Payroll in Luxembourg runs in EUR on a monthly payroll, typically paid by the last working day of the month. cycle, with statutory employer contributions and no statutory 13th-month payment is mandated by law, though it is common by collective agreement or company practice in many sectors.. Gracemark operates it end-to-end, humans, not tickets.
Currency
EUR, Euro
Payroll cycle
Monthly payroll, typically paid by the last working day of the month.
Working week
Standard 40 hours/week (8 hours/day) with legal overtime premiums of 140% for authorized overtime hours, subject to Labour Code limits.
Minimum wage
Unskilled social minimum wage (salaire social minimum) is EUR 2,570.93/month for workers 18+ as of January 2024, indexed periodically to the cost-of-living index; a qualified-worker rate of 120% applies. [1](https://gouvernement.lu/dam-assets/documents/actualites/2024/01/10-adaption-parametres-sociaux/paramtres-sociaux-janvier-2024.pdf)
13th-month
No statutory 13th-month payment is mandated by law, though it is common by collective agreement or company practice in many sectors.
Employer cost
Employer social security contributions are approximately 12-15% of gross salary, funding health, pension, accident, and family/mutuality-of-employers insurance.
Probation
Probation period may be set by contract, generally between 2 weeks and 6 months (up to 12 months for higher-skilled roles), governed by the Labour Code.
Notice period
Notice periods scale with seniority (typically 2 to 6 months); severance (indemnité de départ) is owed after 5+ years of service, scaling with tenure, unless just-cause dismissal applies.
Two ways to run payroll in Luxembourg
Own-entity payroll
For long-term presence in Luxembourg. Gracemark manages statutory filings, pay runs, and year-end reporting under your entity, with a named operator on Western Europe time.
EOR-run payroll
No entity in Luxembourg? Employ and pay talent under Gracemark's local infrastructure via EOR, onboard in typically 1–3 weeks via eor, no local incorporation.
Compliance essentials in Luxembourg
Employment model: EOR vs. contractor vs. local entity for Luxembourg
Mandatory benefits, social contributions and any 13th-month obligation
Termination rules, statutory notice and severance exposure
Contractor misclassification risk and how local law defines employment
Currency (EUR), payroll cycle and German-language contract requirements
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