Employer of Record and Payroll Services in Luxembourg

Dhi ADT provides comprehensive EOR and payroll services in Luxembourg, ensuring your business remains compliant with local regulations as you expand seamlessly. We handle compliance, payroll, self-employment, immigration, and taxes, allowing you to focus on your success.

Why Dhi ADT?

Dhi ADT, founded in 2015, is a specialized SaaS HR platform catering to Fortune 500+ clients globally. With a presence in over 50 countries across APAC, GCC, EU, MENA, and the USA, we offer comprehensive global services designed to streamline your operations.

Our expertise includes Global Employer of Record (EOR), Professional Employer Organization (PEO) services, Immigration and Mobility Services, compliance management, benefits administration, accounting, taxation, and customized HR solutions.

Your One-Stop HR Partner for EOR, Payroll, Self-Employment, and Immigration in Luxembourg

Employer of Record (EOR): We act as the legal employer, handling all HR responsibilities so you can operate in Luxembourg without setting up a local entity.

Payroll Services: We manage payroll processing, tax withholdings, and social security contributions, ensuring timely and accurate payments.

Self-Employment Solutions: Tailored services for self-employed professionals, including invoicing and tax filing.

Immigration Solutions: Comprehensive support for work permits and residency visas, ensuring legal employment in Luxembourg.

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Employment Laws in Luxembourg

Capital: Luxembourg City

Language: Luxembourgish, German, and French

Currency: Euro

Payroll Cycle: Monthly

Employment Contract: In Luxembourg, employment contracts are typically indefinite, but fixed-term contracts are subject to strict regulations under the Labor Code. Both types require written form and mutual understanding, with no specific language requirements.

Minimum Wages: As of 2024, the minimum wage in Luxembourg is 2,570.93 euros per month or 14.86 euros per hour.

Employer Taxes: Employer Taxes are approximately 12.22% to 15.30% of Gross salary.

Working Hours: Luxembourg's working time is 8 hours per day and 40 hours per week. Overtime is allowed up to 2 hours per day and 8 hours per week. Therefore, the maximum working time may not exceed 10 hours per day or 48 hours per week.

Annual Leave: In Luxembourg, full-time employees are entitled to 26 days of paid annual leave per year. This includes public holidays, which are otherwise unpaid.

Probation Period: Probation periods generally last between 2 weeks and 6 months, with varying limits based on skills and salary. Unskilled workers have a maximum trial period of 3 months, while those earning over 5 times the minimum wage can trial for up to 12 months.

Notice Period: The notice period an employer must provide an employee depends on the employee's length of service at the time of termination. The minimum notice periods are:

• Less than 5 years of service: 2 months.
• Between 5 and less than 10 years of service: 4 months.
• 10 years or more of service: 6 months.

Termination: Termination procedures depend on employment contracts, collective agreements, and the reason for dismissal. Employers with more than 150 employees must hold a hearing before terminating an employee, while those with at least 15 employees must notify the economic committee of any dismissals. Acceptable grounds for termination include:

• Employee's performance or behavior
• Redundancy
• Business closure

Severance Pay: In Luxembourg, employees terminated without proper notice or with over 5 years of service are entitled to severance pay, calculated as 30 days of salary per year of service, up to a maximum of 25 months' base compensation. The severance pay structure is as follows:

• Less than 5 years: No severance pay
• Less than 10 years: 1 month’s salary
• Less than 15 years: 2 months’ salary
• Less than 20 years: 3 months’ salary
• Less than 25 years: 6 months’ salary
• Less than 30 years: 9 months’ salary
• More than 30 years: 12 months’ salary

National Holidays: In Luxembourg, national holidays for 2024 are as follows:

New Year's Day - January 1

Easter Monday - April 1

Labour Day - May 1

Ascension Day - May 9

White Monday - May 20

National Day - June 23

Assumption Day - August 15

All Saints' Day - November 1

Christmas Day - December 25

St. Stephen's Day - December 26