Luxembourg Highlights:
- An EoR (Employer of Record) package is the most efficient and effective way to deploy local and foreign employees in Luxembourg.
- 1WB acts as an EoR ensuring full compliance with country’s regulations.
- The whole deployment process for foreigners takes about 3 weeks whereas for locals within 1 week.
- Handling payroll processing, immigration and taxes compliantly, swiftly and cost efficient.
- Income tax liability is based on the individual’s personal situation (e.g., family status) and for this purpose, individuals are granted a tax class. The three tax classes are as follows: Class1 is single persons, Class2 is married persons and Class1a for single persons with children.
- Corporation tax rate is 24.94% on a combined basis (corporation tax and solidarity surtax).
- Social security contribution rates that are in force:
| Employee Share | Employer Share | |
|---|---|---|
| Health Insurance | 3.05% | 3.05% |
| Pension Insurance | 8% | 8^ |
| Dependency Insurance | 1.40% | - |
| ASTF Contribution | - | €45 per employee per year |
| Accident Insurance | - | 0.75% |
- Work permit - 1WB can sponsor work permits for foreign employees and the processing time is about 4 weeks.