Employer of record in Luxembourg
32 sourced figures on hiring in Luxembourg, drawn from 7 sources and normalized for comparison: statutory rules, employer cost and exactly what an EOR covers locally. Every figure is dated.
Hiring here: moderately complex, on the pricier side, and fast to hire via EOR.
Employer of record in Luxembourg: the statutory snapshot
The headline employer costs, pay floor and worker protections for hiring in Luxembourg through an employer of record, each figure sourced and dated. 36 EOR providers cover Luxembourg.
| Minimum wage | 2,771/mo | National government, 2026-06-01 |
|---|---|---|
| Employer social security | 13.65% | OECD |
| Tax and mandatory contributions wedgeOECD, taxes plus non-tax compulsory payments such as mandatory private pension and health contributions | 40.2% | OECD |
| Corporate tax | 17% | National government, 2026-09-12 |
| Average income tax | 19.69% | OECD |
| Notice period | 17.3 weeks | National government, 2026-09-12 |
| Severance | 4.3 weeks | National government, 2026-09-12 |
| Annual leave (minimum, once eligible) | 26 | National government, 2026-09-12 |
As of 2026-10-16. Each value is the winning figure from primary and harmonized sources, resolved by a documented priority chain. Full record with provenance below.
Reading the data
What the figures say about Luxembourg
The statutory minimum wage in Luxembourg is 2771 per month, against an average monthly wage of EUR 8097 for employees. Employers pay a social security rate of 13.65%, and employees pay 12.31%. The tax and mandatory contributions wedge stands at 40.2%, which includes mandatory pension and health contributions. On the exit side, statutory severance is 4.3 weeks and the statutory notice period is 17.3 weeks. The employment protection index scores 2.54 on a 0-6 scale, with regular contracts at 2.50 and temporary contracts at 2.81. Leave entitlements include 26 days of statutory annual leave, 11 public holidays, 20 weeks of maternity leave and 2 weeks of paternity leave, and there is no 13th salary.
Where to start
Three ways to hire in Luxembourg
You are the employer. Lowest per head cost at scale, months to establish.
You direct the work, the provider's local entity is the employer on paper. Compliant in days.
See the 36 providers below ↓Not your employee. Fastest and cheapest, with misclassification exposure.
The full record
Every figure behind the snapshot
Not a guide, a record: 32 figures for Luxembourg from 7 sources, last refreshed 2026-10-16. Each value carries its source and the date it was pulled. Hover any provenance tag for the full chain.
Average monthly earnings in Luxembourg by occupation (2025)
Gross monthly earnings of employees per ISCO-08 major occupation group, in EUR — the official ILOSTAT survey figures, not estimates. Use them to sanity-check an offer before an EOR quote turns it into total employer cost.
| Occupation group | Monthly (EUR) | ≈ USD |
|---|---|---|
| All occupations | 8,097 | $9,150 |
| Managers · ISCO 1 | 12,914 | $14,593 |
| Professionals · ISCO 2 | 10,280 | $11,617 |
| Technicians and associate professionals · ISCO 3 | 8,417 | $9,512 |
| Clerical support workers · ISCO 4 | 7,239 | $8,180 |
| Service and sales workers · ISCO 5 | 4,640 | $5,243 |
| Skilled agricultural, forestry and fishery workers · ISCO 6 | 4,101 | $4,634 |
| Craft and related trades workers · ISCO 7 | 5,023 | $5,676 |
| Plant and machine operators and assemblers · ISCO 8 | 4,797 | $5,420 |
| Elementary occupations · ISCO 9 | 3,577 | $4,042 |
Source: ILOSTAT (EAR_EMTA, employees, both sexes), reference year 2025. Survey earnings differ from statutory minimums above.
What the average salary takes home in Luxembourg
The employee keeps an estimated 68% of gross at the average wage. For an employer, this is the gap between the offer you quote and what your hire actually receives.
Illustration at the ILOSTAT average wage using statutory rates (OECD; OECD) applied to gross pay. Individual allowances, deductions and regional rates vary — not tax advice.
// recent updates
What changed in Luxembourg
Checked against official sources on 16 October 2026
No rule changes recorded since we began logging them.
Corrections to our data
- Paternity leaveCorrected 11 October 2026
Now 2 weeks, was 1.4 weeks. 10 working days = 80 hours for a 40-h week (splittable), i.e. 2 working weeks; days/7 basis (1.4) understates it
Source →
Every figure is sourced and dated. How we verify the data →
The differentiator
What an EOR handles in Luxembourg
An EOR removes the entity and the payroll machinery. It does not remove your obligations as the people manager.
Provider × country
Who can employ in Luxembourg
36 providers operate an EOR in Luxembourg, ranked by Select Score.
Comparing EOR options for Luxembourg?
Run a side-by-side on the providers that actually operate there.