WORKING IN LUXEMBOURG
Conditions for entry and residence of the territory of the Grand-Duchy of Luxembourg
- Entry of the territory and residence for a period of less than 3 months
Citizens of the « Union » (originating from a member state of the European Union) and persons originating from an « assimilated country » (Norway, Iceland, Liechtenstein and the Swiss Confederation) as well as their family members, also citizens of the « Union » or originating from an « assimilated country », are granted the right to enter the territory of the Grand-Duchy of Luxembourg and to reside there for a period of up to 3 months, provided the possession of a valid identity card or passport.
The family members originating from a third country and accompanying or joining the citizen originating from the « Union » are granted the right to enter the territory of the Grand-Duchy of Luxembourg and to reside there for a period up to 3 months, provided the possession of a valid passport and, if applicable, the required visa.
- Residence for a period of more than 3 months
Citizens of the »Union » and persons originating from an « assimilated country » as well as their family members, also citizens of the « Union » or originating from an « assimilated country », wishing to reside in Luxembourg for a period of more than 3 months, have to get in touch with the “Administration communale” of their commune within 3 months starting from the day of their entry to the territory of Luxembourg in order to obtain the required attestation.
The family members originating from a third country will have to deposit a request for a « residence card for family members of a citizen of the “Union” or a person originating from a state having accepted the “Accord sur l’Espace économique européen” or from the Swiss Confederation ».
- Residence for a period of more than 5 years
After an uninterrupted residence period of 5 years, citizens of the « Union » or originating from an « assimilated country » are granted the right to unlimited residence in the Grand-Duchy of Luxembourg.
Family members having also resided in Luxembourg for an uninterrupted period of 5 years are granted the right to either receiving an attestation for unlimited residence, if they are citizens of the « Union » or originating from an « assimilated country», or to receiving a permanent residence card if they are originating from a third country. The respective applications have to be addressed to the minister responsible for immigration matters.
You will find more information on the internet site of the Ministère des Affaires Etrangères
The working permit in Luxembourg
No working permit is required for either citizens of the European Union, of the EEE and of the Swiss Confederation or for the spouses of Luxembourgish workers or refugees.
However, foreigners originating from non-member states of the European Union are required to obtain a working permit from the “Ministère du Travail”.
Since 20 September 2007, no working permit is required for persons originating from Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary and Slovenia.
The period of validity of a working permit may vary from one year to an undetermined period.
You will find more information on the internet site Portail Entreprise of the government of the Grand-Duchy of Luxembourg.
- Labour legislation
An employment contract has to be drawn up for each employee, in duplicate form, at the latest at the time of the commencement of work, one form being kept by the employer, the second form handed to the employee.
The contracting parties may agree upon a trial period.
The trial period agreed upon between contracting parties may not be inferior to 2 weeks and may not exceed 6 months.
The legal working time amounts to 8 hours per day and 40 hours per week. Part-time working may be agreed upon by the contracting parties.
The yearly holidays amount to a minimum of 25 days regardless of the employee’s age.
The minimum wage for qualified employees according to article L. 222-4 of the « Code du travail » amounts to 2.019,31 Euro per month from March 1, 2009 onwards.
- Social legislation
As an employee, you are required to sign up with the « Centre Commun de la Sécurité Sociale » in Luxembourg. In general, the employer takes care of this registration.
Since July 1st, 2004 a European Social Security card is given to employees. This card shows a national side – to be used in Luxembourg – as well as an international side – to be used abroad.
As this document includes the technical data used in every member state of the European Union, the card is immediately accepted by all service providers to whom it is presented.
The card is a certificate of guarantee for the assumption of the costs of medical care necessary during a stay abroad. It is valid in the member states of the European economic space, i.e. the European Union, Norway, Iceland, Liechtenstein and the Swiss Confederation.
- Fiscal legislation
Whether the tax payer is a resident or a cross-border commuter, he is submitted to certain fiscal regulations entailing some formalities with regard to various administrations.
The remuneration of a paid occupation is subject to the withholding tax considered as income tax. The withholding tax is applied for the employee’s account at each salary disbursement. Therefore, every employee is required to have a tax card (“fiche de retenue d'impôt", "carte de retenue d'impôt" or "carte d’impôt") and to deliver the card – after having checked the correctness of the data mentioned thereon – to his employer as the tax card provides the employer with the details required to correctly calculate and apply the income tax on the employee’s salary.
Should the employee not hand over his tax card to his employer, the later is forced to determine the amount of the due income tax on the basis of the highest possible salary of the applicable labour pact.
If the employee is a resident of the Grand-Duchy of Luxembourg – regardless of his nationality – he is given his tax card by the respective « Administration communale » whereas for non-residents, the tax cards are issued by the « Administration des contributions directes».
Residents of the Grand-Duchy of Luxembourg taking up for the first time a paid occupation are required to apply for a tax card at the « Bureau de la population » of their respective « Administration communale ».
Non-resident employees taking up for the first time a paid occupation in the Grand-Duchy of Luxembourg are required to send an application for a tax card to:
Administration des Contributions
Bureau R.T.S. non-résidents
Rue de Hollerich, 5
You will find further information regarding labour legislation, social legislation and fiscal legislation on the sites below:
Ministère du Travail et de l’Emploi : www.mte.public.lu
Sécurité Sociale Luxembourg : www.secu.lu
Administrations des contributions directes : www.impotsdirects.public.lu