Luxembourg Employment Guide

Luxembourg Employment Guide

Luxembourg is in Western Europe, bordering Belgium, France and Germany, and serves as a key European financial center and political hub. It has ~650,000 people; its economy focuses on financial services, IT, logistics, steel and high-value-added manufacturing, with Luxembourg City (the capital) as the political, economic and cultural center. Luxembourg’s labor laws require written labor contracts, set a 40-hour standard workweek, and mandate employers to provide minimum wages, social insurance and paid leave. Dismissals must follow legal procedures and offer employees corresponding compensation. Its labor relations system is sound, with a stable overall employment environment and friendliness to foreign-funded enterprises.

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Currency

Euro (EUR)

Capital

Luxembourg City

Official language

Luxembourgish, French, and German

Salary Cycle

Monthly

Our Employment Guide in Luxembourg

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Annual Leave Entitlements for Employees in Luxembourg

Full-time employees in Luxembourg are entitled to 26 working days of paid time off (PTO) per year. This PTO accrues at a rate of 2.17 days per month. Employees become eligible for annual leave after completing three consecutive months of service. Part-time staff receive pro-rated vacation days based on their working hours.

Public Holidays in Luxembourg

Luxembourg observes 11 official public holidays annually. These include:

  • New Year's Day
  • Easter Monday
  • Labour Day
  • Europe Day
  • Ascension Day
  • Whit Monday
  • National Day
  • Assumption Day
  • All Saints' Day
  • Christmas Day
  • Boxing Day (December 26th)

Practical Implications for International Employers

Companies like SailGlobal must ensure compliance with Luxembourg's leave regulations when managing international teams. For example, a full-time employee starting in January would accumulate approximately 13 days of PTO by June, becoming eligible for usage after April. This structured approach helps maintain workforce satisfaction while adhering to legal requirements.

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