EOR in Luxembourg
Employer of Record in Luxembourg
- Save upto 3% on your payroll cost
- Hire employees in Luxembourg without establishing a local legal entity
- Manage payroll, social security contributions, and tax compliance seamlessly
- Minimize permanent establishment risks and legal exposure
- Onboard top talent faster with compliant Luxembourg employment contracts
- Enjoy transparent pricing and cost-effective market entry solutions
Happy Customers Globally
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Currency
Euro (EUR)
Capital
Luxembourg City
Official Language
Luxembourgish, French, German
Payroll Cycle
Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's EOR in Luxembourg
Asanify is the #1 ranked Employer of Record platform across multiple categories on G2. Our Luxembourg EOR solution enables businesses to hire and manage employees compliantly in one of Europe’s most attractive business hubs—without the complexity of entity setup. We handle everything from payroll and social contributions to employment law compliance, letting you focus on growth.
Hire Quickly and Legally
Expand into Luxembourg within days, not months. Our EOR service eliminates the need for local entity registration, enabling you to onboard talent immediately while maintaining full compliance with Luxembourg's labor laws.
Comprehensive Payroll Management
We manage all payroll processing in EUR, including salary payments, social security contributions, health insurance, and pension fund compliance. Our automated system ensures accurate, on-time payments every month.
Full Regulatory Compliance
Navigate Luxembourg's complex employment regulations with confidence. Asanify ensures compliance with the Labour Code, social security obligations, and statutory benefits, protecting your business from legal risks and penalties.
Transparent Cost Structure
No hidden fees or surprise charges. Our transparent pricing model provides clear visibility into employment costs, employer contributions, and service fees, helping you budget accurately for your Luxembourg expansion.
How Asanify's Employer of Record Works in Luxembourg
Our streamlined EOR process makes hiring in Luxembourg effortless. Asanify becomes the legal employer of record while you maintain complete operational control over your team’s daily activities.
- Instant Market Entry: Start hiring without setting up a Luxembourg subsidiary or dealing with complex registration procedures
- End-to-End Management: From compliant contracts to benefits administration, we handle all HR and payroll operations
- Risk Mitigation: Protect your business from permanent establishment concerns and employment law violations
Trusted by top companies around the Globe
Employer of record
Employment Law Compliance in Luxembourg
Luxembourg’s employment framework combines elements of French, Belgian, and German labor law, creating unique compliance requirements. Asanify ensures adherence to all statutory obligations including working time regulations, mandatory social security enrollment, and employee representation rights. Our local expertise keeps your operations compliant with evolving legislation.
- Automatic tax withholding and social security contributions to Luxembourg authorities
- Compliance with 40-hour work week standards and overtime regulations
- Management of statutory leave entitlements including 26 days annual leave minimum
What our happy customers say
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Employer of Record FAQs in Luxembourg
What is an Employer of Record in Luxembourg?
An Employer of Record (EOR) in Luxembourg is a third-party organization that becomes the legal employer of your workforce in Luxembourg, handling all employment responsibilities including contracts, payroll, taxes, social security, and compliance. This allows your company to hire Luxembourg employees without establishing a local entity.
How quickly can I hire employees in Luxembourg using an EOR?
With Asanify’s EOR service, you can onboard employees in Luxembourg within 3-5 business days once candidate selection is complete. This includes contract preparation, background verification, and all necessary compliance documentation—significantly faster than establishing your own legal entity.
What are the employer costs in Luxembourg?
Employer costs in Luxembourg include social security contributions (approximately 12-16% of gross salary), accident insurance, and other statutory contributions. Total employer costs typically add 15-18% on top of gross salaries. Asanify provides transparent cost breakdowns during the onboarding process.
Does using an EOR create permanent establishment risk in Luxembourg?
When properly structured, an EOR arrangement significantly reduces permanent establishment (PE) risk. Asanify acts as the legal employer, maintaining control over employment matters. However, PE risk depends on various factors including your operational presence. We recommend consulting tax advisors for your specific situation.
What employee benefits are mandatory in Luxembourg?
Mandatory benefits in Luxembourg include health insurance, pension contributions, unemployment insurance, accident insurance, and paid leave (minimum 26 days annually). Employees are also entitled to 13th-month salary in many sectors, public holidays, and parental leave benefits. Asanify manages all statutory benefits compliance.
How does payroll work through an EOR in Luxembourg?
Asanify processes monthly payroll in EUR, calculating gross-to-net salaries, withholding income tax, and remitting all social security contributions to Luxembourg authorities. Employees receive detailed payslips, and you receive transparent invoicing for all employment costs plus our service fee.
Can I terminate employees through an EOR in Luxembourg?
Yes, Asanify manages compliant terminations according to Luxembourg labor law. This includes proper notice periods (which vary by tenure), severance calculations if applicable, and all required documentation. Luxembourg has strong employee protections, so proper termination procedures are essential to avoid legal complications.
What languages are used for employment contracts in Luxembourg?
Employment contracts in Luxembourg are typically drafted in French or German, though English contracts are increasingly common for international companies. Asanify prepares legally compliant contracts in the appropriate language(s) based on your requirements and local legal standards.
How does Asanify handle Luxembourg social security registration?
Asanify manages complete social security registration with the Centre Commun de la Sécurité Sociale (CCSS), including health insurance enrollment, pension fund registration, and all ongoing contribution reporting. We ensure timely filings and maintain compliance with all social security obligations throughout employment.
Start Hiring in Luxembourg Today
Expand your team in Luxembourg compliantly and efficiently with Asanify’s Employer of Record solution.