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If you are interested in hiring a remote team in Luxembourg, or even just individual remote employees in Luxembourg, then you have come to the right place!
Rivermate is an Employer of Record (EOR) that offers Luxembourg payroll solutions. As a Luxembourg payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Luxembourg. We are confident Rivermate’s payroll solutions Luxembourg will help you grow as a business—because now, you won’t have to worry about your payroll solutions Luxembourg. We take care of everything payroll!
With Rivermate, you can run Luxembourg payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.
Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!
When you set up your Luxembourg payroll, you must meet a number of requirements. First, depending on the nature of your business, you must register with either the Minister of Finance or the Inspectorate of Labour and Mines (ITM). You will then be issued a business permit by Luxembourg's social security authorities, allowing you to begin operations.
You'll also need a bank account to pay your employees from. A company executive can open a resident or non-resident bank account, obtain social security identification, provide proof of employment, and complete various payroll forms. You should complete this process within eight days of coming to Luxembourg.
Luxembourg has a comprehensive social security system that covers everything from maternity leave to dependents insurance to disability. Employers and employees both contribute to the social security system at different rates. Employers typically contribute between 12.04% and 14.99% of an employee's gross salary.
Employers and employees both contribute to the country's health-care system, which is regarded as one of the best in Europe. This government-funded system provides all citizens with basic medical coverage. Employers and employees each pay half.
As of 2021, the corporate tax rate on all taxable profits is 24.94%.
Companies that wish to expand their operations globally have four different payroll options in Luxembourg. These payroll options are:
1. Internal Payroll. This payroll option is applicable for already established companies in Luxembourg. It includes devoting an entire Human Resources staff to running the company's payroll procedures.
2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.
Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.
3. Luxembourg payroll outsourcing: Outsourcing your payroll to an Employer of Record in Luxembourg, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!
It is the obligation of the employer to ensure that all payroll-related transactions are properly documented and recorded. All salaries and compensation payments must adhere to the local minimum wage as well as other applicable laws and regulations.
Rivermate's payroll services in Luxembourg can assist you in staying in compliance with the country's ever-changing payroll rules. We provide an all-inclusive solution that covers everything from compliance and reporting to salary payments.)
Companies that have a business presence in Luxembourg have different ways of managing payroll. However, most of the options you have for running payroll in Luxembourg are either expensive or require establishing a subsidiary in Luxembourg. The cheapest, most efficient, and most reliable payroll processing system in Luxembourg is by outsourcing payroll to Employers of Record (EOR) in Luxembourg. Rivermate is one of those Employers of Record.
At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Luxembourg. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Luxembourg. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.
Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Luxembourg.
Termination must be in writing in Luxembourg, however neither party is compelled to give a reason unless the cause is instant dismissal. This information, however, must be disclosed upon request.
Employers with more than 150 employees are required to have a hearing before dismissing an employee. Employers must notify the Economic Committee of the discharge of employees with at least 15 employees.
The minimum wage is 2,201.93 EUR per month. The minimum wage for a skilled worker has been increased by 20%, bringing it to 2,642.32 EUR.
The standard workweek consists of eight hours per day, five days a week. The workweek is limited to 48 hours, and employees are not permitted to work more than 10 hours in a single day. Sunday is a prohibited day of work, with the exception of certain jobs and tasks that cannot be performed at other times.
These restrictions do not apply to certain categories of employees, most notably executives and senior management personnel who play a critical role in ensuring the business's proper operation.
Night shift employees (10 p.m. to 6 a.m.) are entitled to a premium.
Luxembourg has one of the finest healthcare systems in Europe. The nation offers a high level of state-funded healthcare, and the healthcare system provides all people with basic medical coverage. Furthermore, all citizens have the freedom to choose their own doctor, specialist, and hospital. Luxembourg's Union of Sickness Funds is in charge of the country's health-care system.
Everyone working in Luxembourg must be a member of one of many insurance funds, depending on their profession. The majority of Luxembourgers get private supplementary insurance to cover expenses not covered by the public healthcare system.
Through healthcare taxes, all employed citizens and workers pay to this system. The maximum amount is 6,625 EUR. Employees and employers each pay half.
Many Luxembourgers get supplemental insurance via one of the Ministry of Social Security's non-profit health insurance organizations or mutual societies (mutuelles). Many companies provide supplemental insurance as a perk of the job. A mutuelle covers the part of your medical expenses not covered by national health insurance and may provide expanded coverage for hospitalization, eye care, dental treatment, and medical services outside of Luxembourg.