Working Hours
Employees can work up to 40 hours per week.
Minimum Wage
From 1 January 2025, the minimum wage is set as follows:
- €3,165.35 per month or €18.30 per hour for skilled employees,
- €2,637.79 per month or €15.25 for non-skilled employees.
Employee Tax
Annual income | Tax rate* |
|---|
Up to EUR 11,265 | 0% |
EUR 11,266 - 13,173 | 8% |
EUR 13,137 - 15,009 | 9% |
EUR 15,009 - 16,881 | 10% |
EUR 16,881 - 18,753 | 11% |
EUR 18,753 - 20,625 | 12% |
EUR 20,625 - 22,569 | 14% |
EUR 22,569 - 24,513 | 16% |
EUR 24,513 - 26,457 | 18% |
EUR 26,457 - 28,401 | 20% |
EUR 28,401 - 30,345 | 22% |
EUR 30,34 - 32,289 | 24% |
EUR 32,289 - 34,233 | 26% |
EUR 34,233 - 36,177 | 28% |
EUR 36,177 - 38,121 | 30% |
EUR 38,121 - 40,065 | 32% |
EUR 40,065 - 42,009 | 34% |
EUR 42,009 - 43,953 | 36% |
EUR 43,953 - 45,897 | 38% |
EUR 45,897 - 100,002 | 39% |
EUR 100,002 - 150,000 | 40% |
EUR 150,000 - 200,004 | 41% |
More than EUR 200,004 | 42% |
Solidarity tax | 7% - 9%** |
Social security contribution (sickness) | 3.05% applicable to base salary, benefits in kind and cash benefits. 2.80% applicable to allowances as well as bonuses. |
Social security contribution (pension) | 8% |
| Care insurance | 1.40% |
*Based on a single person’s income. Tax bands may be different for married couples filing jointly.
**Actual amount depends on the employee’s salary.
Bonuses
There are no statutory bonus schemes in Luxembourg, but a 13th-month salary is common. Other bonus schemes are also popular with individual employers.
Young Employee Bonus
Effective January 2025, employers can offer a ‘young employee’ bonus to workers under the age of 30 who are starting their first permanent contract. The bonus is 75% tax-free, with the following limits based on gross annual pay:
- €5,000 for salaries of €50,000 or less.
- €3,750 for salaries up to €75,000.
- €2,500 for salaries up to €100,000.
