an Employer of Record (EOR) in Luxembourg provides companies with a cost-effective and simple solution for the complications of overseas hiring and employee management. INS Global offers EOR services for companies looking to streamline the complexities of global mobility.

INS Global’s Luxembourg PEO gives you the tools you need to succeed in today’s demanding international market.

Want to have a Team in Luxembourg TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to have a Team in Luxembourg TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.


PEO in Luxembourg - Summary

What are the Advantages of Using a PEO as your Local Partner in Luxembourg?

Expert Guidance on All Legal Matters

PEOs provide specialist knowledge of relevant labor regulations to assure you of total compliance

Get Started in a Fraction of the Time

A PEO can allow you to begin operations in a new country in a matter of days, which is ahead of the months it can take to establish a new entity via company incorporation

Simplify Your Setup Process

PEOs allow you to operate in a way that gives you greater flexibility in the way you hire and provide for your employees

Reduced Spending on Costly Local Necessities

Save on salary, benefits, and other costs like office space in Luxembourg

Enjoy All the Services You Need Through One Point of Contact

A PEO gives you the operational capabilities of an entire team or department for a single monthly fee, with no additional management time requirements.

What Does a PEO Provide Over Company Incorporation in Luxembourg?

Incorporating a new company overseas can be burdensome and costly. If you are unfamiliar with labor regulations in your target market, you could face expensive fines and penalties for the slightest errors in HR.

  • Allows you to expand confidently without fear of costly fees
  • Provides expert advice and guidance on local labor benchmarks and best practices
  • Increases market entry time
  • Decreases the cost of overheads and expenses in Luxembourg
Hiring an Overseas Employee


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.


The Steps Required to Begin Working with a PEO in Luxembourg

  1. We meet to discuss your needs and form an agreement that suits you
  2. Our PEO in Luxembourg provides you with a way to quickly and securely transfer or hire employees to the country
  3. We take care of all necessary HR services for you and your employees
  4. You and your staff continue operations as normal

Do PEOs (Professional Employer Organization) and EORs (Employer of Record) Differ in Luxembourg?

These two options provide many of the same services but there are differences in how they offer them.

  • A PEO acts as your partner in Luxembourg, providing HR services for your employees through a contract made with your company.
  • An EOR legally and officially hires your employees in Luxembourg on your behalf, providing all employment services (including HR) via a contract made directly with the employee (as directed by you).

INS Global offers both these services in Luxembourg, so you can choose the one that best suits your needs.

Labor Law in Luxembourg

Employment Contracts in Luxembourg

Most contracts in Luxembourg are for indefinite periods and must be made in writing. Fixed-Term contracts may be made for specific short-term periods.

There is a guaranteed minimum wage in Luxembourg, based on age and worker type.

Work Hours and Overtime in Luxembourg

Regular working hours are 8 hours per day and 40 hours per week. Any amounts above this must be established in writing with a specific reason given and can only be for a short time.

Maximum working hours, including overtime, must not exceed 10 hours per day or 48 hours per week. These overtime hours are to be paid at 140% of the standard salary.

Holidays and Annual Leave in Luxembourg

There are 11 days of public holiday per year in Luxembourg. Employers must allow workers a day off on these holidays or pay 200% of their standard salary. The legal minimum amount of annual leave a worker is entitled to in Luxembourg is 25 days.

Sick Leave in Luxembourg

Workers in Luxembourg must provide employers with a medical incapacity certificate by the third day if they want to take sick leave and are protected against dismissal for 26 weeks.

Employers are obliged to pay employees on sick leave until the end of the month in which the 77th day of sick leave occurred. After which time, the employee is eligible to receive an allowance based on social security contributions.

Maternity and Paternity Leave in Luxembourg

Female employees are eligible for maternity leave that begins 8 weeks before the due date of a child and lasts a maximum of 20 weeks (with additional leave for late births). During this time, employees may receive an allowance based on their standard salary but limited to 5X minimum wage.

Male employees are eligible for 10 days of paid paternity leave upon the birth of a child. Parents in Luxembourg may choose to take 4-20 (depending on whether that leave is full-time, part-time, or split between parents) months of parental leave until a child is 6 years old.

During this time, they can receive an allowance based on social security payments.

Tax Law and Social Security Contributions in Luxembourg

Income tax in Luxembourg is leveled progressively from 0-42%. The amount also depends on the marital and residency status of the employee. Employers should expect to contribute to their employee’s social security an amount between 12.15-15.2% of their salary. Employee contributions are between 12.2-12.45%.


Discover More Solutions in Luxembourg


No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.