Employer of record in Luxembourg
32 sourced figures on hiring in Luxembourg, drawn from 12 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 | Manual / editor, 2026-06-01 |
|---|---|---|
| Employer social security | 13.65% | OECD |
| Total tax wedge | 40.16% | OECD |
| Corporate tax | 21.73% | OECD |
| Average income tax | 19.69% | OECD |
| Notice period | 17.3 weeks | World Bank Employing Workers / B-READY, 2019-05-01 |
| Severance | 4.3 weeks | World Bank Employing Workers / B-READY, 2019-05-01 |
| Annual leave | 26 days | National government, 2026-01-01 |
As of 2026-08-30. 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
Employers in Luxembourg face meaningful payroll costs: the employer social security rate stands at 13.65%, contributing to a total tax wedge of 40.16%, while the top personal income tax rate reaches 42%. The statutory minimum wage is 2771.33 per month, set against an average monthly wage of EUR 7865, which signals a workforce concentrated well above the wage floor. The standard working week is set at 40 hours, though actual weekly hours worked average 36, and employees log 1468 hours per year in total. Hiring costs are one side of the equation; exit costs matter too, with a statutory notice period of 17.3 weeks and statutory severance of 4.3 weeks. Temporary contracts carry a higher employment protection score of 3.56 on a 0-6 scale compared to 2.50 for regular contracts, meaning short-term arrangements are not necessarily easier to unwind. Employers must also budget for 20 weeks of maternity leave, 27.7 weeks of paternity leave, and 26 weeks of parental leave, alongside 11 public holidays per year. Collective bargaining covers 57.3% of the workforce, so sector-level agreements will shape actual employment terms for the majority of hires.
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 12 sources, last refreshed 2026-08-30. 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
Figures refreshed as newer, more current sources replaced older ones
- Minimum wageJun 1, 2026
Now 2771.33, from 2682. Source: Manual / editor (was OECD).
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.