Our Employer of Record (EoR) / International PEO solutions enable staffing organisations and foreign businesses to expand into Luxembourg and hire employees without the need to establish a new corporate entity. 

We take care of the entire employment relationship including managing all social security costs, social benefits and statutory rights afforded to the employee. The best part is that our EoR solutions are completely managed by the Capital GES team, allowing you to concentrate on international expansion. 


Interested in doing business in Luxembourg? Here are the top five things you need to know: 

1. Social security
Employer social contributions total approximately 13% of the gross remuneration. Employee social contributions total approximately 13% of the gross remuneration. Both employee and employer contributions are capped for salaries equal to and higher than 9’614 EUR (2016).

2. Employment contract details
There are no specific rules governing the language used to write employment contracts in Luxembourg. Contracts must always be in writing and specify the type of employment agreed, trial period and restrictive covenants.

3. Fixed-term contract extensions
A maximum of 2 renewals for up to 24 months. 

4. Termination costs
Termination pay includes basic and variable salary until notice end date, untaken leave, benefits in kind and allowances due to the employee until the termination date. Employees with at least 5 years’ seniority are entitled to severance pay equal to 1 months’ salary, up to 12 months’ salary for employees employed for at least 30 years.

Notice periods vary according to seniority and start from 2 months for less than 5 years’ seniority up 6 months for 10 years or more of seniority.

5. Probation Periods
Probation can be set for a minimum of 2 weeks up to 12 months and must be included on the employment contract to be enforced.


If you are looking to expand your workforce in Luxembourg (or any other of the 30 countries we operate in) without the burden of registering an entity and incurring significant expense and administration then please get in touch with Nick Broughton at Capital GES on +44 7539 337 563 or email Nick.Broughton@Capital-GES.com

Capital GES provides market-leading employment services to staffing companies, corporate clients and independent contractors in all sectors across Europe, Latin America and southern Africa. With headquarters in Switzerland and offices in USA, Brazil and UK, Capital GES provides services including Employer of Record, Contractor Payroll, Invoice & Pay and IC Compliance Checking.








For more detailed information on employment matters in Luxembourg, including statutory benefits, employment regulations and contract requirements, download our free guide today or contact our team for a free consultation. ​​