Work Luxembourg

For employment in Luxembourg, citizens of countries outside the European Union need to obtain a work permit and residence permit.

Finding an employer and receiving a job offer: Before starting the paperwork, you need to find an employer in Luxembourg willing to hire you. The employer must register the vacancy with the National Employment Agency and ensure there are no suitable candidates in the local labor market. If no suitable candidate is found within 3 weeks, the employer may offer the position to a foreign applicant.

Request for a temporary residence permit: After receiving a job offer, you must apply for a temporary residence permit at the Department of Foreign Affairs of the Ministry of Foreign and European Affairs of Luxembourg. The application is submitted before entering the country. The following documents must be attached:

- A copy of a valid passport.

- Birth certificate.

- Copies of diplomas and certificates proving qualification.

- Resume and cover letter.

- Certificate of no criminal record.

- A copy of the employment contract, signed by the employer and the employee.

- Confirmation from the National Employment Agency regarding the vacancy registration.

- Health insurance.

- Two recent passport-sized photographs.

- A cover letter justifying the reasons for moving to Luxembourg.

Obtaining a D-type visa: After the temporary residence permit is approved, you must apply for a national D-type visa at the Luxembourg consulate or embassy in your country, which allows entry into the country for long-term residence.

Arrival in Luxembourg and registration: Upon arrival in Luxembourg, you must register at the municipality of residence within 3 working days by submitting a declaration of arrival. Then, within 90 days, you need to undergo a medical examination and apply for a residence permit.

Special provisions for highly qualified specialists (EU Blue Card):

Highly qualified specialists can apply for an EU Blue Card, which provides additional benefits. For this, you need to:

Have a higher education degree or at least 5 years of professional experience.

Receive a job offer with a salary of at least 1.5 times the national average annual salary (in some cases — 1.2 times the average).

Meet other requirements similar to the standard procedure.

It is recommended to familiarize yourself in advance with the current requirements for obtaining a work permit in Luxembourg and, if necessary, seek advice from experts.

For EU citizens

Freedom of movement and employment: Citizens of EU countries, as well as Iceland, Liechtenstein, Norway, and Switzerland, have the right to reside and work in Luxembourg without the need for a special work permit.

Registration at the place of residence: After arriving in Luxembourg, EU citizens are required to register at the local commune (municipality) at their place of residence within a specified period. This is a standard procedure confirming their residence in the country.

For third-country nationals: It is necessary to obtain a work permit and a residence permit.

Preparation of resume and cover letter

Well-prepared resumes and cover letters play a crucial role when applying for vacancies in Luxembourg. It is recommended:

Resume:

Draft it in English and/or French.

Structure the information into sections: contact details, education, work experience, personal projects, skills.

Fit the information on a single A4 page.

Use standard fonts (e.g., Times New Roman or Arial) and clear headings.

Cover letter:

Address it to a specific employer.

Mention the position you are applying for.

Briefly describe your experience and motivation.

Adhere to a formal-business style.

A structured and concise resume increases the chances of a positive response from the employer.

Job Search

There are several effective ways to search for jobs in Luxembourg:

Online Platforms:

Local sites: JobLuxembourg, Monster Luxembourg.

International platforms: LinkedIn, Indeed.

Social networks and messengers:

Professional groups on LinkedIn and Facebook.

Telegram channels dedicated to job vacancies in Luxembourg.

Government employment services:

National Employment Agency: provides information on job openings and consultations for job seekers.

Recruitment agencies:

Local and international recruitment companies specializing in staffing in Luxembourg.

Submitting an application and passing an interview

- After finding a suitable vacancy, it is necessary to send a resume and a cover letter.

- Prepare for the interview: In Luxembourg, the selection process may include several stages of interviews, so it's important to be ready for a lengthy process. citeturn0search0

Employment in Luxembourg requires meeting certain criteria that may vary depending on the applicant's citizenship and the specifics of the vacancy.

Language requirements

Luxembourg is a multilingual country with three official languages:

Luxembourgish: widely used in everyday life and the public sector.

French: used in legal and business spheres.

German: common in media and education.

Knowledge of one or more of these languages significantly increases the chances of employment. In international companies and certain sectors, such as information technology and finance, English may also be in demand. However, proficiency in local languages remains a substantial advantage.

Qualification and education

Employers in Luxembourg value high qualifications and relevant education. To confirm professional competence, the following may be required:

Diplomas and certificates: attesting to education and professional training.

Professional experience: having work experience in the relevant field.

References: letters from previous employers or mentors.

In some cases, recognition of foreign diplomas in Luxembourg may be necessary.

Professional skills

Depending on the industry, specific skills and knowledge may be required. For example, in the IT field, programming and project management skills are valued, while in the financial sector, knowledge of international standards and regulations is key. Understanding local legislation and business culture is also an advantage.

Social and cultural aspects

Luxembourg is a multicultural country, and the ability to adapt to a multilingual and multicultural environment is an important factor. Flexibility, openness to new cultures, and the ability to work in international teams increase the chances of successful employment.

With a dynamic economy, Luxembourg offers diverse employment opportunities for both skilled and unskilled workers.

Skilled labor

There is a high demand for specialists in the following sectors in Luxembourg:

Information Technology (IT): Software development, cybersecurity, and IT research are among the leading directions. The demand for IT specialists is constantly growing, as evidenced by a significant number of vacancies in this field.

Financial sector: Accounting, financial analysis, bank client management, and credit risk analysis are key positions in demand in banking and finance.

Engineering and industry: Management and engineering research, industrial development, production management, and equipment maintenance require qualified engineers and technical specialists.

Healthcare: Nurses, care assistants, and psychologists are in demand in Luxembourg's healthcare system.

Unskilled labor

For workers without special qualifications, there are opportunities in the following areas:

Construction: Construction workers.

Hospitality: Kitchen staff, waiters, and restaurant service employees.

Agriculture: Seasonal work, such as harvesting, offers opportunities for unskilled workers.

Care and household services: Nannies, caregivers, and housekeepers are in demand in private households.

Luxembourg's pension system is characterized by generous payments and stability, ensuring a decent standard of living for retirees.

Structure of the pension system

The Luxembourg pension system is based on three components:

State pension: Funded by contributions from workers, employers, and the state. Each party contributes 8% of the worker's salary, totaling 24% of the gross salary.

Private pension plans: Additional savings formed through private pension funds or insurance companies.

Corporate pension schemes: Offered by some employers as additional pension provision for employees.

Retirement conditions

Age: The standard retirement age is set at 65 for both men and women. However, early retirement is possible:

From 57 years if contributions have been paid for 40 years.

From 60 years with a minimum contribution period of 20 years.

Work experience: A full pension requires 40 years of work experience. With less experience, the pension amount decreases proportionally to the missing years.

Pension amounts

Minimum pension: Granted after 20 years of work experience and amounts to approximately 1,968 euros per month.

Average pension: Retirees with full experience receive an average of about 3,900–4,000 euros per month.

Maximum pension: Can reach 8,500 euros per month, depending on earnings and length of experience.

Features for foreign workers

Foreign citizens working in Luxembourg are entitled to pension payments under certain conditions:

Minimum experience: To receive a partial pension, one must work in the country for at least one year.

Export of pensions: Luxembourg allows receiving a pension outside the country. When relocating permanently to another country, one can continue receiving a pension or, in some cases, withdraw accumulated funds.

Luxembourg has a developed social insurance system providing a wide range of social benefits and services for its citizens and residents. The main types of social insurance include:

Pension insurance

The Luxembourg pension system provides old age, disability, and survivor's benefits. Funding comes from contributions by workers, employers, and the state. The minimum pension is granted after 20 years of work experience, and the full pension after 40 years, upon reaching 65.

Medical insurance

All Luxembourg residents are entitled to medical care financed through contributions to the social insurance fund. Workers, employers, the self-employed, retirees, and the unemployed must make contributions that cover 80–90% of total medical service costs.

Accident insurance at work

This insurance provides protection in case of work-related injuries or occupational diseases, offering compensation and medical assistance to affected workers.

Unemployment insurance

Luxembourg's social security system provides unemployment benefits for those who have lost their jobs. The amount and duration of benefits depend on work experience and previous earnings.

Family benefits

Luxembourg offers various family benefits, including child allowances, birth allowances, and education allowances. These measures aim to support families and encourage birth rates.

Care insurance

This type of insurance provides support to those who require long-term care, offering financial assistance for home care services or specialized facilities.

Dismissal

In Luxembourg, employment relationships can be terminated at the initiative of either the employer or the employee. Key points include:

Notice: The notice period depends on the length of service and can range from 2 to 6 months. The employer must notify the employee in writing, stating the reasons for dismissal.

Reasons for Dismissal: Dismissal must be justified and can be related to employee conduct, economic reasons, or other factors.

Compensation: In some cases, the employee is entitled to compensation upon dismissal, the amount of which depends on the length of service and the conditions of the employment contract.

Annual Leave

Employees in Luxembourg are entitled to paid annual leave. Key provisions include:

Duration: The minimum duration of leave is 26 working days per year.

Leave Planning: Employees can choose their preferred leave period at their discretion, but must consider business needs and coordinate dates with the employer.

Unused Leave: Employees must use their full annual leave during the relevant year. Unused leave days may be forfeited unless otherwise stipulated by a collective agreement or company internal rules.

Parental Leave

Luxembourg legislation provides for parental leave for parents. Key aspects include:

Duration: Parental leave can be granted for a specific period established by law, depending on the child's age and family circumstances.

Eligibility Conditions: Parents are entitled to parental leave if certain conditions are met, including minimum employment tenure and notification of the employer within a specified time frame.

Compensation: During parental leave, an employee may receive an allowance, the amount of which is determined by law and depends on previous earnings.

Public Holidays

Luxembourg has established official public holidays during which employees are entitled to rest. Key provisions include:

Number of public holidays: There are 11 official public holidays in the country.

Holiday Pay: If an employee is required to work on a public holiday, they are entitled to additional compensation or time off, depending on the terms of the employment contract and collective agreements.

Main professional unions in Luxembourg

Independent Luxembourg Trade Union Confederation: The largest union representing the interests of workers in various sectors, including industry, services, and the public sector; actively participates in negotiations with employers and the government, aiming to improve working conditions and social safeguards.

Luxembourg Confederation of Christian Trade Unions: The second-largest union, focused on protecting workers' rights based on Christian values; actively operates in sectors such as healthcare, transportation, and construction.

General Confederation of Civil Servants: Specializes in representing the interests of public sector workers, including teachers, police officers, and administrative staff.

Role and functions of trade unions

Representation of workers' interests: Trade unions conduct collective bargaining with employers to improve working conditions, increase wages, and ensure social safeguards.

Legal support: Provide legal assistance to members in cases of labor disputes, dismissals, or labor law violations.

Training and information: Conduct seminars and training sessions, informing workers about their rights and responsibilities, as well as changes in labor legislation.

Social protection: Participate in the development and implementation of social programs aimed at improving the welfare of workers and their families.

Membership in a trade union provides Luxembourg workers with additional guarantees and support in protecting their labor rights and interests.

Luxembourg offers several forms of business entities, the most popular of which are:

Limited Liability Company (Société à Responsabilité Limitée, SARL): The minimum share capital is 12,000 euros. A SARL can have from 1 to 100 shareholders, who are liable up to the amount of their contributions.

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Simplified Limited Liability Company (SARL-S): Minimum share capital — from 1 euro. Intended for small businesses and can only be established by individuals.

Joint Stock Company (Société Anonyme, SA): Minimum share capital – 30,000 euros. Requires at least one shareholder; shares may be transferable.

Taxation

Luxembourg offers a competitive tax environment:

Corporate Income Tax: The rate is 18%, plus a 7% solidarity surcharge, totaling 19.26%. Additionally, a municipal business tax is levied, the rate of which depends on the company's location (for example, in Luxembourg – 6.75%). The total effective profit tax rate can reach 26.01%.

Value Added Tax (VAT): The standard rate is 17%, one of the lowest in Europe; there are reduced rates of 14%, 8%, and 3% for certain goods and services.

Licensing and Permits

Certain activities require a special business permit. This applies to commercial, craft, and some professional sectors. The applicant must confirm their professional qualification, reliability, and possesses suitable premises for conducting business.

Social Security and Labor Legislation

Employers are obliged to register employees in the social security system and pay the corresponding contributions. Luxembourg's labor legislation strictly regulates hiring, dismissal, working hours, and vacations, ensuring the protection of workers' rights.

Banking System

Luxembourg is known for its reliable and developed banking system, which facilitates account opening and international financial transactions. However, the process of opening a bank account can be meticulous and requires detailed information about the company's activities and its beneficiaries.

Overall, Luxembourg offers favorable conditions for conducting business, combining a stable economy, advantageous tax environment, and government support. However, successful business operations require strict compliance with local laws and regulations.