Gibson Watts Global: PEO & EOR Services

LUXEMBOURG PEO & EOR

Hire in Luxembourg without a local entity today

As a Global PEO & EOR service provider, we pride ourselves on our global reach, in-country knowledge, and ability to swiftly and efficiently mobilize workers around the world. Our robust PEO/EOR covers everything from global HR, payroll, compliance, in-country support, immigration, visas, and more.

Get started and hire in Luxembourg today with Gibson Watts Global.

DID YOU KNOW
  • Tiny but mighty – Luxembourg is one of the world’s smallest countries, roughly the size of Rhode Island, yet it has one of the highest GDP per capita in the world, making it a powerhouse for business and finance.
  • Multilingual marvel – Residents typically speak three languages: Luxembourgish, French, and German. This makes Luxembourg an incredibly versatile location for international companies and cross-border teams.
  • Fortress of Innovation – Luxembourg is known for its robust fintech and tech sectors, with a strong focus on space technology, digital infrastructure, and sustainable finance, making it an attractive hub for global talent.

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Luxembourg EOR Services

A dynamic hub in Latin America for skilled workforce and market reach

Luxembourg’s strategic location, large domestic market, and growing sectors (tech, finance, energy) make it a compelling destination for companies seeking to expand in Latin America. But local employment regulation, wage setting, social security contributions, labour reforms, and regional cost differences require strong compliance. With Gibson Watts Global as your Employer of Record in Colombia, you get local legal, payroll, and HR expertise to handle administrative and regulatory responsibilities – allowing you to focus on operations and market growth.

Working in Luxembourg

Financial Year Dates

Luxembourg’s fiscal year aligns with the calendar year: 1 January to 31 December.

Minimum Wage

As of 1 May 2025, the statutory minimum wage is:

  • Unskilled workers (18+): €2,703.74 per month
  • Skilled workers (18+): €3,244.48 per month
  • 17–18 years old: €2,162.99 per month
  • 15–17 years old: €2,027.80 per month

Standard working hours

The standard workweek is 40 hours, typically distributed over 5 days.

Overtime

Overtime is compensated at 125% of the regular hourly rate for the first 2 hours and 150% thereafter.

Holiday Allowance

Employees are entitled to a minimum of 26 working days of paid annual leave per year.

Sick Leave

Employees are entitled to 100% of their salary for the first 77 days of illness, provided they have contributed to social security.

Maternity & Paternity Leave

Maternity leave: 20 weeks (8 weeks before and 12 weeks after childbirth) at 100% of salary.

Paternity leave: 10 days, typically taken within 2 months of the child’s birth.

Public Holidays

Luxembourg observes several public holidays, including:

    • New Year’s Day
    • Labour Day
    • National Day
    • Christmas Day

Social Contributions

Employee Contributions:

  • Pension: 8% of gross salary
  • Sickness: 2.80% of gross salary, capped at €13,518.68 per month

Employer Contributions:

  • Pension: 8% of gross salary
  • Sickness: 2.80% of gross salary, capped at €13,518.68 per month

Income Tax

Luxembourg employs a progressive tax rate system for individuals:

  • 0% on income up to €12,438
  • 8% on income between €12,438 and €14,508
  • 9% on income between €14,508 and €16,578
  • 10% on income between €16,578 and €18,648
  • 11% on income between €18,648 and €20,718
  • 12% on income between €20,718 and €22,788
  • 14% on income between €22,788 and €24,939

Health Care

Luxembourg provides universal health coverage through the Caisse Nationale de Santé (CNS).

Employees contribute to the CNS via social security contributions, ensuring access to medical services, hospital care, and prescription medications.

Visas

EU/EEA/Swiss Nationals: No visa required for employment.

Non-EU Nationals: Must obtain a work and residence permit. Employers typically assist in the application process.

13th salary?

Luxembourg does not have a statutory 13th-month salary. However, 13th-month bonuses are common in certain sectors and are often negotiated individually or through collective agreements.

Cultural Information

Luxembourg is renowned for its rich cultural heritage, blending Luxembourgish, French, and German influences. The country’s unique status as a grand duchy adds to its distinct identity.

Cuisine: Luxembourgish cuisine is hearty and influenced by French and German culinary traditions. Dishes like Judd mat Gaardebounen (smoked pork with broad beans) and Kachkéis (baked cheese) are staples.

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