Luxembourg

Working time & holidays

The regular full-time week is 40 hours over five days; the caps are 10 hours per day and 48 per week. Overtime premiums can even be income-tax-free under conditions.

Minimum leave is 26 working days plus 11 public holidays — if one falls on a rest day, a replacement day accrues.

Forms of employment

The permanent CDI is the standard, with strong protection after probation. The CDD is reserved for temporary tasks; part-time work carries full equal rights, agency work is tightly regulated.

Income taxes

Progressive rates run from 8 % to 42 % depending on tax class (1, 1a, 2), withheld at source. Add the employment-fund surcharge (7 %, 9 % on high incomes) and 1.4 % care insurance.

Payroll costs

At typically 12–15 % on top of gross, employer contributions undercut most EU neighbours: health approx. 3.05 %, pension 8.00 %, accident insurance around 0.7 % plus minor levies.

Collective agreements

Collective agreements — negotiated by OGBL, LCGB and the employer federations — are sector- or company-based and may only improve on statutory conditions.

Hiring from abroad

The market splits into residents and cross-border commuters: more than half the workforce commutes in daily from France, Germany and Belgium. EU citizens need no work permit; third-country nationals need a residence permit with work authorisation — with special tracks for the highly qualified. Multilingualism is essential, especially in finance.