Regulations for Working in Luxembourg

Overview

Anyone who works in Luxembourg as a foreign worker or is posted there must comply with various legal requirements. Posting to Luxembourg requires correct registration and may entail certain employment and social law regulations, depending on the country of origin. Tax aspects also play an important role, as there may be different tax obligations depending on the length of stay and place of residence. Entry to Luxembourg is also subject to certain regulations, in particular for workers from non-EU countries. Read about the key regulations for posting and working in Luxembourg.

EU Posted Workers Directive

What are the requirements?

It is mandatory to register posted workers on an electronic platform (e-Détachement) available in French, German and English before starting work in Luxembourg.

The following information and documents are required to register on the e-Détachement platform:

Information about the foreign employer and his effective representative
Information about the legal or natural person in Luxembourg who will act as a contact person for the foreign employer
Duration of posting
Place (s) of work in Luxembourg and expected duration of work
Personal data of the posted worker (name, date of birth, nationality, occupation)
Occupation/employment of the posted worker and the activity to be carried out in Luxembourg
Document showing how the foreign employer covers travel, accommodation and food expenses during the posting
Contract for provision of services

Documents required

Foreign employers must keep the following documents during the posting and 10 years after it is completed:

Employment contract or certificate of compliance with Directive 91/553 of 14 October 1991
Payslip and proof of payment of remuneration during posting
Detailed information on working hours during secondment
residence permit, if applicable

All documents must be translated into French or German.

Legal representatives in Luxembourg

Foreign employers must name their legal representative in Luxembourg, who can establish contact with the authorities in Luxembourg. If the foreign employer does not have a representative in Luxembourg, the posted worker should be appointed as a contact person.

Penalties for violation

The fines for non-compliance The rules for posted workers may be between 1,000 and 5,000 EUR amount to.

In the event of repeated violations within 2 years of delivery of the first fine notice, the fine may be doubled
The fines apply per posted worker, with a ceiling of 50,000 EUR

Labor Law

Minimum wage in Luxembourg

Since January 2025, the minimum wage in Luxembourg has been set to 2,637.79 EUR gross fixed per month.

The minimum wage is set as a fixed amount and depends on the age and qualifications of the employee
The minimum wage is updated at regular intervals, and there is no specific rule as to how often it is updated

Working time

The maximum working time is set at 8 hours per day/ 40 hours per week.

Important Hints

Failure to comply with the in the country Applicable employment law may also result in financial obligations, fines or claims under local termination and working time laws.

Social Security

When a worker is posted to Luxembourg from an EU country, EU Regulation 883/2004 on the coordination of social security systems applies:

A1 certificate available: employee continues to be insured by the home country‍
without A1 certificate: The Luxembourg's social security rules, and the foreign employer must act like a Luxembourgish employer.

Important Hints

The consequences of a violation may include extensive administrative obligations, back contributions (interest), increased audit costs and severe sanctions. In addition, significant reputation damage can occur in this context.

Income Tax

If a posted worker is subject to income tax in Luxembourg, the foreign employer is only required to prepare payslips in Luxembourg if the foreign employer has a permanent establishment in Luxembourg.

If there is no permanent establishment, there are two options:

The income tax is paid by filing the posted worker's annual income tax return (Form 100)
The foreign employer voluntarily decides to withhold and remit taxes by filing an individual annual income tax return (Form 100) or a monthly payslip and to pay the income tax to the Luxembourg tax authorities

The tax agreement between Luxembourg, France, Germany and Belgium provides for different thresholds as to when tax liability for income is triggered:

19 days for residents of Germany
34 days for residents of Belgium
34 days for residents of France

Important Hints

The consequences of a violation may vary depending on the situation, but there is often an immediate obligation to file a tax return in the destination country, which can have further, extensive consequences for employees and the company.

Immigration & Visas

International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.

Important Hints

The consequences of a violation may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.

Permanent Establishment

Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.

Important Hints

The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, there are usually also income tax obligations.

Wichtige Hinweise

Important Hints