Contractors in Luxembourg can be set up in an Employed solution.
Contractors should be engaged in Luxembourg as employees with income fully processed through the local payroll. This is the most compliant and preferred form of engagement in country.
Tax year – The tax year is the calendar year for individuals
Immigration – EU nationals can work in Luxembourg without any restrictions. UK and Non-EU nationals would require a work permit. We do not currently have a work permit solution for Luxembourg and so can only assist EU nationals.
Registration – Workr will submit a registration form to the relevant social security office in Luxembourg.
Contract – A fixed-term contract can be used in Luxembourg. Two month’s notice during the first 5 years of the engagement is required. This increases to 4 months for 5-10 years service and 6 months for over 10 years service.
Social security – Employers social security contributions range from 12.4%-14.64%. Payments are made to 5 different social security departments.
Employees social security contributions are 12.45% and are made to 3 different social security departments.
Tax – Luxembourg tax ranges from 0-42%, there are 23 different tax brackets depending on how much you earn.
There is also an additional solidarity tax of 7-9%.
Benefits – Holidays: statutory annual entitlement of 26 working days.
11 public holidays per year.
13th month pay, normally paid at the end of the year
Sick leave: paid sick leave after 3 days, a medical certificate is required.
Maternity and Paternity leave paid for by social insurance as long as mandatory health insurance has been paid for the previous 6 months.