The Law allows for a duration of 40 hours per week and 8 hours per day. The daily working time may not exceed 10 hours.
Retirement age
65
Working contracts
Employment contracts are regulated by law. Collective agreements and individual negotiations complement it. The terms of the employment contracts are very rigid.
A work contract is either signed for an indeterminate period (Contrat à Durée Indéterminée/ CDI), which it is most often the case, or for a fixed term (Contrat à Durée Déterminée/ CDD). The CDD cannot last more than 24 months, including renewals. It can only be renewed twice and only if the initial contract includes a renewal clause. The Law strictly defines the framework of using a fixed-term contract. It is contracted for the accomplishment of precise and temporary tasks in a company.
Cost of labor
Minimum wage
The Law fixes a Minimal Social Salary (SSM) applicable to all employees. The rate depends on the age and skills of the workes: it is 100% for unskilled workers aged 18+, 75% for employees aged between 15 and 16 years and 80% for employees aged 17. Skilled workers of more than 18 years of age profit from a 120% rate. This amounted 1,503 EUR (USD1,968 ) for unskilled workers and 1,804 EUR (USD2,363) for skilled workers.
Social contributions
Social security contributions paid by employers: 12% for an employee and 14.86% for a worker.
Social security contributions paid by employees:
11.80% for an employee and 14.05 % for a worker.
Social partners
Social dialogue and involvement of social partners
Luxembourg enjoys a rather calm social climate. The majority of industrial workers are associated with the dominant political party. Trade unions are active in several fields but they mainly defende union interests in collective negotiations during meetings with the employer, public and social authorities. They also provide free judicial aid.
Labour market
Luxembourg
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The active population in figures | Working conditions | Cost of labor | Social partners
The active population in figures
Source: UN - United Nations ; World Bank
Note: (e) Estimated data
Working conditions
The terms of the employment contracts are very rigid.
A work contract is either signed for an indeterminate period (Contrat à Durée Indéterminée/ CDI), which it is most often the case, or for a fixed term (Contrat à Durée Déterminée/ CDD). The CDD cannot last more than 24 months, including renewals. It can only be renewed twice and only if the initial contract includes a renewal clause. The Law strictly defines the framework of using a fixed-term contract. It is contracted for the accomplishment of precise and temporary tasks in a company.
Cost of labor
Social security contributions paid by employees:
11.80% for an employee and 14.05 % for a worker.
Social partners
OGBL
Federation des Industriels Luxembourgeois (FEDIL)
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Last updates: February 2012