Luxembourg
Luxembourg offers a diverse range of employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.
Employment Termination and Notice Period in Luxembourg
In order to terminate an employment contract in Luxembourg, in particular in the case of an open-ended contract, the Labor Code requires written notification to the other party prior to termination, except in the case of gross misconduct.
Employment contracts may be terminated for the following reasons.
- The work for a specific project is complete
- For gross misconduct
- At the end of a fixed-term contract
- By mutual consent of the employee and the employer
- Personal reasons
- Business needs
Dismissal is prohibited under certain circumstances, such as pregnancy, maternity leave, or illness of the employee.
The notice period, which is not applicable in the case of dismissal for gross misconduct, depends on the length of service:
- Less than 5 years: 2 months notice period
- Between 5 and 10 years: 4 months notice period
- More than 10 years: 6 months notice period
In the event that collective agreements contain provisions on notice periods, the employer and the employee must observe the notice periods stipulated in the collective agreement.
Average salary, average employer costs and working hours in Luxembourg
In 2022, the average salary in Luxembourg was $60.481,68. This is higher than the average annual salary in the United States, which is $53.490,00. As an employer, the average cost of employment is between 12.22% and 14.82% higher than the gross annual salary in Luxembourg. Based on an annual salary of $60.481,68, the average labor costs are $67,739.48
See all average salaries in Europe in 2022
The normal working week in Luxembourg is 8 hours per day and 40 hours per week. All working hours exceeding the standard number of working hours per week are paid as overtime and are regulated by the employment contract/collective agreements. The employee and the employer must also agree and inform the labor authorities before starting to work overtime. In general, the maximum limits for overtime should not exceed 2 hours per day and 8 hours per week.
Overtime is compensated at a rate of 150% of the regular wage rate.
Paid vacation leave and public Luxembourg
Employees receive a minimum of 26 working days of paid vacation per year. In addition, certain employees automatically receive additional leave:
- Persons with disabilities or victims of an industrial accident - 6 extra days of leave
- Mining employees - 3 additional days of leave
- An employee or apprentice who has not had a continuous rest period of 44 hours per week - 1 additional day for every 8 weeks during which the employee does not have a continuous rest period.
- Additional paid vacations may be granted by collective agreements or employers.
In addition to the usual national holidays, certain days may be observed depending on where the employee lives. The main public holidays, on which most employees in Luxembourg have time off, are listed below.
- New Year's Day - 1 January
- Good Friday - 15 April
- Easter Monday - 18 April
- Labour Day - 1 May
- Europe Day - 9 May
- Ascension Day - 26 May
- Whit Monday - 6 June
- National Day - 23 June
- Assumption Day - 15 August
- All Saints' Day - 1 November
- Christmas Day - 25 December
- St. Stephen's Day - 26 December
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Monique Ramondt-Sanders
CCO & VP of HR Outsourcing