Luxembourg Payroll and Benefits Benchmark guide

Capital Luxembourg City

Currency Euro (€) (EUR)

Date Format dd.mm.yyyy

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

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

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.

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."

General Monthly minimum wage per is 1998,59EUR ($2338.25) for uneducated employees and 2398,30EUR ($2805.62) for educated employees.

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.

General VAT is 17% standard rate.

General 1 Salaries are paid weekly or monthly depending on the company.