Updated on: 2025/08/04 14:35 (UTC)
Overview
The Grand Duchy of Luxembourg is a constitutional monarchy with an elected parliament and is a member of the European Union. The country of Luxembourg is bordered to the west by Belgium, to the east by Germany, and to the south by France. The country of Luxembourg is a different entity than Belgium’s province of Luxembourg, although Belgium’s province of Luxembourg, which borders the country of Luxembourg, formerly was part of the country of Luxembourg.
Luxembourg consists of 12 first-order administrative divisions known as cantons. They are Capellen, Clervaux, Diekirch, Echternach, Esch-sur-Alzette, Grevenmacher, Luxembourg, Mersch, Redange, Remich, Vianden, and Wiltz.
The primary written and spoken language used in Luxembourg is the Luxembourgish language, which along with the French and German languages are the country’s official languages. French is the main language used in Luxembourg’s legislative and administrative governmental processes. The English language is commonly used in Luxembourg. The writing system for both the Luxembourgish language and the French language is an alphabetic writing system with Latin script that includes the 26 letters of the English alphabet, and Luxembourgish includes an additional three letters that are combinations of a standard Latin vowel and an accent mark (diacritic). One of the additional letters, é, is the combination of the letter “e” and an acute diacritic ( ́ ), and two of the additional letters, ä and ë, are combinations of a vowel and a diaeresis ( ̈ ). The accent marks used in French are the acute diacritic, diaeresis, grave diacritic ( ‘ ), cedilla ( ̧ ), and circumflex ( ̂ ).
The directionality that is used for written Luxembourgish text and written French text, as is used for English writing, is progression along horizontal lines from left to right, with successive horizontal lines read from top to bottom. In Luxembourgish, the country of Luxembourg’s name is rendered as Lëtzebuerg. The country’s name in French is the same as its name in English.
Luxembourg’s currency is the euro.
Employers in Luxembourg’s are responsible for upholding employment-based income tax laws, withholding from employee salaries, contributing to Luxembourg’s social security program and making contributions to an employment fund. In addition, employers must follow requirements outlined in Luxembourg’s Labor Code regarding minimum wages, wage payment, benefits and the treatment of workers. There are no local income taxes.
Foreign workers are entitled to the same rights as Luxembourg citizens and are generally covered by the same tax and workplace laws. Visa requirements for foreign workers vary depending on the country of origin and the category of work to be performed.
Luxembourg residents working in the United States are covered by U.S. tax law with possible treaty and work status exclusions applying. Work within the U.S. states and territories is covered by various labor laws.
News articles regarding payroll in Luxembourg are available in
CURRENCY DETAILS
The currency of Luxembourg is the euro (€), which Luxembourg uses because it is part of the euro area, also known as the eurozone, which is a group of countries that adopted the euro as their currency. The internationally recognized three-letter currency code for the euro is EUR, which also is one of the currency’s two commonly used currency symbols. The English plural form of euro officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is euros. In Luxembourgish, the plural form of euro is euroën, and in French, the plural form of euro is euros.
When an amount of euro is written using the currency symbol € in accordance with the European Commission’s standard placement treatment of the symbol, which is the placement treatment used for the English language, the symbol precedes the numerical value with no space between the numerical value and symbol. When an amount of euro is written in Luxembourgish or French using the currency symbol €, the symbol follows the numerical value with a space between the numerical value and symbol.
When an amount of euro is written using the currency symbol EUR, the symbol precedes or follows the numerical value with a space or no space between the numerical value and symbol.
One hundredth ( 1 ⁄ 100 ) of a euro is referred to in English as a cent and the English plural form of cent officially recognized by the European Commission is the same as its singular form, although in common English parlance the plural form is cents. In Luxembourgish and French, as officially recognized by the European Commission, one hundredth of a euro also is referred to as a cent and its plural form is cents, although in Luxembourgish parlance, one hundredth of a euro is referred to as a zantim, with the plural form of zantimen, and in common French parlance, one hundredth of a euro is referred to as a centime, with the plural form of centimes.
When amounts of euro are written in Luxembourgish or French, the comma that in English separates the thousands place from the hundreds place instead is rendered as a space or as a dot (.), and the dot that in English separates the ones place from the tenths place instead is rendered as a comma.
TAXES
Luxembourg’s income tax is administered by Luxembourg Inland Revenue, also known as the Direct Tax Administration (Administration des contributions directes, abbreviated as ACD). Income tax withholding also is known in Luxembourg as retenue d’impôt sur les traitements et salaires, abbreviated as RTS.
Social tax contributions are required for both employers and employees.
The tax year is the calendar year, Jan. 1 to Dec. 31.
Coronavirus (Covid-19) Guidance: Agreements between Luxembourg and Germany and Luxembourg and Belgium, both effective starting March 11, 2020, allow days worked at home by cross-border commuters who live in one country and work in the other, but must work at home because of the new coronavirus, to count as days worked in the normal work country. Both agreements are in effect until March 31, 2022, and the Belgium agreement automatically extends to June 30, 2022, if not ended at least two weeks before March 31, 2022.
Residents of Luxembourg or France who normally live in one country and work in the other can ordinarily work from home for 29 days per year while remaining subject to tax in the work country. Days worked at home by these employees because of coronavirus-related restrictions do not count towards the day limit, effective from March 14, 2020, to March 31, 2022.
According to European Commission guidance, employees who normally work in one European Union member country and live in another are still considered to be insured by the social insurance system of the normal work country while working at home.
Additionally, Luxembourg and Germany, Luxembourg and France, and Luxembourg and Belgium also have their own agreements extending social security coverage in a worker’s normal work country despite working at home in another country. The agreements are in effect until June 30, 2022.
Income Taxes
Coverage: All resident and nonresident employees are subject to income tax.
Employees: Resident employees are subject to income tax on both domestic and foreign income. Employees are considered to be resident in Luxembourg if they have their domicile or habitual place of residence in Luxembourg. A person who resides in Luxembourg for more than six consecutive months, disregarding short periods away from the country, is considered to have a habitual residence there.
Rates and Thresholds: Luxembourg employees are grouped into three taxpaying classes: generally, Class 1 includes single persons, Class 1a includes single persons with children and persons over age 64 and Class 2 includes married persons.
Effective for 2021, unchanged from 2020, the minimum tax threshold is €11,265 for Class 1; €22,530 for Class 1a; and €22,530 for Class 2. For all three classes, rates are progressive, with marginal rates ranging from zero to 42%.
Effective for 2021, unchanged from 2020, Luxembourg’s personal income basic tax rates and minimum and maximum amounts of annual income for each tax bracket are as follows:| Range of Annual Income (Euro) | Income Tax Rate |
|---|---|
| Up to €11,265 | Zero |
| More than €11,265 and up to €13,137 | 8% |
| More than €13,137 and up to €15,009 | 9% |
| More than €15,009 and up to €16,881 | 10% |
| More than €16,881 and up to €18,753 | 11% |
| More than €18,753 and up to €20,625 | 12% |
| More than €20,625 and up to €22,569 | 14% |
| More than €22,569 and up to €24,513 | 16% |
| More than €24,513 and up to €26,457 | 18% |
| More than €26,457 and up to €28,401 | 20% |
| More than €28,401 and up to €30,345 | 22% |
| More than €30,345 and up to €32,289 | 24% |
| More than €32,289 and up to €34,233 | 26% |
| More than €34,233 and up to €36,177 | 28% |
| More than €36,177 and up to €38,121 | 30% |
| More than €38,121 and up to €40,065 | 32% |
| More than €40,065 and up to €42,009 | 34% |
| More than €42,009 and up to €43,953 | 36% |
| More than €43,953 and up to €45,897 | 38% |
| More than €45,897 and up to €100,002 | 39% |
| More than €100,002 and up to €150,000 | 40% |
| More than €150,000 and up to €200,004 | 41% |
| More than €200,004 | 42% |
Registration: To calculate the proper amount of withholding, the employer must review each employee’s tax card, which identifies the employee’s tax rate and sets forth the employee’s deductions. If no tax card is available, the employer must apply the highest withholding tax rate for that employee. For resident employees and pensioners, tax cards are automatically mailed to the employee by the relevant tax office. Nonresident employees must submit an application, on Form 164NR, for a nonresident tax card.
As noted below, both the employer and employee also must be registered with social security.
Taxable Amounts: Taxable income includes all monetary and nonmonetary benefits provided by the employer, including salaries, wages, bonuses, royalties, subsistence allowances, unemployment benefits, sickness and maternity benefits paid in lieu of salary and employer-provided pensions. Overtime pay and surcharges for night work and work on Sundays and public holidays, however, are generally exempt from income tax.
Withholding Methods: Wages, minus social security contributions and any permitted deductions, are subject to withholding by the employer. The amount withheld is treated as prepayment of the employee’s income tax. If the income tax owed is less than the amount withheld, the employee is entitled to a refund. Withholding rates are based on the ultimate income tax rate, plus an additional surcharge for the unemployment fund.
The additional surcharge for the unemployment fund is generally 7% for most employees, but increases to 9% for employees in Classes 1 or 1a with income greater than €150,000 and employees in Class 2 with income greater than €300,000.
Effective since May 1, 2019, and applicable to wages paid since Jan. 1, 2019, employers must provide employees who are paid up to €3,000 a month with a credit towards income tax withheld. This credit is known as the minimum wage tax credit (crédit d’impôt salaire social minimum, abbreviated as CISSM). The amount of the credit is €70 per month for employees who are paid a monthly salary of €1,500 to €2,500, and gradually decreases to zero for employees who are paid a monthly salary of €2,500 to €3,000.
Returns and Remittance: Within 10 days of the end of the applicable reporting period, an employer must remit to the government income tax withheld from salaries and pensions during that period, and must report data regarding the withheld income tax using Form 950, Declaration of Withholding Tax on Remunerations and Subsidized Tax Credits. The reporting period is monthly when the total amount of deductions per month for all employees is at least €750, quarterly when the amount is €75 to €750 per month, and yearly if the amount is less than €75 per month. Employers can file the form electronically using the MyGuichet.lu electronic reporting service, and a link to the applicable MyGuichet.lu procedure for electronically filing the form is accessible from the government’s withholding tax on salaries webpage on Guichet.lu.
Income tax returns for individuals must be filed on Form 100 with the ACD no later than March 31 of the year following the calendar year in which the income was earned.
Employee Share Plans: Effective Jan. 1, 2021, the previous ACD circular governing the tax treatment of stock options, Circular No. 104/2 of Nov. 29, 2017, was abolished.
Effective starting Jan. 1, 2021, employers may grant a participatory bonus (prime participative) to employees, and 50% of the bonus is exempt from income tax. The maximum bonus subject to the exemption is 25% of the employee’s regular annual salary, excluding benefits in cash or in kind, such as thirteenth-month or other bonuses and the participatory bonus itself. To benefit from the exemption, employers may grant a total amount of participatory bonuses limited to 5% of the employer’s profits in the year before the bonuses are paid. Employers must notify their local tax office according to ACD instructions when participatory bonuses are paid.
Recordkeeping: Employers must retain withholding tax files for 10 years.
Penalties: By statute, a person who fails to pay income tax when due is subject to interest in the amount of 1% per month. This amount may be reduced by regulation. If the tax authorities approve late payment, interest may be imposed at up to 0.2% per month.
Failure to timely file a return results in imposition of a surcharge of up to 10% of the tax due, plus a fine in an amount depending on the reasons for the failure.
The employer is personally liable for tax withheld, as well as for tax that should have been but was not withheld, unless fault cannot be attributed to the employer.
Social Taxes
Luxembourg’s Ministry of Social Security (Ministère de la Sécurité Sociale) and its Common Center of Social Security (Centre commun de la sécurité sociale, abbreviated as CCSS) oversee most aspects of the country’s social insurance system. The Employers’ Mutual Insurance Fund (Mutualité des employeurs, abbreviated as MDE) oversees the country’s system for providing replacement compensation to workers whose ability to work was reduced because they became injured or ill in the course of employment.
Coverage: All employees are subject to social security deductions from wages to cover benefits for illness, unemployment, occupational accidents and pensions.
Rates and Thresholds: The maximum monthly amount of employment income paid to an employee upon which the employee and employer may be assessed social security taxes is five times the amount of the general monthly minimum wage. The general monthly minimum wage used for this purpose is the monthly minimum wage for unskilled workers who are at least 18 years of age. This cap is not in effect for the long-term care insurance tax, also known as the dependency (dépendance) insurance tax. However, taxable income subject to the long-term care insurance tax may be reduced by an allowance equal to one-fourth of the minimum wage for unskilled workers who are at least 18 years of age.
Effective starting Oct. 1, 2021, the maximum monthly amount of employment income paid to an employee upon which the employee and employer may be assessed social security taxes, other than long-term care insurance taxes, is €11,284.77, and the allowance applicable to the long-term care insurance tax is €564.24. Effective from Jan. 1, 2021, to Sept. 30, 2021, the maximum monthly amount of employment income paid to an employee upon which the employee and employer could be assessed social security taxes, other than long-term care insurance taxes, was €11,009.65, and the allowance applicable to the long-term care insurance tax was €550.48. Effective for 2020, the maximum monthly amount of employment income paid to an employee upon which the employee and employer could be assessed social security taxes, other than long-term care insurance taxes, was €10,709.97, and the allowance applicable to the long-term care insurance tax was €535.50.
If an employee was paid during a month less than the monthly minimum wage applicable to that employee, social taxes are assessed on the employee and employer as if the employee were paid the monthly minimum wage applicable to that employee.
Main contribution rates: Employees and employers both are assessed a pension tax and a sickness (maladie) insurance tax that consists of a health care (soins de santé) component and a cash benefits (prestations en espèces) component. Employees, but not employers, are assessed a long-term care insurance tax. Employers, but not employees, are assessed an accident insurance (Assurance accident) tax and a tax to fund the Multisectoral Occupational Health Service (Le Service de Santé au Travail Multisectoriel, abbreviated as STM). The standard accident insurance tax rate is multiplied by a factor known as the bonus/penalty factor (Facteur bonus-malus), determined for each employer by the Accident Insurance Association (Association d’assurance accident), to either increase or decrease the employer’s final rate.
Employees are assessed a pension tax of 8%, a sickness insurance tax of 3.05% that consists of a health care component of 2.8% and a cash benefits component of 0.25%, and a long-term care insurance tax of 1.4%.
Effective for 2021, employers are assessed a pension tax of 8%, a sickness insurance tax of 3.05% that consists of a health care component of 2.8% and a cash benefits component of 0.25%, a standard accident insurance tax of 0.75%, with possible tax rates ranging from 0.675% to 1.125%, and a Multisectoral Occupational Health Service funding tax of 0.14%. Effective for 2020, employers were assessed a pension tax of 8%, a sickness insurance tax of 3.05% that consists of a health care component of 2.8% and a cash benefits component of 0.25%, a standard accident insurance tax of 0.75%, with possible tax rates ranging from 0.675% to 1.125%, and a Multisectoral Occupational Health Service funding tax of 0.11%.
Mutual insurance scheme contribution rates: Luxembourg’s system for providing replacement compensation to employees who became injured or ill in the course of employment and whose working capacity was reduced because of that injury or illness is funded by a mutual insurance scheme contribution assessed on employers. An employer’s mutual insurance scheme contribution rate is the rate assigned to its contribution class, and an employer is assigned to one of four contribution classes based on its financial absenteeism rate. An employer’s financial absenteeism rate is determined by dividing the applicable amount reimbursed to the employer for cases of incapacity to work by the employer’s applicable total amount of employment income paid to employees upon which social taxes may be assessed. Employers with a financial absenteeism rate of:
- less than 0.65% are assigned to Contribution Class 1, which for 2021 entails a mutual insurance scheme contribution rate of 0.53% and for 2020 entailed a mutual insurance scheme contribution rate of 0.46%;
- at least 0.65% but less than 1.6% are assigned to Contribution Class 2, which for 2021 entails a mutual insurance scheme contribution rate of 1.05% and for 2020 entailed a mutual insurance scheme contribution rate of 1.07%;
- at least 1.6% but less than 2.5% are assigned to Contribution Class 3, which for 2021 entails a mutual insurance scheme contribution rate of 1.5% and for 2020 entailed a mutual insurance scheme contribution rate of 1.58%; and
- at least 2.5% are assigned to Contribution Class 4, which for 2021 entails a mutual insurance scheme contribution rate of 2.88% and for 2020 entailed a mutual insurance scheme contribution rate of 2.7%.
Chamber of Employees dues: Employees annually are assessed dues to fund the operations of the Chamber of Employees (Chambre des salariés, abbreviated as CSL), which is an organization that all employees working in Luxembourg and who are at least 18 years of age are required to join. The Chamber of Employees has a role in reviewing and commenting upon drafts of laws that affect employment and helps provide education to employees regarding their workplace rights and responsibilities.
Each employee must have a Chamber of Employees dues amount deducted from their employment income and submitted to the CCSS in July. Employers must deduct a dues amount of €10 from each employee whom they pay less than €300 per month and must deduct a dues amount of €31 from each employee whom they pay at least €300 per month.
Registration: Each employer must register with the CCSS by submitting an operating declaration within eight days after the first employee is hired. CCSS then sends the employer a registration certificate that includes the business registration number and the risk class allocated to the business. The employer also must register each employee with social security by submitting to CCSS a registration form for a private-sector employee within 8 days after the employee begins work. Registration with the MDE is conducted through registering with the CCSS.
Taxable Amounts: Social security contributions are based on gross salary, within the stated minimum and maximum amounts. Overtime pay is generally exempt from both income tax and social taxes.
Returns and Remittance: Each month, the employer must submit to CCSS each employee’s gross salary and the number of hours for which the employee was paid.
Effective since Jan. 1, 2020, employers must submit all non-overtime hours for which employees were paid, including periods of paid leave, other paid absences from work, and public holidays. Effective until Dec. 31, 2019, employers were to submit all non-overtime hours actually worked by employees.
After the employer submits the data for each employee regarding gross salary and number of compensated hours, the CCSS then calculates the amount of social security contributions due for each employee (both employer and employee contributions) and sends a monthly invoice to the employer. The employer must forward the invoiced amount to CCSS within 10 days of receiving the invoice.
Employers must electronically report to the ACD on an annual basis data regarding salaries they paid to employees during a year and the pension contributions they paid that year. The report through which the data are provided is known as a Salary and Pension Account Statement (Extrait de compte salaire et pension, abbreviated as ECSP). The ECSP detailing the data for a year must be submitted electronically by March 1 of the year following the reported year. Employers can file the ECSP using the MyGuichet.lu electronic reporting service, and a link to the applicable MyGuichet.lu procedure for electronically filing the ECSP is accessible from the government’s filing salary and pension statements webpage on Guichet.lu.
Recordkeeping: Luxembourg does not require employers to keep social security contribution records for any particular length of time. However, the CCSS is required to keep such records for five years. CCSS also is entitled to request records from the employer sufficient to ensure the employer is complying with the social security laws, and to visit the employer’s premises to inspect such records.
Penalties: An employer who fails to make timely social security payments must pay interest, starting on the first day of the month after the missed deadline, in the amount of 0.6% per calendar month.
An employer who is more than 30 days late in registering an employee may be fined by CCSS in the amount of €50 per month of delay, up to a maximum fine of €2,500. Employers who otherwise fail to comply timely with the social security laws, or who provide late or inaccurate information that they are required to provide, also may be fined up to €2,500. If an employer knowingly violates the social security laws, the person responsible may be fined €251 to €6,250 and if that person acted with fraudulent or malicious intent, may also be imprisoned for a term ranging from a minimum of eight days to a maximum of three months.
Other Taxes
Luxembourg’s national government does not assess any taxes on employment income other than those covered in the Income Taxes and Social Taxes sections of this primer.
State/Jurisdiction Taxes
Taxes on employment income are not assessed by any of Luxembourg’s cantons or local jurisdictions.
COMPENSATION AND BENEFITS
Luxembourg employers must follow the Code du Travail, or the Labor Code, when employing workers. The Labor Code includes requirements for minimum wage, overtime, hours of work, holidays, leave, wage payment and termination pay. Retirement benefits are covered under social taxes, above.
The Luxembourg Labor Code is administered by the Inspectorate of Labour and Mines (Inspection du travail et des mines, abbreviated as ITM). As of Jan. 1, 2009, the provisions of the Labor Code apply to all employees, and prior distinctions between white collar and blue collar employees were abolished.
Coronavirus (Covid-19) Guidance: Employers in the healthcare and home care sectors (French) considered essential by the government may make requests to the Ministry of Labor and Employment for permission to increase their employees’ maximum working hours to 12 hours per day and 60 hours per week.
Effective from April 1 to June 30, 2020, all days of paid sick leave were paid by the government. Effective starting July 1, 2020, days of sick leave paid to employees who must quarantine are reimbursed in full, instead of at 80%, by the Employers’ Mutual Insurance Fund (Mutualité des Employeurs, abbreviated as MDE).
Luxembourg also offered a short-term subsidy of 80% of employees’ normal wages through June 30, 2021, to employers who are forced to cut employee hours because of fallout from the coronavirus. The maximum subsidy is 250% of the monthly minimum wage for unskilled workers at least 18 years of age. Employers in any sector may apply with vulnerable industries (e.g. hotel, restaurants, and catering) subject to fewer stipulations such as rehiring and staffing levels and recovery planning. Applications are accepted for each month by the 12th day of the preceding month. (Benefits are not available retroactively.) Applications will be taken via the state of Luxembourg’s online portal.
Until April 2, 2021, employees could send an application to the National Health Fund (Caisse nationale de santé, abbreviated as CNS) and their employer for either five, 12, or 18 days of leave for family reasons if they must care for a child who must quarantine, is hospitalized, or cannot attend a school or care facility, with the amount of leave dependent on the child’s age and situation. This leave is considered a period of sick leave and is reimbursed in full.
Until Sept. 30, 2021, employers in specified sectors may apply through MyGuichet.lu for subsidies to offset the cost of the minimum wage increases that took effect Jan. 1, 2021. The amount of the subsidy is €500 per eligible employee employed in a chosen month from January to June 2021, up to a maximum of €200,000 per business. Eligible employees must have been hired before Dec. 31, 2020, and must earn at least the general minimum wage but less than the minimum wage for skilled workers.
Minimum Wage
There are several levels of monthly minimum wage in Luxembourg. The minimum wage for unskilled workers who are at least 18 years of age is considered to be the country’s general minimum wage. The minimum wage for skilled workers who are at least 18 years of age is 120% of the general minimum wage. The minimum wage for workers who are 17 years of age is 80% of the general minimum wage. The minimum wage for workers who are 15 or 16 years of age is 75% of the general minimum wage.
The general minimum wage is determined by multiplying the monthly reference minimum social wage (salaire social minimum de référence) by one hundredth ( 1 ⁄ 100 ) of the index number (nombre indice), then rounding the result to the nearest cent.
Effective starting Oct. 1, 2021, Luxembourg’s monthly minimum wages are as follows:
- skilled workers at least 18 years of age, €2,708.35;
- unskilled workers at least 18 years of age, €2,256.95;
- workers 17 years of age, €1,805.56; and
- workers 15 or 16 years of age, €1,692.72.
Effective from Jan. 1, 2021, to Sept. 30, 2021, Luxembourg’s monthly minimum wages were as follows:
- skilled workers at least 18 years of age, €2,642.32;
- unskilled workers at least 18 years of age, €2,201.93;
- workers 17 years of age, €1,761.54; and
- workers 15 or 16 years of age, €1,651.45.
Effective for 2020, Luxembourg’s monthly minimum wages were as follows:
- skilled workers at least 18 years of age, €2,570.39;
- unskilled workers at least 18 years of age, €2,141.99;
- workers 17 years of age, €1,713.60; and
- workers 15 or 16 years of age, €1,606.50.
To be considered a skilled worker, one must have any of the following qualifications:
- a technical and professional proficiency certificate or its equivalent,
- a manual skill certificate plus at least two years of experience in the relevant trade,
- a technical and professional preliminary certificate plus at least five years of experience in the relevant trade, or
- at least 10 years of experience in the trade.
An employer who fails to pay the applicable minimum wage is subject to a fine of €251 to €25,000. For a second violation within two years, the maximum fine may be doubled.
In Luxembourg, the minimum wage also is referred to as the minimum social salary (salaire social minimum).
Overtime
Overtime work generally is permitted only with prior consent of the Ministry of Labor and Employment and only under exceptional circumstances. No permission is required when overtime is necessary because of accidents or emergencies, as long as such overtime does not exceed three days in a given month.
Employees (other than senior management) who work overtime are entitled to either 140% pay or compensatory time off at a rate of 150% of the overtime hours worked, and workers under 18 are paid double-time. Pregnant employees may not be required to work overtime and workers under the age of 18 can only be required to work overtime under special circumstances.
Special overtime rules apply to the banking, transport and hotel industries.
Employees who work on a holiday are entitled to double pay.
Employees who work on Sunday are entitled to a compensatory day off plus 70% of their normal hourly rate or can be paid 170% of their normal hourly rate. Overtime pay is added to this if applicable. Employees who work four hours or less are entitled to half a day off; employees who work more than four hours are entitled to a full day off. Employees under the age of 18 who work Sundays are entitled to twice their normal hourly rate.
For work performed between 10 p.m. and 6 a.m., employees are entitled to a 25% premium above their normal pay. Young workers are not permitted to perform night work except as part of training in particular types of workplaces, such as hospitals, hotels, the armed forces and bakeries.
Violations of these provisions are punishable by a fine of €251 to €15,000. Violation of the provisions with respect to Sunday work are punishable by a fine of €251 to €5,000 and/or imprisonment ranging from eight days to one month. Violation of the holiday pay provisions is punishable by a fine of €251 to €50,000 and/or a term of imprisonment ranging from eight days to three months.
Hours of Work
The normal workday in Luxembourg is eight hours, and the normal workweek is 40 hours. Pursuant to a work organization or flextime plan, however, employees may be scheduled to work up to 10 hours per day and 48 hours per week, as long as their average weekly hours during a four-week period do not exceed 40. The four-week reference period may be extended up to 12 months by a collective bargaining agreement or with the permission of the Ministry of Labor and Employment.
Holidays
Employees are entitled to 10 national holidays per year with pay:
- Jan. 1: New Year’s Day (Nouvel An)
- Easter Monday (Lundi de Pâques)
- May 1: May Day (Premier Mai), known internationally as Labor Day
- May 9: Europe Day (Journée de l’Europe)
- Ascension
- Whit Monday (Lundi de Pentecôte)
- June 23: Grand Duke’s Birthday (Jour de la célébration de l’anniversaire du Grand-Duc), also known as National Day
- Aug. 15: Assumption (Assomption)
- Nov. 1: All Saints’ Day (Toussaint)
- Dec. 25: Christmas Day (Premier jour de Noël)
- Dec. 26: Second Day of Christmas (Deuxième jour de Noël), also known as St. Stephen’s Day
If one of the holidays falls on a Sunday, or on an employee’s regular day off, the employee may take another day off within three months of the date of the holiday in question.
Leave
Effective since Jan. 1, 2019, employees who have completed at least three months of uninterrupted service with their employer are entitled to a minimum of 26 days of annual leave with pay. Workers with disabilities and workers whose schedules do not allow them to receive at least 44 hours of continuous rest per week are entitled to six additional days of annual leave, while mine workers are entitled to three additional days of annual leave.
Annual leave generally must be taken during the calendar year in which it is earned. If the business needs of the employer have precluded an employee from taking leave during the calendar year, however, the deadline to take annual leave may be extended to March 31 of the following year. Employees need not take the entire 26 days in one chunk, but must take at least two calendar weeks off at some point during the year.
An employer may deny an employee’s request to take annual leave if the employee had unexcused absences amounting to more than 10% of the scheduled work time during the earlier part of the year.
While on leave, employees are not allowed to do paid work for another establishment. If they do they can lose their compensation for leave.
Extraordinary leave: Employees are entitled to paid leave for the following:
enrollment for military service (one day’s leave);
death of a grandparent, grandchild, brother-in-law, or sister-in-law (one day);
birth of a child (two days for the father);
marriage of a child (two days);
moving (two days);
death of a spouse, parent, sibling, child, parent-in-law, son-in-law, or daughter-in-law (three days);
marriage (six days); and
adoption of a child under age 16 except when adoption leave has already been provided (two days).
Family leave: Employees are entitled to family leave to take care of a child under the age of 15 who is suffering from a serious illness or injury. Leave is limited to two days per year per child, although in exceptional circumstances the two-day limit may be extended with the approval of the Social Security Medical Control Board. An employee taking family leave must notify the employer on the day of the leave of the necessity of the absence and provide the employer with a medical certificate. The employer is reimbursed for the employee’s absence from work by the Sickness Fund for Private Sector Employees.
Maternity leave: Pregnant employees are entitled to at least 16 weeks of paid maternity leave, beginning eight weeks before the due date and continuing for eight weeks afterwards. When the birth occurs before or after the expected due date, the remaining maternity leave is extended or reduced so that the employee receives a full 16 weeks of leave. Maternity leave is extended by four weeks for breast-feeding, multiple births, or premature birth. The employee continues to accrue annual leave while on maternity leave. The employee must submit a medical certificate of pregnancy to the employer and to social security authorities no later than 10 weeks before the expected due date.
Paternity leave: A father is entitled to 10 days of leave with pay for the birth of a child, with two days of paid leave provided by the employer and eight days of paid leave financed by the government. An employee seeking to take paternity leave must inform his employer at least two months in advance of taking the leave that he plans to take the leave.
Parental leave: Each parent is entitled to six months of full-time parental leave, or 12 months of part-time leave with the employer’s permission, for the birth or adoption of a child. One parent must take parental leave immediately after completion of maternity leave or lose entitlement to the leave, while the other parent may take parental leave at any point before the child’s fifth birthday. The entire period of parental leave must be taken at one time—it may not be divided into shorter segments. If part-time leave is taken, the parent must work less than half his or her normal hours. Full-time parental leave may not be taken at the same time by both parents, but both can take part-time leave at the same time to make sure the child is continuously cared for by one of them. An employee is entitled to take parental leave if:
- the employee’s household includes at least one child under the age of 5 for whom the employee is paid a family allowance,
- the employee was lawfully employed in Luxembourg for at least 12 continuous months with the employer when the child was born or adopted and has completed any probationary period,
- the employee regularly works at least half a normal workweek, and
- the employee made contributions to social security for at least 12 months immediately prior to taking parental leave.
A parent who wishes to take parental leave after the expiration of maternity leave must notify the employer in writing two months before maternity leave begins. A parent who wishes to take parental leave at another time must notify the employer in writing at least four months before parental leave begins. When parental leave begins, the employer stops paying the employee’s salary and benefits, and the employee instead receives a fixed monthly sum from the National Family Benefits Fund. The monthly benefit for full-time leave is at least the general minimum wage and is at most 1 2 ⁄ 3 times the general minimum wage, and the benefit is prorated for part-time leave. During a period of parental leave, seniority continues to accrue, but the employee does not accrue annual leave. When the period of parental leave ends, the employer must allow the employee to return to the prior job or to another job with equal or greater pay for which the employee is qualified.
Sick leave: Employees are entitled to employer-provided paid sick leave, for which they receive their normal wages, from the first day of illness or injury for up to a maximum of 77 days in a period of 18 consecutive months. The employer is still responsible for providing paid sick leave to employees who reach the 77-day threshold until the end of the month in which the threshold is reached. Afterwards, employees may receive benefits from the National Health Insurance Fund (Caisse national de santé, abbreviated as CNS) for a maximum of 78 weeks in a 104-week period.
Employees must notify the employer on the first day of absence from work due to illness or injury. No later than the third day, the employee must submit a medical certificate confirming the inability to work and stating the expected duration of the absence.
Employers may generally be reimbursed for 80% of wages paid to employees on sick leave by the Employers’ Mutual Insurance Fund (Mutualité des Employeurs, abbreviated as MDE).
Wage Payment
Wages must be paid each month, no later than the last day of the relevant calendar month.
The employer must provide the employee with a detailed wage statement each month. The wage statement must state the wage period, the number of hours worked, the applicable pay rate and any other payments made.
Bonuses and Special Benefits
Luxembourg does not require employers to provide bonus payments to employees, but a thirteenth-month bonus customarily is provided to employees in December.
Termination Pay
An employee with at least five years of service who is terminated for any reason other than gross misconduct is entitled to severance pay. The amount of severance pay depends on the number of years of service and ranges from one month’s pay for employees with five to 10 years of service to a year’s pay for employees with at least 30 years of service. The first €12,500 of severance pay is not subject to income taxes or social security contributions.
The amount of notice of termination required depends on the reason for termination, the size of the employer and the employee’s years of service. Generally, two months of notice is required for employees with fewer than five years of service, four months of notice for employees with at least five but fewer than 10 years of service, and six months of notice for employees with at least 10 years of service. No notice period is required for termination for gross misconduct, although employees with at least 150 employees must first schedule an interview with the employee prior to termination. In all cases, an employer must inform the employee of termination in writing, either by registered letter or by obtaining the employee’s signature on the termination letter.
Any employee who leaves employment is entitled to pay for annual leave earned but not yet taken during that calendar year. Employees are considered to have earned one-twelfth ( 1 ⁄ 12 ) of annual leave for every month worked. Employees who worked more than 15 calendar days in a given month are considered to have worked the entire month for purposes of calculating unused annual leave.
Workers’ Compensation
Workers’ compensation covers all necessary care resulting from work-related illnesses or injuries. Workers also receive 100% of their regular earnings for the first year of incapacity. Thereafter, employees receive 85.6% of their earnings for total disability and a reduced amount for partial disability based on the degree of disability. Workers’ compensation also provides for survivor’s benefits and funeral expenses.
Recordkeeping
The employer must keep a record of all extensions of the normal hours of work and overtime worked on Sundays, public holidays or at night, as well as the wages paid, plus leave records for all employees. The records must be made available on request of the agents of the Inspectorate of Labor and Mines. The Labor Code does not set forth a requirement for the length of time such records must be kept.
FOREIGN WORKERS
Foreign workers are entitled to the same rights as Luxembourg citizens and are generally covered by the same tax and workplace laws.
Visas: Requirements for foreign workers depend on the country of origin.
Citizens of the European Union, European Economic Area (Norway, Iceland and Liechtenstein) and Switzerland: Luxembourg refers to citizens of these countries as Union citizens. A Union citizen has a right to reside in Luxembourg for more than three months if he or she:
- is either a wage-earning worker or an independent worker;
- has sufficient resources and health insurance so that the Union citizen and his or her family members will not unreasonably burden the social assistance system; or
- is a registered full-time student in a recognized educational institution in Luxembourg, or is receiving professional training in Luxembourg, and has sufficient resources and health insurance so that the Union citizen and his or her family members do not unreasonably burden the social assistance system.
Upon arrival in Luxembourg, the Union citizen and his or her family members must contact the administration communale in their municipality to apply for issuance of a registration attestation (attestation d’enregistrement). Union citizens do not need a work permit to work in Luxembourg, except for citizens of Romania and Bulgaria, who are required to obtain a work permit for their first full year of work in Luxembourg. After living in Luxembourg for five years, Union citizens are entitled to become permanent residents by submitting a permanent residence attestation (attestation de séjour permanent) to the Immigration Directorate of the Ministry of Foreign Affairs.
Citizens of other countries (third-country nationals): Persons from other countries (referred to as third-country nationals) who wish to live in Luxembourg for more than three months must follow a two-step process. First, before arriving in Luxembourg, he or she must apply to the Immigration Directorate of the Ministry of Foreign Affairs for temporary authorization to stay (autorisation de sejour temporaire). Then, after arriving in Luxembourg, he or she must apply for issuance of a residence permit (titre de sejour).
Third-country national applications for temporary authorization to stay, which must be made and granted before arrival in Luxembourg, must be made in one of the following categories:
- Salaried worker. Before hiring a third-country national, the employer first notify ADEM, the Luxembourg Employment Agency (Agence pour le développement de l’emploi), that the job is vacant, in order to allow ADEM to determine if the job can be filled with a local worker or a worker from the European labor market. If ADEM fails to identify a qualified candidate within three weeks, the employer may obtain a certificate from ADEM authorizing the employer to hire the candidate of its choice. The employer must provide the original certificate and a copy of the signed employment contract to the third-country national for enclosure in the application for authorization to stay. The application also must include a certified copy of the third-country national’s valid passport, birth certificate, recent extract from his or her police record or affidavit issued in the applicant’s home country, a curriculum vitae, a certified copy of the applicant’s diplomas or professional qualifications and a motivation letter to support the application. All documents that are not in Luxembourgish, German, French, or English must be accompanied by a translation. If granted, the authorization to stay for salaried workers is valid only for one profession in one sector for any employer, and this restriction remains in place for the first three years.
- Highly qualified worker (European blue card). Employers of “highly qualified” third-country nationals do not have to go through ADEM. A highly qualified worker is defined as a person with an employment contract for one year or more for a highly qualified job, who has documented professional qualifications required for the activity or the sector identified in the work contract and who satisfies the requirements for the specific job at issue and whose salary is at least 1.5 times the average gross annual salary. The application must be accompanied by the same documents required for salaried workers (with the exception of the ADEM certificate) and if granted, is valid only for one profession in one sector for any employer for the first two years (as opposed to three years for salaried workers).
- Researcher. A third-country national who wishes to reside in Luxembourg for more than three months to conduct a research project must submit an application for authorization to stay as a researcher, which must be accompanied by a hosting agreement and financial statement of support signed by a recognized research organization and the same documents required for salaried workers (with the exception of the ADEM certificate).
- Transferred worker. If an employer wishes to transfer a third-country national worker to Luxembourg, the hosting employer must submit a transferred worker application that includes the address and duration of the transfer, a certified copy of the worker’s open-ended contract dated and signed by the worker and transferring employer, a certified copy of the work contract or transfer agreement between the worker and the hosting employer, a certified copy of the worker’s valid passport and a copy of the birth certificate, recent extract from his or her police record or an affidavit issued in the worker’s home country, a curriculum vitae and a certificate of affiliation to social security in the worker’s home country.
- Other types of applications are available for posted workers, independent workers, family members of a third-country national, students, unpaid trainees, athletes or instructors, volunteers, pupils, cross-border workers, and authorizations to stay for private reasons.
If the application is granted, the temporary authorization to stay is valid for 90 days, during which time the third-country national must either apply for a visa to enter the Schengen area, or, if he or she does not require a visa, enter Luxembourg and declare his or her arrival in the municipality where he or she intends to reside.
To obtain a residence permit, a third-country national with temporary authorization to stay must, within three days after arriving in Luxembourg, submit a declaration of arrival (declaration d’arrive) to the administration communale in the municipality where he or she has chosen to reside. He or she will be given a copy of the declaration as a receipt, which, in conjunction with the temporary authorization to stay, demonstrates lawful residence until the resident permit is issued. Then, he or she must have a medical examination by a doctor licensed in Luxembourg and take a tuberculosis test at the Ligue Medico-Sociale ( www.ligue.lu ). The test results are sent to the Ministry of Health, who will inform the Immigration Directorate if the third-country national is medically authorized to receive a residence permit. The last step is for the third-country national to apply to the Immigration Directorate for a residence permit and, after the Immigration Directorate approves the application and the medical test results, to appear personally before the Immigration Directorate with a valid passport and to be photographed and fingerprinted. Once the third-country national receives the residence permit, he or she must return to the administration communale to receive a residence certificate (certificat de residence).
After the third-country national resides in Luxembourg for an uninterrupted period of five years, he or she may apply for the status of long-term resident.
Taxes: Foreign workers are subject to Luxembourg income tax only on income arising from Luxembourg sources and generally are subject to the same tax laws as Luxembourg citizens.
A special tax regime exists for certain foreign highly skilled workers who are recruited to work temporarily in Luxembourg and who entered Luxembourg on or after Jan. 1, 2011. Qualifying workers who receive specified benefits from their employers relating solely to their relocation to Luxembourg (such as moving costs, certain Luxembourg housing costs, children’s school fees, certain travel expenses, differential between employee’s Luxembourg taxes and home country taxes) do not include such benefits in taxable income and employers who provide such benefits may deduct them as operating costs. To qualify for the special tax regime, the employee must:
- make a significant economic contribution or contribute to the creation of new high added value economic activities in Luxembourg;
- have extensive specialization (e.g., a higher degree plus extensive technical knowledge, or at least five years specialized experience) in an area in which Luxembourg has experienced difficulty recruiting workers, and primarily work in that area while in Luxembourg;
- become a resident of Luxembourg for tax purposes and must not have been subject to Luxembourg income tax during the previous five years;
- receive a monthly wage that is equal to or greater than the maximum social security contribution wage;
- not replace a Luxembourg employee; and
- share his or her knowledge with employees of the Luxembourg employer in order to promote activities in Luxembourg.
If the employee is transferred from a company outside Luxembourg that is related to the Luxembourg transferee company, the employee must have at least five years experience within the international group or have at least five years experience in the specialized work area, and must have the right to return to employment with the transferring company after completion of the Luxembourg assignment.
The employer must employ at least 20 employees in Luxembourg. If the employer has been in business for 10 years or more, the number of highly skilled employees subject to the special tax regime may not exceed 10% of the total full time staff.
In order to obtain the benefits of the special tax regime, the employer must submit an application to the local withholding tax office within two months after the highly skilled employee begins work in Luxembourg, and thereafter, no later than January 31 of each year, submit a list of all employees subject to the regime. The special tax treatment applies for the duration of the employee’s Luxembourg assignment, up to a maximum of five years.
Effective since Jan. 1, 2018, nonresident foreign workers may treated as Luxembourg residents for tax purposes if their foreign income does not exceed €13,000 regardless of whether 90% or more of the foreign worker’s worldwide income is taxable in Luxembourg, the budget said. Income of nonresident foreign workers employed by residents of Luxembourg but subject to taxation by foreign tax authorities under applicable treaties is to be considered as taxable Luxembourg income for the computation of the 90% threshold for a maximum of 50 working days.
For married non-resident couples taxed jointly, only one spouse is required to fulfill the new 90% requirement. This is to allow married couples the possibility to opt for the most advantageous taxation method for their individual circumstances. Currently, married nonresident taxpayers may benefit from a lower tax class if more than 50% of their collective income is taxable in Luxembourg. All resident and nonresident employees in Luxembourg are generally subject to income tax, but resident and nonresident employees may qualify for different rates and benefits. Employees are are currently considered to be Luxembourg residents for tax purposes if their domicile or habitual place of residence in Luxembourg for more than six consecutive months, disregarding short periods away from the country.
Wages/Payments: No special requirements apply to payment of wages to foreign workers.
WORKING IN THE UNITED STATES
Foreign workers from Luxembourg must meet general visa requirements and be certified to be employed in the U.S. General visa requirements for the U.S. are included in the separate
Luxembourg is eligible for the visa waiver program for business visitors, which allows Luxembourg citizens to travel to the U.S. for 90 days or less for business-specific purposes without having to obtain a B-1 business visa. Stays longer than 90 days will require a visa. Individuals may return to the U.S. under the visa waiver program if a “reasonable length of time” has passed. The determination for a reasonable length of time is at the discretion of the Department of Homeland Security.
U.S. employers also must check the names of all new-hires and employees against the Specially Designated Nationals and Blocked Persons List, administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). Because OFAC prohibits financial transactions with individuals on the list, employers cannot employ them and may face fines for failing to comply.
For tax purposes, Luxembourg citizens are subject to U.S. employment-based taxation on income earned in the U.S. unless they can claim an exemption under certain tax treaty provisions or they work under specific visa types that exempt earnings from taxes. Luxembourg has both a tax treaty and a social tax totalization agreement with the U.S.
State and local taxation of Luxembourg workers also can apply, although some states within the U.S. recognize international tax treaties that can eliminate that income tax liability for foreign workers.
The U.S. labor laws apply to all workers employed and providing services in the country.
Work eligibility as an employee is contingent upon Department of Homeland Security and Labor Department approval and the employee receiving a U.S. Social Security number from the Social Security Administration.
Tax Residency: In general, employees working in the U.S. on a temporary basis are considered nonresidents for tax purposes unless they qualify for resident status. Employees can be granted permanent resident status through the so-called green card test or if they meet the substantial presence test under the U.S. tax code. More information on these requirements is in the
Permanent residents are subject to U.S. tax requirements the same as U.S. citizens and are taxed under the U.S. system on their worldwide earnings.
Income Taxes: Generally, nonresidents in the U.S. who are from Luxembourg and are working in the U.S. are subject to U.S. taxes based on their U.S.-sourced income. Income is taxed differently based on whether it is categorized as wage income or nonwage income, which includes interest and dividends.
A Form W-4, Employee’s Withholding Certificate, must be filed by each employee with their employer. All nonresidents in Luxembourg who are from the U.K. and are working in the U.S. must claim “single” in Step 1c, regardless of marital status; write “Nonresident Alien” or “NRA” in the space under Step 4c of the form; and may not claim “exempt” in the space under Step 4c.
Nonresident alien employees may adjust withholding using Step 2b or 2c of the Form W-4; certain employees also may be able to use Steps 3, 4a, or 4b. More information about Form W-4 requirements for nonresident alien employees is available in the
Although the versions of Form W-4 issued in 2020 or later significantly differ from the versions issued in 2019 or earlier, nonresident employees that filed a valid version of Form W-4 from 2019 or earlier with their employer do not need to file another Form W-4 with the employer unless they need to implement a change for their withholding. On Forms W-4 issued in 2019 or earlier, nonresident alien employees were required to check the “single” box on line 3, regardless of marital status; write “Nonresident Alien” or “NRA” above the dotted line on line 6; and were not permitted to claim “exempt” on line 7 of the form.
An additional amount is added to a nonresident alien employee’s wages for calculating federal income tax withholding, with the amount based on pay period frequency and the date of the employee’s most recently filed Form W-4. The table of additional amounts applicable to Forms W-4 from 2020 or later and the table applicable to Forms W-4 issued before 2020 are available in the
Nonwage income and self-employed foreign workers can be subject to income tax withholding at a flat rate of 30%.
Additionally, foreign workers may be taxed differently based on the specific type of visa they hold.
Tax treaties: Luxembourg and the U.S. have a tax treaty with provisions addressing host country taxation of the nonresident workers. A summary of those benefits is listed in the Tax Treaty Exemption Comparison Chart. To claim the treaty benefit, the nonresident must file Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, with the employer.
Students, trainees and teachers in particular must include a statement with Form 8233 to claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. This statement affirms that the student, trainee, teacher or researcher is temporarily in the U.S. for purposes of studying or has accepted an invitation by the U.S. government (or by a political subdivision or local authority) for the purpose of teaching or engaging in research for a period not expected to exceed two years for teachers and students by a university or other recognized educational institution in the U.S. It also must affirm that the individual will receive compensation for services performed in the U.S. There is no limit is placed on teacher or student compensation for Luxembourg residents.
Examples of the statements necessary to claim a treaty exemption from U.S. taxes are included in Internal Revenue Service Publication 519, U.S. Tax Guide for Aliens.
Social Taxes: Most foreign workers are subject to paying into the U.S. Social Security system. Foreign nationals who are exempt from paying income tax and who do not have the eligibility to receive a social security number may not be required to pay social taxes. Foreign workers contributing to Social Security for a certain time period may be eligible to receive benefits.
Generally, foreign workers in the U.S. that have specific visas as exchange visitors or students or who are temporarily in the U.S. for agricultural work are not subject to social taxes on income that is obtained from the purpose in which they originally entered the U.S.
Totalization Agreements: Social Security totalization agreements can allow foreign workers and U.S. nationals working abroad to avoid paying into two social security systems while being subjected to losing benefits for their home country system. Under totalization agreements, generally, foreign workers will only pay into one of the social security systems, either the home or the foreign system, but not both. Foreign nationals, utilizing a totalization agreement, also can count years of contributions paid to different social security systems to all of the systems they have contributed to in order to be eligible for benefits in one country.
Luxembourg and the U.S. have entered into a totalization agreement and a summary of those provisions is included in
Wage Payment: Under certain visas for certain types of employment, employers are required to pay foreign workers the higher of either the prevailing wage or the actual wage that is paid to U.S. workers that have similar skills and qualifications.
There are no particular requirements that employees be paid in U.S. dollars.
TREATY ARRANGEMENTS
Luxembourg has entered into more than 70 income tax treaties, including an income tax treaty with the United States. Luxembourg also has more than 30 totalization agreements for social tax coverage purposes, including an agreement with the United States.
Luxembourg’s tax treaties are available in
RESOURCES
All resources are in English unless otherwise noted.
General
Government of Luxembourg (English, French, German, and Luxembourgish)
Guichet.lu (English, French, and German)
Constitution of Luxembourg (French)
U.S. State Department: U.S. Relations With Luxembourg
U.S. Central Intelligence Agency:
- The World Factbook: Luxembourg
- The World Factbook: Languages
Currency Details
Unicode Consortium: Currency Symbols
International Organization for Standardization: Currency Codes - ISO 4217
United Nations: United Nations Terminology Database: Luxembourg
Taxes
Administration des contributions directes (ACD): Tax and Withholding Tables (French)
Centre commun de la sécurité sociale (CCSS) (French)
Centre commun de la sécurité sociale: Social Security Contribution Rates (French)
Guichet.lu: The Employee’s Tax Card
Guichet.lu: Employer Registration
Guichet.lu: Payment of Social Contributions for Employees
Guichet.lu: Registering an Employee for Social Security
Guichet.lu: Withholding Tax on Salaries
Law of Dec. 19, 2020, on the Budget of State Revenue and Expenditure for the Financial Year 2021 (French)
ACD Circular No. 115/12 of Feb. 11, 2021 (French)
FAQ Regarding the Participatory Bonus and its Exemption (French)
ACD Circular No. 115/5 of Oct. 21, 2021 (French)
Guichet.lu: Human Resources
Luxembourg Social Security Code (French)
Ministry of Social Security (French)
Luxembourg Chamber of Employees:
- Tax System (French)
- Citizens
(French)
Compensation and Benefits
EURES: The European Job Mobility Portal, Living and Working Conditions: Luxembourg
Guichet.lu: Social Minimum Wage and Indexation of Salaries
Labor Code (French)
Ministry of Labour and Employment
National Pension Insurance Fund (French)
Inspectorate of Labour and Mines (French)
Foreign Workers
Luxembourg.lu: Foreign Workers
Luxembourg.lu: Migrating to Luxembourg
Guichet.lu: Immigration
American Chamber of Commerce in Luxembourg: Doing Business in Luxembourg
Working in the United States
U.S. Department of Labor:
- Foreign Labor Certification:
- Hiring Foreign Workers
U.S. Internal Revenue Service:
- IRS Notice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens
- IRS Publication 15, Circular E, Employer’s Tax Guide
- IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties
Treaty Arrangements