Hire in Luxembourg

Luxembourg PEO &

Employer of Record

Hire & manage teams remotely in Luxembourg without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

English, Luxembourgish

Salary Currency

Euro (EUR)

Payroll tax

12.22% - 15.33%

Payroll Cycle


Time zone

UTC +2

Capital city


Hire Employees in Luxembourg

NNRoad provides employer of record (EOR)professional employment organization (PEO) services to ensure that your business in Luxembourg complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

The NNRoad Advantage ☺

Pay as you go

No set-up or overhead costs to global expansion.

Global account manager

One point of contact for all of our 50+ serviced countries and regions.


Ensured compliant contracts and operations.

Fast Onboarding

Start working with your remote employees/contractors within a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.


Access your payroll reports and employee pay stubs on our portal.

Employer of Record in Luxembourg

Employer of Record (EOR) services are for companies who do not have a legal entity in Luxembourg, but who want to hire localy. Employment and full liability are outsourced to NNRoad.


Candidate Selection

You interviews & select the candidates you want to hire in Luxembourg.


Employee Onboarding

We sign a local labor contract with your employees based in Luxembourg.


Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Luxembourg.


Payroll Reporting

See all payroll reports on our platform & focus on your business in Luxembourg.

Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

On-boarding and off-boarding employees following labor law practice.

Complete payroll solution and benefit administration

Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.

Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.

Payment management (Invoicing customers/clients and vendor payments).

Work VISA application assistance, if needed.

Local individual income tax reporting.

Payroll & PEO in Luxembourg

Professional Employment Organization (PEO) services are for companies who have a legal entity in Luxembourg, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.


Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Luxembourg.


Payroll Reporting

See all payroll reports on our platform & focus on your business in Luxembourg.

Registering the necessary company and personnel information for payroll calculation in the payroll software and system

Monthly Payroll Processing

Year-End Adjustment and Annual Declaration

PEO in Luxembourg and employer of record

Taxes & Payroll in Luxembourg

Employee Income Taxes:

Individual income tax rates in Luxembourg are based on progressive tax brackets.

Individual income taxes in Luxembourg are progressive, with rates ranging from 0% to 42%. Taxable income includes wages, salaries, pensions, and other sources of income. Certain deductions and allowances, such as for social security contributions and dependent children, can reduce taxable income.

Non-residents are taxed only on income earned in Luxembourg. Tax returns must be filed annually by March 31st of the following year, with payment due by July 31st. The tax administration in Luxembourg is known for being efficient and taxpayer-friendly, and there are various online tools and resources available to help individuals understand and comply with their tax obligations.

Income tax in Luxembourg is also based on the individual’s personal situation i.e. the family status and a tax class is granted for this purpose as follows:

Class 1- for single person.
Class 1a- for single parent with dependent children and person of age of at least 65 on 1st of January.
Class 2- for married person, widowed taxpayer (for first three years after the death of spouse) civil partners.

Tax Brackets


Sample Calculation


Employer Costs in Luxembourg

Employer Contribution

Employee Contribution

Social Security

Benefits & Insurance in Luxembourg

Pension Fund

Healthcare Insurance

public holidays in Luxembourg

Working Hours in Luxembourg

Working Hours Per Week

Working hours and overtime in Luxembourg are governed by legislation, with a standard workweek set at 40 hours. However, various collective labor agreements establish shorter working hours in certain industries, and specific regulations may apply to different sectors. Overtime work is generally limited to a maximum of 10 hours per week or 48 hours per month, and employees are entitled to receive additional compensation for such work.

According to the Labor Code of Luxembourg, the rate of overtime pay varies based on the day and time of the work, with higher rates applicable for work performed on Sundays and public holidays. Employers are obliged to maintain records of employees’ working hours and overtime, and employees have the right to access and review these records through the Luxembourg Collective Agreement Database (CCTs). Additionally, employers must ensure that employees receive adequate rest periods and breaks during the workday, and individuals may be eligible for extra time off for work conducted outside normal working hours.

In Luxembourg, an employee is legally permitted to work up to 8 hours per day for a full-time job and a maximum of 40 hours per week according to the European Commission – Employment, Social Affairs & Inclusion. The law stipulates that the daily working time must not exceed 10 hours, nor should the weekly working time surpass 48 hours. These regulations aim to safeguard employee well-being and promote a healthy work-life balance.


Termination Laws in Luxembourg


Notice Period

Employment Contract in Luxembourg

Employment Contract

Probation Period

paid leave in Luxembourg

Types of Leaves in Luxembourg

Annual Leave

Sick Leave

Maternity Leave

Paternity Leave

Public Holidays in Luxembourg

Public Holidays