PAYROLL REGULATIONS: LUXEMBOURG

Minimum wage

As a general rule, the salary is freely determined by the 2 parties when the employment contract is concluded.

Nevertheless, employers must respect the applicable social minimum wage according to the employee’s qualifications.

Salaries may be affected by 2 types of adjustment:

• an increase in the social minimum wage;
• wage indexation.

The salary may not be below the social minimum wage under any circumstances.

The social minimum wage is of EUR 2,201.93.

Working time

The standard number of working hours for employees is 8 hours per day and 40 hours per week.

The applicable collective agreement may set lower limits. The employer may determine a reference period of up to 4 months during which employees may be employed beyond the limits mentioned above.

In order to do so, the employer must set up:

• either a working hours plan (plan d’organisation du travail – POT);
• or flexible working hours (flexitime).

Minimum number of days/hours off:

In principle, the daily working time may only be interrupted by one unpaid rest period.

All workers must have a rest period of at least 11 consecutive hours during each 24-hour period and a rest period of at least 44 consecutive hours during each 7-day period.

Leave

Each employee (salaried worker) is entitled to a minimum of 26 working days of paid leave per year.

In principle, the leave is taken according to the employee’s wishes, as long as the justified needs and wishes of the other employees in the company are respected.

Any employee, including apprentices, whatever their working schedule (part time, full time, etc.) or type of contract (fixed-term or permanent), is entitled to paid annual leave.

A collective agreement or an individual agreement between the employer and the employee may include additional days of leave for the employee.

Certain categories of workers automatically benefit from additional holidays.

Notification requirement

Craft (food distribution, fashion, health, mechanical engineering, construction, communication, media, arts) or industrial businesses from the EEA or Swiss Federation must notify their provision of services to the General Directorate for Small and Medium-Sized Enterprises.

Businesses from the EEA or the Swiss Confederation falling under the category of commercial and liberal professions that are subject to a business permit (architects, engineers, chartered accountants, surveyors, patent attorneys, economic advisors) are exempt from any obligation of notification.