Grow Your Workforce in Luxembourg

Income Tax in Luxembourg

Income Tax in Luxembourg is progressive and ranges from 0% to 42%.

Social Security in Luxembourg

In Luxembourg, both employers and employees contribute to social security. The contributions are as follows:

Employee Contributions

• Health Insurance
• Rate: 3.05% of gross salary.
• Pension Insurance
• Rate: 8% of gross salary.
• Long-term Care Insurance
• Rate: 1.4% of gross salary.
• Total Employee Contribution
• The total mandatory social security contribution for employees is approximately 12.20% of gross salary, which includes the above components.

Employer Contributions

• Health Insurance
• Rate: 3.05% of gross salary (same as employee contribution).
• Pension Insurance
• Rate: 8% of gross salary (same as employee contribution).
• Long-term Care Insurance
• Rate: Not applicable for employers.
• Family Benefits:
• Rate: 1.70% of gross salary.
• Occupational Health:
• Rate: 0.13% of gross salary.
• Workplace Accident Insurance:
• Rate: 0.75% of gross salary.
• Employers' Mutual Insurance:
• Variable Rate: Approximately 0.46% depending on the company's risk profile.
• Surcharge for Cash Compensation:
• Rate: 0.25% of gross salary.

Work Visas Luxembourg

The visas available to legally work in Luxembourg include:

EU Blue Card

To apply for the EU Blue Card, a third-country national must:

• Hold a valid passport.
• Check if they need a visa to enter the Schengen area.
• Meet the high professional qualification criteria.
• Have a job contract for at least one year for highly qualified work. Receive a salary offer that.
• At least 1.5 times the Luxembourg average gross annual salary (EUR 78,336), or
• At least 1.2 times the Luxembourg average gross annual salary (EUR 62,668.80).

Short Stay Visa

• A short-stay visa gives individuals the ability to stay in the Schengen area for a continued or interrupted 90 days.
• This visa is typically used for business trips, conferences, meetings, and family visits.

Long Stay Visa

• This visa is meant for third-country nationals who want to travel to Luxembourg for more than 3 months for work, education, or to join a family member who is an EU citizen.
• It is most common for salaried employees, self-employed workers, highly qualified employees, and students.