Insights
How to Hire Employees in Luxembourg
Insights · By Chen ChunJie · Published 8 November 2026
Luxembourg has high salaries, moderate employer costs and a workforce that is close to half cross-border. It also bans lending staff to another company outside authorised cases. This guide covers the hiring routes, contracts, pay, leave and notice.
Last reviewed in November 2026 against the Labour Code, the 2026 social minimum wage and index tranche, CCSS rates and Guichet.lu guidance. Rates change, so we confirm them for each engagement.
Ways to get people working in Luxembourg
| Route | Who employs and directs the person | Best for |
|---|---|---|
| Your own Luxembourg company | Your company or branch | Long-term teams |
| Defined service from a Luxembourg employer | The service provider, such as our Local Team | Work you can define by results |
| Temporary agency | A licensed agency, for temporary tasks | Short missions of up to 12 months |
| Self-employed contractor | No employer; a services contract | Projects by genuinely independent professionals |
The ban on lending staff
Outside temporary agency work and lending authorised by the Minister of Labour, making staff available to another company is banned. Agency work is limited to temporary tasks set out in the Labour Code.
No Luxembourg company yet? We can take on a defined service, with our Local Team employing and directing the people who deliver it. See Employer of Record in Luxembourg.
Contracts and pay
The contract must be written. Probation of two weeks to six months must be agreed in writing. The social minimum wage is EUR 2,771.33 a month for unqualified workers in 2026, and qualified workers get 20% more. Salaries rise automatically with each index tranche. See our Luxembourg payroll and tax guide.
Working time and leave
| Rule | What applies |
|---|---|
| Hours | 40 a week, 8 a day |
| Overtime | Paid at 140% or time off at 1.5 hours per hour |
| Annual leave | 26 working days |
| Public holidays | 11 a year |
Ending employment
The employer needs a genuine and serious reason. Notice is two months under five years of service, four months up to ten and six months after that. Severance starts at one month’s pay after five years and rises to twelve after thirty.
Cross-border workers and non-EU nationals
Staff living in France, Belgium or Germany stay insured in Luxembourg if they work mostly there, and home-working days are limited for tax. Non-EU nationals need a permit first. See Expat Employment in Luxembourg.
FAQ: hiring employees in Luxembourg
What is the minimum wage?
EUR 2,771.33 a month for unqualified workers in 2026.
How long can probation last?
Up to six months in most cases.
Is a 13th month required?
No, unless the contract or a collective agreement says so.
Need people working in Luxembourg?
We take on a defined service, and our Local Team employs and directs the people who deliver it, with payroll, social security and the paperwork handled.
Related
How we get work done in Luxembourg.
Contracts, leave, notice and more.