Good to know!
If you work in Luxembourg, or have worked in Luxembourg, you probably know all of this already.
But, for everyone else, whether you work abroad or are still a student, this information could prove useful to you to make life in Luxembourg a little bit easier.
Working in Luxembourg: Key questions
What are the requirements to work in Luxembourg?
To fill a paid position, you must be a European Union citizen, or have a valid work permit.
Do I have to be a Luxembourg resident?
In short: No. Living in Luxembourg is linked to certain advantages (integration, national institutions, multicultural atmosphere, etc.), but it comes at a premium (high real estate costs). Sharing an apartment is a definitely a viable possibility. It’s up to you to make your own choice – shorter daily commute, but higher costs, or longer daily commute, but lower costs.
How long is the work week?
The work week is fixed at 40 hours-a-week. You have a right to 25 holidays as standard, with additional days a possibility depending on your position and the sector in question.
How does the retirement system work?
The retirement age in Luxembourg is 65. To receive a full pension, 40 years of pension payments are required, with a minimum of 10 years of work.
What is the social security system like?
Working in Luxembourg means you will pay into the country’s social security plan, and you will receive an identification number. You can always get additional health insurance to cover any costs not covered by the Caisse Nationale de Santé. If you are not a resident, there are agreements in place with bordering countries that allow you to choose whether to benefit from the Luxembourgish health service or that of your country of residence.
What is the tax system like?
Tax is retained at source. Your net salary on your payslip takes tax into account. Every year, you will receive a tax card stating your situation, which you will give to your employer. In certain cases, you may have to supply a detailed declaration in addition to the standard tax retained at source. If you reside abroad, you will have to supply a tax declaration in your country of residence, clarifying money earned in Luxembourg and all money earned elsewhere.
I have children; what advantages are on offer?
Whether resident or not, you are eligible to receive a child allowance and tax benefits. Amounts and practical modalities can be found on the CNPF website.
E.g.: 1 child: child allowance 185,60€/ month; tax benefit: 76,88 €/ month
Bank, insurance provider, mobile phone plan, do I have to change them all?
It all depends on your situation. If you are a Luxembourgish resident, some changes are necessary or, at least, highly advisable (insurance, bank account, etc.). If you reside abroad, the choice comes down to what is most practical for you. Having a Luxembourgish bank account will facilitate certain elements of your life greatly (ING Luxembourg, for example, offers a free online service for bordering countries). Plans are being drawn up for mobile phone plans including data and communication across numerous countries.
Some helpful links if you want a bit more information.
- Luxembourg.lu (votre portail d’entrée au Luxembourg)
- Caisse Nationale de Santé
- Caisse Nationale des Prestations Familiales
- Agence pour le développement de l’emploi
- ING Luxembourg (ouverture d’un compte gratuite online)
- Immotop (portail immobilier)