Employer of Record (EOR) in Luxembourg

Hire in Luxembourg in days, with no entity and no exposure to getting Code du travail compliance wrong. We place you with the right vetted EOR partner, at pricing you will not get going direct, and stay on your side for the life of the relationship.

  • Independent advice
  • Vetted partners
  • Operational in days

What an Employer of Record does for you in Luxembourg

An Employer of Record is a company that legally employs your Luxembourg staff on your behalf. You choose the person and direct their work day to day. The EOR is the legal employer on paper, which is what lets you build a team in Luxembourg without forming your own company. In practice the EOR partner takes on everything that needs a Luxembourg legal entity and local expertise: a compliant employment contract under the Code du travail, monthly CCSS and ACD withholding, and lawful onboarding and exits.

01

Legal employer, on paper

A compliant Luxembourg employment contract under the Code du travail, with all statutory terms correct from day one.

02

Compliant from day one

Monthly payroll, income tax, and CCSS contributions across every branch withheld and remitted correctly, with employer filings to the CCSS and ACD kept current as the wage index moves.

03

No entity required

Statutory benefits, annual leave, notice and severance under the Code du travail, and lawful onboarding and exits. You get a working team in days; the EOR carries the legal weight.

How it works: four steps to a compliant hire

From first call to a compliant Luxembourg hire at work, usually in days.

01 — Scope & quote

We map the role, salary, and start date, and come back with a clear all-in monthly cost. No guesswork, no hidden extras.

02 — Compliant contract

Your employment contract is drafted to Luxembourg standards by the partner, and we sanity-check the terms and pricing before you sign. Compliant from day one.

03 — Onboard in days

A correct Luxembourg contract is issued under the Code du travail, with all statutory terms from day one. Your hire can start in days.

04 — Payroll & compliance run

Income tax and CCSS contributions calculated and withheld, payslips issued, statutory filings made to the CCSS and ACD. You direct the work; the compliance just runs.

What EOR in Luxembourg costs

Two parts: the statutory cost of employing someone, and the EOR partner fee. In Luxembourg the statutory employer cost runs through five separate CCSS branches, plus an employer-specific accident and absenteeism surcharge, rather than one combined tax. We make both transparent before you commit, so there are no surprises.

Employer social security

A fixed 11.69% of gross (3.05% health, 8.50% pension, 0.14% occupational health), plus your own accident-insurance rate (bonus-malus adjusted, around 0.65% of gross) and a mutualité des employeurs sick-pay levy of 0.23% to 2.66% depending on your absenteeism class. Combined employer cost typically runs 12.5% to 15% of gross, capped at EUR 13,856.63/month for every branch except dependency insurance. Predictable and fully costed before you commit.

Minimum wage (2026)

EUR 2,771.33/month unqualified, EUR 3,325.59/month for a qualified worker, both effective 1 June 2026 and reset automatically at the next indexation tranche.

Income tax (employee)

23-bracket progressive scale from 0% below EUR 13,230 to 42% above EUR 234,870, plus a Fonds pour l’emploi surcharge of 7% of the tax due (9% above EUR 150,000 adjusted taxable income in most cases). Withheld monthly at source, reconciled annually. Borne by the employee, not added to your cost.

EOR partner fee

A transparent per-employee monthly fee. We benchmark across our vetted network, typically 15 to 25% below going direct, and renegotiate for you at renewal.

Why run it through Bradford Jacobs

We know which EOR partners are genuinely strong in Luxembourg, by sector and by complexity. We place you with the right one, at pricing you will not get going direct, and stay on your side for the life of the relationship.

Independent, not a single provider

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Luxembourg’s employer cost splits across five CCSS branches plus your own accident and absenteeism-class surcharges, which makes it easy to under- or over-quote a monthly fee up front. We benchmark across our partner network for rates typically 15 to 25% below going direct, and renegotiate on your behalf at renewal. Most companies do not know how much room there is to negotiate until we show them.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades across markets

Two decades placing and managing EOR arrangements across global markets, with the local knowledge of the Code du travail, the five-branch CCSS structure, and Luxembourg’s automatic wage indexation that keeps you compliant.

  • EOR specialists
  • Code du travail & CCSS
  • Risk removed

Built for conversion to your own entity

Most companies use EOR for 12 to 24 months, then move to their own Luxembourg SARL. We plan that crossover and manage the transition when the economics justify it.

  • EOR to entity path
  • Transition managed
  • Crossover planning

Why an EOR is the fastest compliant way into Luxembourg

Two things slow foreign employers down in Luxembourg: the time to incorporate, and the risk of getting the Code du travail’s notice, severance, and dismissal rules wrong. An EOR removes both.

Working time, leave & contracts

Compliance handled under one Code du travail. Luxembourg employment law requires mandatory CCSS contributions across five branches, and dismissal that needs a real and serious cause, with statutory notice, rather than at-will termination. An EOR carries all of it correctly from day one, so a wrong assumption never becomes a liability.

Operational in days, not weeks

Incorporating a Luxembourg SARL takes several weeks once the notarial deed, capital, and RCS filing are in place, and you cannot legally employ anyone until registration completes. An EOR removes that wait entirely: a compliant Luxembourg contract is issued and your hire starts in days. You prove the market first, then incorporate later only if the headcount justifies it. This is the real value of EOR in Luxembourg: speed into one of Europe’s most valuable, and most closely regulated, labour markets.

Everything your Luxembourg EOR covers

One transparent monthly fee per employee covers all of this. No hidden extras.

Compliant Luxembourg contract

A compliant Luxembourg employment contract under the Code du travail, issued and maintained for you.

Payroll, social security & health insurance

Monthly payroll run, with income tax and CCSS contributions calculated, withheld, and filed correctly each month.

Statutory benefits

All statutory benefits administered: 26 days’ paid annual leave, 11 public holidays, maternity leave (20 weeks, CNS-funded) and paternity leave (10 days), and statutory notice on exit, which Luxembourg requires since it is not at-will. Employee CCSS contributions run 12.95% of gross (3.05% health, 8.50% pension, 1.40% dependency on an abated base), deducted from salary, not billed to you.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how Employer of Record works in Luxembourg.

Is my hire employed by Bradford Jacobs or by me?

Legally, your hire is employed by the Luxembourg EOR partner we place you with, which is what keeps you compliant without an entity. Day to day they work for you: you set the work, the goals, the relationship. You get the team; the partner carries the legal employer obligations.

Usually within days once the role and salary are agreed, with a compliant Luxembourg contract from day one. Compare that to the several weeks a SARL incorporation can take, during which you cannot legally employ anyone.

Roughly 12.5% to 15% of gross: a fixed 11.69% core (health, pension, occupational health) plus your own accident and absenteeism-class surcharges. Add the transparent EOR partner fee and you have your all-in cost.

Yes, when done properly. The EOR is a real Luxembourg legal employer meeting all Code du travail, CCSS, and tax obligations. The risk is using an under-resourced partner, which is exactly why we place you with vetted partners and stay on your side.

The compliant contract, monthly payroll (income tax and CCSS withholding), employer contributions, statutory benefits and leave administration, and ongoing HR compliance. We give you one all-in monthly figure up front, with no hidden extras.

Yes, and most companies do once the headcount and permanence justify it. We manage the transition from EOR to your own Luxembourg SARL, and can support the incorporation itself. Most use EOR for 12 to 24 months first.

Ready to hire in Luxembourg?

Tell us the role and we will come back with a compliant, all-in monthly cost and the right partner, usually within a day. No entity, no lock-in, no pitch, just the fastest compliant way to get your person working in Luxembourg.

Tax and labour data verified July 2026 (CCSS, IGSS, ACD, ITM). Figures change, and some move automatically with Luxembourg’s own wage index; we confirm the current position when we scope your hire.