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Hiring into Luxembourg?

How to choose an
Employer of Record in Luxembourg

Producing a payslip is the easy part. The harder test is whether a provider can tell you what an index tranche does to your March payroll, how a cross-border worker living in Thionville is taxed once she exceeds her treaty day allowance, or why notice served on the wrong date costs you an extra fortnight. Luxembourg rewards providers who know the mechanics. Below are the questions that reveal whether yours does.

Book a demoAbout UsFrom €499 a month, with no Luxembourg company required
Registered to employin Luxembourg
Filings on timeMonthly payroll reporting
Marc, Operations Director at EOR Luxembourg, the Employer of Record for hiring staff in Luxembourg

The employer duties we assume properly in Luxembourg

Direction of the work remains yours. Everything attaching to employer status becomes ours.

  • Contracts written to the Code du travail, in the language the employee actually reads
  • Withholding applied against the employee’s fiche de retenue d’impôt, plus CCSS contributions
  • The monthly CCSS declaration and ACD filings made on schedule
  • Leave tracked across annual, sick, maternity, paternity and parental entitlements
  • Notice calculated from the correct start date under the rule of the 15th
  • Indemnité de départ worked out where an employee qualifies on length of service
  • Payroll and HR records held under GDPR with a documented access trail
  • Insurance cover in place, and a named person to escalate to
A manager using the EOR Luxembourg portal to approve people, payroll and contracts
Your point of contact

A real person, not a chatbot.

Providers are judged on bad days rather than good ones. When you call about a dismissal or a disputed payslip, the person picking up has your file open already and has been on your account since the first hire.

Your Luxembourg teamOne named contact
Choosing well

Eight things to establish before signing

Answers to these reveal experience quickly, and their absence reveals rather more.

Compliance ownership

When an index tranche is triggered, who applies the 2.5% uplift, and how quickly does it reach the payslip?

Payroll precision

How do they handle cross-border employees living in France, Belgium or Germany, and the tax treaty day-count limits that apply to their home working?

Employer risk cover

If a dismissal ends up at the ITM or in front of the Tribunal du travail, who defends it and whose insurance responds?

Data accountability

Where does the payroll file physically sit, who is controller over it, and what is the retention period once employment ends?

Local HR knowledge

Can they produce a contract in French, German or English as the employee prefers, and do they know which language a court would read first?

Honest onboarding times

What is their real onboarding time once the tax card is requested from the ACD, rather than the figure on the homepage?

Predictable cost

Which Mutualité des employeurs class will your employees fall into, and do they know what that adds to your contribution rate?

Solid documentation

Is there self-service access to executed contracts, payslips and CCSS submission receipts, or must every document be requested?

Side by side

How we compare for Luxembourg

From €499 a month, with onboarding that stands up to scrutiny.

Best for LuxembourgEOR LuxembourgDeelOysterRemoFirstRemotePapayaNative Teams
Monthly feeFrom €499From $599From $699From $199+From $699From $650From $99
Transparent pricing, no surprise fees✓✕✓✕✓✓✕
Luxembourg EOR specialists✓✕✕✕✕✕✕
Dedicated Luxembourg payroll & HR team✓✕✓✕✓✕✕
Free salary guidance for Luxembourg roles✓✕✕✕✕✕✕
Real understanding of Luxembourg’s multilingual workplace✓✕✕✕✕✕✕
Fast onboarding turnaround✓✓✓✓✓✕✓
Flexible contract amendments✓✕✕✕✕✕✕
Access to global hiring✓✓✓✓✓✓✓
A named expert account manager✓✕✕✕✕✕✕

Competitor figures come from published list prices and can change with contract length, add-ons and country. Those prices are quoted in US dollars as published. Our €499 converted to roughly $572 in September 2026, so the difference is narrower than a straight numerical comparison suggests. None of these platform fees include salary, employer contributions or statutory benefits. Figures checked September 2026 and offered as a guide rather than a quote.

Proof, not marketing

What employers moving into Luxembourg get from us choose us

HR staff who resolve a question rather than route it back to you

Every cycle declared to the CCSS and the ACD on time

A named escalation route, answered the same working day

Plain answers on where your data sits and what is recorded

The same onboarding sequence applied to every hire

Documentation that holds up to an ITM or CCSS inspection

2026New contribution ceiling

What changed in Luxembourg in 2026

Three changes landed this year that affect what you pay. The contribution ceiling moved twice, from €13,518.68 in January to €13,856.63 from 1 June. The tripartite pension contribution rose from 24% to 25.5% on 1 January, which took the employer share from 8% to 8.5%. And the third-pillar pension deduction ceiling went from €3,200 to €4,500 a year. A provider should be applying each of these without being asked. Ask a prospective one what the current ceiling is; if they have to look it up, that tells you something.

Who this is for

Built for teams expanding into Luxembourg

01

Founders weighing providers ahead of a first Luxembourg hire

02

HR functions testing whether indexation and frontalier payroll are genuinely handled

03

Finance teams modelling contribution costs ahead of approving headcount

04

Existing EOR customers who suspect the service is thinner than the invoice suggests

Frequently asked

Frequently raised points

Whose name appears on the contract?+
Ours. The employee contracts with our Luxembourg company, which is also the entity declared to the CCSS on their behalf. You retain direction of the work and the decision to end the role; the statutory obligations attach to us.
How does an EOR run Luxembourg payroll?+
The sequence runs: tax card determines withholding, contributions are computed for employer and employee, the monthly declaration reaches the CCSS, and withheld tax goes to the ACD. Ask a prospective provider to walk you through it unprompted. Hesitation usually means the work is subcontracted.
And pensions?+
The state element is embedded in the CCSS contribution and needs no separate handling. Should you wish to go further, a régime complémentaire de pension can be established, against which the employee may deduct personal contributions up to €4,500 annually as of 2026.
If a dismissal is contested, who answers for it?+
Proceedings name the employer, which is us, and we insure against that exposure. Since the commercial decision is yours, we give you a candid reading of how the dismissal would stand up under Luxembourg law before anything is communicated. The outcome lands on both of us, so the assessment happens first.
What governs the employee data?+
Controllership is divided: the employment record is ours, the working relationship is yours, and the agreement records this explicitly instead of leaving it implied. You will be told which systems hold what, and the retention period applied after someone departs.
Is the pricing fixed?+
Pricing is per employee from €499 a month and stays at the quoted figure. Anything chargeable beyond it is identified before you sign, not introduced part-way through the term.
Is the contract amendable later?+
It is, though Luxembourg formalises this more than most jurisdictions. Improvements such as a rise or promotion are straightforward. Anything detrimental, a pay cut or relocation, constitutes modification of an essential clause and must follow a prescribed procedure carrying its own notice period. Drafting is ours in both cases.
Where does support actually sit?+
Here, with people whose work is this jurisdiction. It matters more than elsewhere: a frontalier’s tax position or the effect of an index tranche cannot be answered from a script, and a first-line agent reading one will get it wrong.

Ready to employ someone in Luxembourg?

Tell us about the role and we will come back with costs, a timeline and the CCSS position.

Get in touch

We will walk you through how the employment is structured and what it comes to each month.