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Luxembourg – Employment Terms and Conditions

Working Hours in Luxembourg

The standard working week in Luxembourg is 40 hours, with a maximum of 8 hours per day. However, many companies have implemented a 35-hour work week. Employees are entitled to a minimum of 11 hours of rest between each working day and a minimum of 24 hours of rest per week.

Employment Rights and Benefits in Luxembourg

Paid Vacation and Sick Leave

Employees in Luxembourg are entitled to a minimum of 25 days of paid annual leave. In addition, workers are entitled to a varying amount of sick leave depending on the duration of their employment. For example, employees are entitled to up to 77 days of paid sick leave per year after 25 years of service.

Social Security Benefits

All employees in Luxembourg must be enrolled in the social security system, which provides a range of benefits, including healthcare, disability insurance, and a pension. Both employers and employees must make contributions to the system.

Maternity and Paternity Leave


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Expectant mothers in Luxembourg are entitled to 16 weeks of maternity leave, paid at their full salary. Fathers are entitled to up to 10 days of paternity leave, paid at their full salary.

Severance Pay

If an employee is terminated without just cause, they are entitled to receive severance pay. The amount of severance pay depends on the length of service with the employer. For example, employees with less than 5 years of service are entitled to 1 month’s pay, while those with more than 20 years of service are entitled to 6 months’ pay.

Pensions

All employees in Luxembourg are entitled to a pension through the social security system. Both employers and employees must make contributions to the system, which is managed by the government. The pension is calculated based on the number of years of service and the average salary earned during the last 10 years of service.

Types of Pensions for Expats in Luxembourg

Expats who are working in Luxembourg may be eligible for a pension through the social security system if they meet certain requirements. Firstly, they must have a valid work permit and be enrolled in the system. Secondly, they must have made contributions for at least 120 months to be eligible for a pension.

Retirement Age in Luxembourg

The retirement age in Luxembourg is currently 65 years old. However, there are discussions to increase the retirement age in the future.

In conclusion, workers in Luxembourg are entitled to a range of employment rights and benefits, including paid vacation and sick leave, social security benefits, and severance pay. All employees must be enrolled in the social security system, which provides a pension. Expats may be eligible for this pension if they meet certain requirements. The retirement age in Luxembourg is set to increase in the future. It is important for both employers and employees to understand these employment terms and conditions to ensure that workers are being treated fairly and in accordance with the law.


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