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Working conditions in Luxembourg: What you need to know

Looking for a fair, supportive and globally connected work environment? Luxembourg delivers — combining robust labour laws, competitive taxation, lifelong learning opportunities and a strong work-life balance in one of Europe’s most international workplaces.

Luxembourg work culture: Welcoming and international

Luxembourg blends global best practices with local traditions, creating an enriching professional culture. With nearly 75% of the workforce born abroad, you will collaborate with colleagues from around the world, gaining fresh perspectives and career opportunities. You can work in German, French or English — a unique feature that fosters innovation and inclusivity.

Promoting a high standard of living

Luxembourg’s progressive income tax structure includes rates from 0% to 42%, designed to ensure balanced contributions while maintaining one of Europe’s highest standards of living. Your tax contributions directly support Luxembourg’s exceptional public services – from free public transport and education to healthcare.

#2

highest disposable income globally

(World Population Review, 2025)

#5

in cross-border tax rules

(International Tax Competitiveness Index, 2025)

#1

highest purchasing power in the EU

(Eurostat, 2025)

A favourable work environment

Luxembourg offers a work culture that combines international diversity with balance and opportunity. From multilingual workplaces to strong worker protections and a commitment to lifelong learning, the country provides an environment where professionals can thrive.

Multilingual workplaces:
Most professional environments operate in multiple languages, often with English as the common business language, especially in international companies. Meetings might switch languages based on participants, and documents may be produced in different languages depending on their purpose.
Work-life boundaries:
Unlike some high-pressure financial centres, Luxembourg maintains a strong separation between work and personal life. Extended hours are not the norm, and weekend work is unusual outside specific sectors or roles. Respecting colleagues’ personal time is considered professional courtesy.
Continual learning:
Lifelong learning is central to Luxembourg’s work culture, supported by a national portal listing over 13,000 courses from 300+ training organisations. To promote continuous professional training, Luxembourg offers a number of incentives to individuals such as paid training leave, financial assistance or support for Luxembourgish language classes to acquire the Luxembourgish nationality.
Worker advocacy and rights:
Luxembourg has robust labour laws for every person working here regardless of nationality, prioritising both employee wellbeing and business growth. Luxembourg’s labour code is designed to promote work-life balance, with regulated working hours (typically 40 hours per week), generous paid leave and clear rules to prevent overwork.
Solid framework for disabled workers:
Working as a disabled person in Luxembourg offers strong legal protection, mandatory employer quotas for hiring and significant state support. This includes financial aid and job placement assistance through ADEM, the Public Employment Service in Luxembourg.

Luxembourg taxes and social security basics

Luxembourg’s progressive tax system offers clear guidelines and structured deductions, backed by economic stability and a strong financial infrastructure. Rates range from 0% to 42%, depending on income and tax class (single, married, with children, etc.). Employees and employers both contribute to social security. Benefits include comprehensive healthcare, family allowances, accident insurance and pension.

Luxembourg offers an attractive impartiate regime: eligible highly qualified professionals can benefit from a 50% tax exemption on annual salary, up to €400,000. One key condition is a minimum annual base salary of €75,000. This makes relocation smoother and financially advantageous. The regime is available for eight years.

The young employee bonus tax advantage allows for 75% of a bonus paid to young employees with permanent contracts who are under 30 years old and entering the Luxembourg labour market to be exempted from taxation.

Annual leave and holiday policies

Luxembourg has comprehensive leave policies that reflect its strong commitment to work-life balance. Here is an overview of standard holiday entitlements:

26

working days of annual leave

(minimum based on full-time work)

11

public holidays

(recoverable if they fall on a weekend)

Under certain conditions, employees are also entitled to other leave forms such as extraordinary, cultural, youth or sports leave.

Family-related leave

Parents benefit from advantageous leave options:

Maternity leave:
20 weeks (fully paid)
Paternity leave:
10 days (fully paid)
Parental leave:
Standard options are 6 months full-time or 12 months part-time per child and per parent (partially paid)
Family leave:
For caring for sick children (limited days per year)