The complete guide to working in Luxembourg (2025 edition)

Do you want to work in Luxembourg and take advantage of its many advantages?

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Whether it is for its dynamic job market, its attractive salaries or its proximity to other countries, Luxembourg attracts thousands of foreign professionals every year (only cross-border workers in Luxembourg represent around 220,000 people, including 120,000 of French nationality).

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With one of the lowest unemployment rates in Europe, Luxembourg offers a wide range of professional opportunities. Its booming job market attracts qualified candidates looking for a stable and prosperous professional environment.

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Why does this place located in the heart of the European Union attract so many candidates? What is so special about it? How qualified do you need to be? What is the way to achieve this and get the job of your dreams? In this article, we will facilitate your job search and explain everything you need to know to get a job in a company in Luxembourg. Discover our content!

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Why work in Luxembourg?

The economic advantages of working in Luxembourg

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You as we know very well: Luxembourg is known for its high salaries. First of all, the Luxembourg minimum wage is 2,638 euros gross (as of 1 January 2025), the highest in Europe. If we compare the different wage bases, the small country is far ahead.

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In terms of taxation, the country also has its advantages. Luxembourg taxation is based on several factors:

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• Progressive tax rates: The country applies progressive income taxation, which allows workers to benefit from competitive tax rates compared to neighboring countries.
• An attractive tax system for cross-border workers: tax residents can optimize their taxation thanks to specific deductions and allowances and cross-border commuters benefit from advantageous tax agreements with their country of origin.
• Supervised social security contributions: even if salaries are high, social security contributions remain moderate compared to the social benefits provided (health, pension, family allowances).
• Tax exemptions and reductions: certain expenses can be deducted from taxable income, such as transportation costs, insurance or even mortgage interest.

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Finally, Luxembourg offers a very efficient social security system : comprehensive coverage (retirement, care, unemployment and work accidents), rapid and high-quality access to care as well as generous social benefits (for example, high family allowances or paid parental leave, for residents and cross-border workers).

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Quality of life

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We can say that the living environment is rather very pleasant in Luxembourg. The quality of public services will surprise you! In addition, the proximity to France, Germany, Belgium offers an ideal working environment for those who want to work while traveling when possible.

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The country also has a very high security and very low crime rate, something that many foreigners or cross-border workers take into account when it comes to settling in a new country.

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Working in Luxembourg means offering yourself a calm and pleasant living environment.

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Job market and professional opportunities

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Luxembourg is the European headquarters of many international companies : banks, reputable audit firms, large groups... if you want to work in Luxembourg, you will be more likely to find yourself in the following sectors:

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• Finance: the country is a financial hub.
• Health: the demand for health professionals is rising sharply.
• Tech: in recent years, start-ups in Luxembourg have been booming (discover https://www.siliconluxembourg.lu/)

Administrative procedures for working in Luxembourg

Procedures and administrative documents to be in good standing

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There are a few conditions to anticipate before being able to come and work in Luxembourg:

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• First of all, for residents of the European Union or Switzerland, the Permit is not mandatory. However, you must register with the municipality of residence if you move to Luxembourg. For non-EU residents, you are required to obtain a temporary residence permit in order to enter the country, followed by an employed residence permit once you are hired.
• As for the employment contract, a contract in accordance with Luxembourg law is mandatory. It can be for a fixed term (CDD) or for an indefinite period (CDI).
• The employer must register the employee with the Joint Social Security Center (CCSS) from the first day of work in order to access social benefits (health, pension, unemployment, unemployment, family benefits).

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So, if you are a cross-border worker, you will not need a work permit. You will declare your income in Luxembourg and will be registered with Luxembourg Social Security.

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If you are a resident worker, you must register at the municipality of residence within 8 days after your arrival, as well as register with the National Solidarity Fund to access social assistance if necessary.

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If you are from outside the EU and want more information about VISAS, here is the linkage who will guide you in these steps.

The specificities of Luxembourg social security

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Luxembourg has a universal Social Security system covering:

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1. Illnesses and maternity: medical expenses are taken care of and reimbursed quickly
2. Retirement: the contribution is mandatory and the pension is based on the salary and the duration of the contribution
3. Accidents at work: in this case, you have full coverage if the accident occurs at work or on the way
4. Family benefits: you will be entitled to a high amount for dependent children (whether you are residents or cross-border workers)

Finding a job in Luxembourg when you are a foreigner

Where to look for a job?

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Finding a job is never easy! In order to simplify the procedures, there are companies and platforms dedicated to this mission:

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• Job boards: platforms such as AlleyesonMe.Jobs, Linkedin, Indeed, or Jobs.lu are a great way to explore opportunities.
• Local recruitment agencies: do not hesitate to ask for information at Skeeled.com, The Recruiter, Hays, LHH, LHH, Manpower or Randstad Luxembourg.
• Do not hesitate to take a look at networking events or to participate in a trade show, which offers great opportunities. It is a concept that is very much appreciated by Luxembourg.

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Working conditions in Luxembourg

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Luxembourg offers numerous advantages in terms of working conditions.

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Luxembourg wages are among the highest in the European zone, with a gross minimum wage of more than 2,637.79 in all sectors combined.

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In addition, the country offers 26 vacation days per year and a 40-hour week. This is more than in France, but much less than in other countries of the European Union. There is also a regulated framework for overtime.

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Finally, as mentioned above, social protection is very attractive and its advantages are superior to European neighbours.

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The rights of foreign workers

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Foreign workers enjoy the same rights as Luxembourg residents, with some nuances. For example, employers must respect the same working conditions and remuneration for all workers and in all trades. Foreign workers are also covered by Social Security. The difference is in taxation, which may vary depending on the agreement between Luxembourg and the territory of origin.

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Also, if you want to do an internship or be in the process of obtaining an interim contract, know that the rules are different. Depending on the duration of the contract and other criteria, your internship or interim contract will have varied rights. To find a job under this type of contract, do not hesitate to filter your request hither.

Mistakes to avoid

Common administrative pitfalls

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The idea here is really to optimize your administrative preparation and avoid compromising your hiring. Some of the most common mistakes are:

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• The work permit is incomplete or incorrect: make sure you have all the necessary authorizations according to your situation.
• Tax management is not suitable: in the duchy, this part is very important. You will need to find out about the taxation applied to residents and cross-border workers to avoid unpleasant surprises.
• There is a lack of information about Social Security: the advice we can give you and to research your rights is necessary to get the help you need.

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Underestimating the cost of living

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Be careful, earning a good salary does not mean that you are not going to spend a lot of money on your daily life. Indeed, the cost of living is on average higher than in other European countries, especially for housing.

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That's why around 220,000 cross-border workers, including 120,000 French, 50,000 French, 50,000 Belgian and 50,000 German, cross the border every day (meaning that this method has an impact on your taxation).

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Our advice: don't forget to assess your gross salary, based on the cost of housing, transport or even insurance to avoid getting into trouble.

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Mistakes during job interviews

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To work with thousands of companies in Luxembourg, here is our advice for a successful application:

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• You'll need to learn about the company and the position: recruiters value well-informed and proactive candidates. To do this, go to the company website or to our site Alleyesonme.jobs.
• You will have to highlight your competence: do not hesitate to mention your strengths in connection with the position
• Compulsory in Luxembourg: speak several languages. Recruiters will most likely do tests during the interview, be prepared, because they will want to see what you are capable of!

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You are now ready to build your network, find your qualified job and stay in Luxembourg. If you are looking for a new activity, if you are looking to discover the professional world of Luxembourg, do not hesitate to apply by consulting our site hither.

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Frequently asked questions

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Can a foreigner work in Luxembourg?

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Yes, provided you have the necessary documents and meet the administrative requirements.

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What are the advantages of having a job in Luxembourg?

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Competitive wages, good social protection and a dynamic job market.

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Can you work in Luxembourg and live in a neighbouring country?

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Yes, many French, German or Belgian people cross the border every day. There will be a tax difference if you work in Luxembourg but live outside the Grand Duchy. Our advice: ask the authorities in your country of origin to see what your profile corresponds to.

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