What is the payroll cycle in Luxembourg?

Monthly payroll, typically paid by the last working day of the month. Payroll is paid in EUR (Euro).

Can I run payroll in Luxembourg without a local entity?

Yes. Through an Employer of Record (EOR), Gracemark employs your talent under Luxembourg labor law and runs local payroll, no entity required.

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Payroll in Luxembourg

Payroll in Luxembourg runs in EUR (Euro). Monthly payroll, typically paid by the last working day of the month. No statutory 13th-month payment is mandated by law, though it is common by collective agreement or company practice in many sectors. Statutory employer contributions apply. Gracemark operates it end-to-end, humans, not tickets.

Get a Luxembourg payroll quote Paying an existing team there? Tell us the headcount, email or phone is enough.

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.

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

Get a payroll quote for Luxembourg

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Deeper guide

Hiring guide: Luxembourg →

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