Testimonial
Manuel Ramos
TERAO ASIA
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.
5/5
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.
PEOs provide specialist knowledge of relevant labor regulations to assure you of total compliance
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
PEOs allow you to operate in a way that gives you greater flexibility in the way you hire and provide for your employees
Save on salary, benefits, and other costs like office space in Luxembourg
A PEO gives you the operational capabilities of an entire team or department for a single monthly fee, with no additional management time requirements.
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.
Manuel Ramos
TERAO ASIA
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.
These two options provide many of the same services but there are differences in how they offer them.
INS Global offers both these services in Luxembourg, so you can choose the one that best suits your needs.
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.
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.
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.
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.
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.
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%.
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.
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.
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