• EU, EEA and Swiss Citizens: Can work in Luxembourg without a work permit.
• Third-Country Nationals: Generally require authorisation to stay and a residence permit to work in Luxembourg.
• Employer Requirements: Employers must declare vacancies to the National Employment Agency (ADEM).
• Recruitment of Foreign Nationals: If no suitable candidate is identified within three weeks, employers may request permission to recruit a third-country national.
• Visa Requirements: Employees must obtain temporary authorisation to stay before entering Luxembourg for long-term employment. A Type D visa may also be required, depending on nationality.
• Registration: After arrival, employees must complete local registration and residence permit formalities.

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• Payroll Cycle: Salaries are generally paid monthly.
• PAYE System: Employers must calculate and withhold personal income tax from employee salaries and remit it to the Luxembourg Inland Revenue (Administration des contributions directes).
• Social Security Registration: Employers must register employees with the Joint Social Security Centre (CCSS) within eight days of their start date.
• Social Security Contributions: Contributions are shared between employers and employees.

Employer Contributions:

• Pension Insurance: 8.50%
• Health and Maternity Insurance: 3.30%
• Accident Insurance: 0.65% (subject to a bonus-malus adjustment)
• Occupational Health: 0.14%
• Employers' Mutual Insurance: 0.23%–2.66%, depending on the employer's contribution class.

Employee Contributions:

• Pension Insurance: 8.50%
• Health and Maternity Insurance: 3.30%
• Dependency Insurance: 1.40%

Social security contributions for health, pension and accident insurance are generally calculated up to five times the monthly minimum social wage. Dependency insurance is calculated separately and is not subject to the same earnings ceiling.

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• Contract Types: Permanent (CDI) and fixed-term (CDD) contracts are recognised. Fixed-term contracts are permitted for specific temporary work and may generally be renewed twice, up to a maximum total duration of 24 months.
• Written Contracts: Employment contracts should be provided in writing before the employee starts work and must include details such as salary, working hours, job duties and leave entitlement.
• Probation Period: Must be agreed in writing. The maximum is generally three months for employees without a recognised vocational qualification, six months for qualified employees and up to 12 months for employees earning at least the statutory salary threshold.
• Working Hours: Standard working hours are 40 hours per week, or eight hours per day. Maximum working time, including overtime, is generally 10 hours per day and 48 hours per week.
• Overtime: Normally compensated with 1.5 hours of paid time off for every additional hour worked. Where time off is not possible, overtime must be paid at 140% of the normal hourly rate.
• Termination: Employers must provide valid reasons and follow the applicable notice procedures. Notice periods range from two to six months, depending on length of service.
• Severance: Employees dismissed with notice after at least five years of service are generally entitled to severance pay, calculated according to their length of service. Certain exceptions and alternative arrangements apply to smaller employers.

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• Social Security: Luxembourg has a mandatory social security system covering healthcare, pensions, maternity and dependency insurance, unemployment and accident protection.
• Annual Leave: At least 26 working days of paid annual leave per year, in addition to 11 public holidays.
• Sick Leave: Employees are entitled to continued full salary during illness until the end of the month in which their 77th day of incapacity occurs within an 18-month reference period. The National Health Fund (CNS) takes over payments thereafter, subject to eligibility.
• Maternity Leave: 20 weeks in total, consisting of eight weeks before childbirth and 12 weeks after childbirth. Maternity benefits are generally paid by the CNS.
• Paternity Leave: 10 working days of paid leave following the birth or adoption of a child. The State reimburses the employer for the statutory portion.
• Parental Leave: Eligible parents may take four or six months of full-time parental leave, with part-time and split arrangements also available under certain conditions.
• Public Holidays: 11 paid public holidays per year.
• Additional Benefits: Employers may also provide meal vouchers, supplementary health insurance, pension plans and transport allowances.

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