Overview
Capital
Luxembourg CityCurrency
Euro (€) (EUR)Date Format
dd.mm.yyyyTaxes
Employer
8.00% - Pensino & Disability
3.05% - Health Insurance
2.95% - Mutual Health Care
0.09% - Accident Insurance
0.11% - National Service for health at work
3.05% - Health Insurance
2.95% - Mutual Health Care
0.09% - Accident Insurance
0.11% - National Service for health at work
Employee
0.00% - Up to 11,265
8.00% - 11,265 - 13,173
9.00% - 13,137 - 15,009
10.00% - 15,009 - 16,881
11.00% - 16,881 - 18,753
12.00% - 18,753 - 20,625
14.00% - 20,625 - 22,569
16.00% - 22,569- 24,513
18.00% - 24,513 - 26,457
20.00% - 26,457 - 28,401
22.00% - 28,401 - 30,345
24.00% - 30,345 - 32,289
26.00% - 32,289 - 34,233
28.00% - 34,233 - 36,177
30.00% - 36,177 - 38,121
32.00% - 38,121 - 40,065
34.00% - 40,065 - 42,009
36.00% - 42,009 - 43,953
38.00% - 43,953 - 45,897
39.00% - 45,897 - 100,002
40.00% - 100,002 - 150,000
41.00% - 150,000 - 200,004
42.00% - Over 200,004
8.00% - 11,265 - 13,173
9.00% - 13,137 - 15,009
10.00% - 15,009 - 16,881
11.00% - 16,881 - 18,753
12.00% - 18,753 - 20,625
14.00% - 20,625 - 22,569
16.00% - 22,569- 24,513
18.00% - 24,513 - 26,457
20.00% - 26,457 - 28,401
22.00% - 28,401 - 30,345
24.00% - 30,345 - 32,289
26.00% - 32,289 - 34,233
28.00% - 34,233 - 36,177
30.00% - 36,177 - 38,121
32.00% - 38,121 - 40,065
34.00% - 40,065 - 42,009
36.00% - 42,009 - 43,953
38.00% - 43,953 - 45,897
39.00% - 45,897 - 100,002
40.00% - 100,002 - 150,000
41.00% - 150,000 - 200,004
42.00% - Over 200,004
Minimum Wage
General
Monthly minimum wage per is 1998,59EUR ($2338.25) for uneducated employees and 2398,30EUR ($2805.62) for educated employees.
Paid Time Off
Vacation days
Employees are entitled to 2.083 days per each month worked in the company, maximum 25 days per year.
Sick days
Employees must notify their employer on the first dayd of sick leave, as well as submit the approporiate medical paperwork. The maximum sick leave period is 26 weeks, after which the employer can terminate the employee. If the employer chooses not to terminate the employee, the employment contract is automatically terminated after 52 weeks of the sick leave. The employer reimburses the employee's full salary until up to the 77th day of the sick leave, afterwards the state will cover until 52 weeks of the leave.
Maternity Leave
Expecting mothers are entitled to 8 weeks leave before birth and 12 weeks after birth (12 weeks after premature birth, multiple births, or if the mother is breastfeeding her child). The legal monthly minimum pay is 1,922.96 a month.
The same applies to mothers who adopt.
Paternity Leave
New fathers are entitled to 10 days of parental leave
Parental Leave
Parental leave is allowed until the child turns six years old.
VAT
General
VAT is 17% standard rate.
Payment
Payroll Frequency
Salaries are paid weekly or monthly depending on the company.
Mandatory Benefits
Pension Fund
Employers contributs 8% of the employee’s wages. Employees contribute 8% of their wages. Contribution ceiling is 9,605 EUR monthly. Minimum contribution is 1,921 EUR monthly.
Social Security
"Employers contribute between 12%-15% of their workers wages, and employees contrbute 11% of their wages. Contributions from both the employers and the employees are computed on a capped basis (app. 115,915 EUR for 2017), and must be withheld by the employer.
Self-employed individuals must register for social security purposes and pay approximately the same rates as combined rates for an employer and an employee."
Termination
Termination Process
Employers must provide notice in accordance with their employees length of employment.
* Less than 5 years: 1 month notice
* 5 - 10 years: 2 months notice
* Over 10 years: 3 months notice
Advance Notice
Employees must provide notice of resignation in accordance with their length of employment:
* Under 5 years: 1 months notice
* 5 - 10 years: 2 months notice
* Over 10 years: 3 months notice
Severance Pay
Between 5 and up to 10 years' service: 2 months severance pay.
Between 10 and up to 15 years' service: 3 months severance pay.
Between 15 & up to 20 years' service: 4 months severance pay.
Between 20 and up to 25 years' service: 6 months severance pay.
Between 25 and up to 30 years' service: 9 months severance pay.
30 years' service or more: 12 months severance pay.
