Luxembourg Payroll and Benefits Benchmark guide

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

Salaries are paid weekly or monthly depending on the company.

"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."

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.

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.

New fathers are entitled to 10 days of parental leave

Parental leave is allowed until the child turns six years old.

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

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

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.

VAT is 17% standard rate.