Employer of Record Luxembourg
Bring people onto a Luxembourg payroll without registering a company of your own. Our registration to employ here is already in place, so the contract, the payroll, the tax withheld under the employee tax card and the CCSS filings all run through us from day one.
Book a DemoOur EOR Portal
A simple platform sitting under a personal service
Under that personal service runs a plain, useful platform. New starters, payslips and the month-to-month admin all sit in it together, so nothing drifts off into a forgotten inbox.
- Watch onboarding move along and reach documents without emailing for them
- Release the monthly run and pull down payslips
- Enter leave, pay changes and amendments to the contract
- Keep records in the form the CCSS and the tax office expect
Why EOR Luxembourg?
What brings international teams to us for Luxembourg
We are registered to employ in Luxembourg, which means your hire goes onto a compliant Luxembourg payroll without you registering a company first. You get people who work on Luxembourg payroll every day and know how it behaves, including what happens to your costs when the wage index moves.
We become the legal employer, run the payroll and handle the filings. That covers the declaration to the Centre commun de la sécurité sociale before the first day, the monthly contribution return, the tax withheld under the employee tax card, and the paperwork when someone leaves.
Employment Costs
What does it cost to employ someone in Luxembourg?
The salary is not the cost. Here is what an employer in Luxembourg actually pays, on the parameters in force from 1 June 2026.
Employer social security
An employer in Luxembourg pays about 13.29% of gross pay in social security on top of the salary. That is 8.50% pension, 2.80% healthcare, 0.25% cash sickness benefit, 0.65% accident insurance at the neutral bonus-malus factor, 0.14% occupational health, and 0.95% for the Mutualité des employeurs, which is the class every new employer starts in. The rate moves between roughly 12.5% and 15.3% depending on your accident record and absence rate. Most branches stop at the contribution ceiling of €13,856.63 a month, or €166,279.56 a year.
Employee deductions
The employee’s net pay is what remains once two deductions have been taken from the gross:
- Income tax is withheld at source against the employee tax card. The 2026 scale runs in 23 bands and reaches 42% above €234,870, and the tax due carries a 7% solidarity surcharge for most employees.
- Employee social security is 12.95% of gross pay: 8.50% pension, 2.80% healthcare, 0.25% cash sickness, and 1.40% for the long-term care contribution. That last one is the branch with no ceiling, and it is charged after an allowance of a quarter of the minimum wage.
Worked example
Worked example: a €90,000 salary
Your total cost
≈ €101,961
Salary plus 13.29% employer social security. €90,000 sits below the ceiling, so nothing is capped
Employee take-home
≈ €58,760
Net monthly pay works out around €4,897 after income tax and employee social security
That example assumes a single employee in tax class 1 resident in Luxembourg, accident insurance at the neutral factor, Mutualité class 2, and only the standard deductions. Take-home changes with tax class and family situation. Luxembourg pay is also index-linked, so every figure here moves when the next tranche triggers.
We work this out each month, pay the contributions to the CCSS within ten days of the period end, file the withholding return with the Administration des contributions directes, and issue the payslip. You see one invoice from us covering the salary, the statutory contributions, and our management fee.
The EOR process in Luxembourg
What happens when you employ someone in Luxembourg?
Some of this has to happen before the first day, and the rest repeats every month.
The employee has to be declared to the Centre commun de la sécurité sociale, and the declaration of entry is due within eight days. The written contract has to exist at the latest when the employee starts work, in two signed originals, setting out pay, hours, holiday, notice and the probation period.
We issue the contract once you give us the details. There is no statutory language requirement for a Luxembourg employment contract and English is valid, but a contract in a language the employee does not follow can be challenged, so we get that decision right up front. Filings themselves go in French or German, which the administration works in.
Next we declare the employee to the CCSS, request the tax card from the Administration des contributions directes, and set up payroll. Each month we work out the tax to withhold under the tax card, deduct the employee’s social security, pay the employer contributions to the CCSS within ten days of the period end, and file the withholding return with the Administration des contributions directes.
If the person you’re hiring is from outside the EU and needs the right to work in Luxembourg, we handle the work authorisation as the legal employer. The EU Blue Card salary threshold is €65,652 in 2026, and EU, EEA and Swiss nationals need no permit at all.
Work authorisation is not a given with every EOR. With it, candidates from outside the EU are open to you, and none of it depends on a company of your own.
Our Luxembourg employees work across software, engineering, retail, the not-for-profit world and more. How we employ them does not change with the sector; what tends to change is the contract detail and the benefits, often steered by whichever collective agreement applies.
Flexible Employment Contracts
Start a Luxembourg hire in days, not months
An entity takes months to stand up. A Luxembourg hire through us takes days, because the registration that normally holds things up is already done.
A simple easy portal
Every Luxembourg hire, their paperwork and the payroll to-do list live together.
Stress-free onboarding
The CCSS declaration and the contract are ours to sort; the role stays entirely with you.
Payroll that matches the filings
Run on time, with the withholding and contributions the CCSS and the tax office expect.
Predictable pricing
A fixed monthly fee per employee, with no share capital and no notary bill.
No local entity required
We hold the legal-employer role in Luxembourg while the work is directed by you.
Compliance covered
Contract terms, leave, monthly filings and the HR questions that come up.
One Dedicated Point of Contact
Good service comes from dealing with the same people each month
You get one contact who works on Luxembourg, across onboarding, payroll and the HR questions that come up. No call centre and no ticket queue.
Get in touchEOR vs. your own entity
Is a Luxembourg company of your own actually necessary?
Two paths are open. Either you incorporate in Luxembourg yourself, typically as a société à responsabilité limitée, or your people are employed through us on the registration we already hold.
Forming a Luxembourg company yourself
A SARL is formed by notarial deed and registered with the Registre de commerce et des sociétés. Share capital is €12,000, though a law of 18 May 2026 now lets you defer paying it in cash for up to twelve months.
You will also need a business permit from the Ministry of the Economy, VAT registration, and employer registration with the CCSS before anyone can be paid. Costs vary with the notary, so treat the range as an estimate rather than a quote.
- Yearly accounts lodged with the RCS
- Corporate tax, municipal business tax and VAT returns
- Running payroll under the Code du travail
- An accountant or outside payroll provider on retainer
- A standing compliance spend of several thousand each year
Using an employer of record
We are registered to employ in Luxembourg, so there is no company to form, no notarial deed, no share capital and no annual accounts on your side. We issue the employment contract and declare the employee to the CCSS. We run payroll and handle ongoing HR and compliance.
- No Luxembourg entity required
- Contract issued once we have the details
- Payroll, withholding and filings handled
- Nothing for you to hand to an accountant
- Single monthly invoice covers everything
Which path is right for you?
Use an EOR when…
You need someone working in weeks rather than months, or you do not want a business permit, share capital and an annual filing cycle sitting behind one or two hires. Speed and the absence of a compliance tail are the real arguments, and we would rather say so than pretend the fee always works out cheaper.
Your own company makes sense when…
You are building a larger permanent team, or you need a Luxembourg company for commercial reasons such as holding customer contracts locally. At a steady headcount an own entity can also work out cheaper per employee once it is running, which is worth modelling before you decide.
No fixed headcount marks the switch. It depends on how long you expect to be hiring in Luxembourg. We can talk it through with you either way, including when the answer is your own entity.
Employee Entitlements
Where your Luxembourg employees’ entitlements stand
Luxembourg protections are set out in the Code du travail and enforced by the Inspection du travail et des mines. These are the entitlements that most often catch out an employer hiring here for the first time.
Annual leave
The statutory minimum is 26 working days of paid leave a year. Leave accrues from the start of employment, and a collective agreement can improve on it. Employees with a recognised disability get six additional days.
Public holidays
Luxembourg has 11 public holidays. When one falls at the weekend the employee gets a compensatory day, to be taken within three months, and in 2026 four of the eleven fall at a weekend.
Sick leave
The employee tells you on the first day and produces a medical certificate by the third. The employer keeps paying full salary to the end of the month in which the employee reaches the 77th calendar day of incapacity within 18 rolling months, and the Caisse nationale de santé takes over after that. The Mutualité des employeurs reimburses the employer 80% of the continued pay, so the net cost is lower than it first looks. Dismissal is barred for the first 26 weeks of certified sickness.
Birth and childcare leave
Maternity leave runs to 20 weeks and is paid by the Caisse nationale de santé rather than by you. Paternity leave is 10 days, and the State reimburses the employer from the seventeenth hour onwards.
Parental leave
Parental leave is four or six months taken full-time, or eight or twelve months part-time, and the allowance is paid by the Caisse pour l’avenir des enfants rather than by the employer.
Family care leave
Leave for family reasons depends on the child’s age, at 12, 18 or 5 days per child. There is also carer’s leave of five days a year, end-of-life leave, and a schedule of extraordinary leave for events such as a marriage or a bereavement.
We carry all of this for you
We track leave balances, make sure payslips carry the right entitlements, and tell you what is coming. When someone goes on maternity or parental leave we deal with the CNS and the Caisse pour l’avenir des enfants. You do not need to learn the Code du travail to employ someone here.
Our Services
What we actually do
Take the EOR Luxembourg route and the first move is no longer incorporation. Because our registration to employ here already exists and your team joins our payroll, that groundwork is behind you before you start.
Learn more ›Take someone on with no company of your own
Where you want a Luxembourg hire but no incorporation, we employ the person here and run the employment relationship end to end.
Payroll and tax in Luxembourg
We run Luxembourg payroll, withhold tax under the employee tax card, pay contributions to the CCSS, and keep the monthly filings consistent.
HR and employment compliance
Straightforward HR guidance anchored in the Code du travail and whichever collective agreement bites, from onboarding through mid-contract changes to offboarding.
Employee benefits in Luxembourg
Assemble benefits that hold up in the Luxembourg market — private health cover, meal vouchers and pension arrangements among them.
Employing in Luxembourg
Tell me more aboutonboarding|in Luxembourg
Hiring in Luxembourg goes more smoothly with HR support on hand. You get straight answers on employment rights, leave, cross-border workers and paperwork, from people who work on Luxembourg employment every day.
Luxembourg Employment Guide ›About Us
How are we different from other EOR providers?
We set out to make hiring in Luxembourg simpler for international teams. You deal directly with the people running your payroll and making the filings, not with an account manager passing messages to a partner in another country.
Book a DemoCommon questions
No. EOR Luxembourg is registered to employ in Luxembourg, so we employ the person and you do not form a company, deposit share capital, apply for a business permit or file annual accounts.
Usually within a few days once we have the details. The declaration of entry goes to the CCSS within eight days of starting and the contract has to be signed by the first day, so the timing depends mostly on how quickly the employee returns their information. A non-EU hire takes longer because the work authorisation comes first.
We employ the person you chose, on an ordinary Luxembourg contract, and they work only for you. A temporary work agency supplies its own workers for short assignments under a separate licensed regime. Your hire is a normal employee, not agency labour.
A fixed fee of €499 per employee per month. It covers the employment administration, payroll, the tax and social security filings, and HR support. We do not take a percentage of salary. Note that the salary itself is index-linked in Luxembourg, so your total monthly cost moves when a tranche triggers, and we tell you before it lands on the invoice.
Ready to hire in Luxembourg?
Someone lined up for a Luxembourg role? We will employ them and run their payroll without a company of yours being opened.
The contract, the payroll and the filings are handled here. Your focus stays on the person joining the team.
Speak to an expert
Get in touch
Start employing in Luxembourg today
Book a call to talk through what hiring in Luxembourg would look like for your team.