Work overseas: The benefits you will get if you work in Luxembourg

Do you know Luxembourg is ranked 71^st among the world countries on the list of countries with the highest GDP as of 2021? It’s at 26^th among European countries on the highest GDP list. It’s a country that has a large population of immigrants. It’s a country you must consider to build a career if you are ready to work overseas in Europe.

Here, we will look at the benefit you will get if you work in Luxembourg.

Working hours and paid time off

The weekly working hours in Luxembourg are 40 hours. If employees take overtime, they will be entitled to additional wages.

Employees can take 25 days of paid holiday a year after they work for 3 months with an employer. The employees have to take paid leave during the calendar year applicable. However, it might be postponed to the next year in special circumstances.

Minimum wage

The national minimum wage in Luxembourg as of 2021 is €2,201.9 per month. This comes to €26,423 a year. The minimum wage of Luxembourg is one of the highest in the world. The age and qualifications of an employee decide the wages paid.

Tax rates

Income tax in Luxembourg is calculated on the basis of the personal situations of the individual viz. family status. There are 3 classes of taxes applied to individuals:

Class	Description
Class 1	Single person
Class 1a	·      Single persons with children ·      Single persons paying tax of age 65 or more on Jan 1 of the tax year
Class 2	·      Married persons ·      Civil partners (subject to particular conditions)

Here’s how tax rates are:

Single taxpayer (Class 1/Class 1a)

Taxable salaried income (EUR)	Income tax (including solidarity tax) (EUR)
	Class 1	Class 1a
20,000	921	0
38,700	5,317	4,271
58,000	13,081	12,325
77,400	21,177	20,420
96,700	29,231	28,474
116,000	37,456	36,699
135,500	45,802	45,045
155,000	54,242	53,486
205,000	76,642	75,885

Married taxpayer (Class 2)

Taxable salaried income (EUR)	Income tax (including solidarity tax) (EUR)
	Class 2
20,000	0
38,700	1,675
58,000	5,113
77,400	10,635
96,700	18,110
116,000	26,164
135,500	34,302
155,000	42,439
205,000	63,357

Table info credit taxsummaries.pwc.com

Social security

In Luxembourg residents who have contributed to the social security system of the country are given many benefits. These include services like unemployment benefits, public healthcare, pensions for veterans and widowers, and leaves like maternity leave, sickness leave, and parental leave.

If you are a starter worker you must have worked for a minimum of 26 weeks in the last 12 months to be eligible to get unemployment benefits. Your social security payments are cut from your salary every month.

Healthcare and insurance

In Luxembourg, you get reimbursement of medical costs under healthcare insurance. It covers any kind of compensation of leave that was taken for medical reasons.

Maternity Leave

In Luxembourg, maternity benefits are paid before and after childbirth. This will be as much as the maximum wage employees earn in the 3 months before taking maternity leave or commensurate to the contribution base prevalent for self-employed staff when the maternity leave was taken.

Parental Leave

Parental leave is available to the parents of children who are aged under 6 years. Both parents can stop working full-time for 4 or 6 months, if not part-time for 8 or 12 months. This leave will be taken with the consent of the employer. The law also offers you the option to take divided parental leave.

Sickness Leave

Every worker aged less than 68 years is entitled to sickness pay. This is for a period of no more than 78 weeks if the worker’s absence from work is owing to illness. This should be calculated within a 104-week reference period as of January 1, 2019. The employee gets paid directly by the authorities for Social Security from the month that comes after the month for which the employee reaches an absence from work of 77 days.

Sick employees on sick leave are saved from being dismissed for the first 26 weeks of their absence. As an employee, you may apply for an invalidity pension. This can be done you aren’t able to work even after the expiry of the sick pay period set by law.

Pensions

The normal old-age pension is granted in the usual course at the age of 65. To be eligible to receive this amount, you have to complete a 120-month contribution period. In this period, you must have made a compulsory, elective, or voluntary contribution towards insurance or purchase periods.

Work culture

In Luxembourg, tact and diplomacy are highly respected. In the organizations in Luxembourg, management takes an approach that emphasizes the increased participation of employees.

People in Luxembourg are pragmatic and sensible. They don’t appreciate assertiveness and harsh criticism. In Luxembourg, civility and charm are the norms.

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