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Luxembourg: Pay and benefits

Original and updating authors: Philippe Schmit, Louis Berns and Anne-Sophie Ott
Consultant editor: Patricia Hemmen


  • Employees' remuneration is automatically increased in line with inflation, under a statutory system of pay indexation. (See General)
  • Employees must be paid monthly and given a detailed payslip. (See Payment of wages)
  • Various rules govern the type and amount of deductions that may be made from an employee's pay. (See Deductions)
  • Employers are required to ensure equal remuneration for women and men for equal work or work of equal value, and pay discrimination is prohibited on various other grounds. (See Equal pay)
  • A statutory national minimum wage applies to all employees, with separate rates for skilled and unskilled adult employees, and for under-18s. (See Minimum wage)
  • All private-sector employees are mandatorily covered by the state pension scheme, which forms part of the social security system. (See Pensions)
  • Employers must withhold employees' income tax at source, and employers and employees must pay statutory social security contributions. (See Income tax and social security)
  • Employees who are absent from work owing to sickness or injury are entitled to receive their full remuneration from their employer, usually for up to 13 weeks per year. A statutory insurance scheme refunds 80% of the employer's sick pay costs. (See Pay for employees not at work)