Employer of Record (EOR) in Luxembourg: how to succeed? Entrepreneurship thrives in Luxembourg, thanks to a highly favorable political, social and economic environment. Many jobs are filled by cross-border workers and immigrants. The number of French people working as portage salarial in Luxembourg continues to multiply. Working with an Employer of Record in this country means enjoying numerous social and tax benefits.

« Clothes don’t make the man », and a country’s size is no indication of its wealth. With a small surface area of 2,586.4 km2, Luxembourg has the richest population in the world, according to the International Monetary Fund’s (IMF) World Economic Outlook. The socio-economic context of this small European country, bordered by Belgium, France and Germany, enables companies of all sizes to grow and secure their business, and favors international freelance activity. The fact that Luxembourg boasts a highly qualified and bilingual workforce are also features that contribute to the country’s status as a preferred employment destination for international organizations. Success with an EOR in Luxembourg is possible with SKALIS (EOR). Here’s our advice.


The Luxembourg job market

Also affected by the health crisis since 2020, companies based in Luxembourg are reviewing their recruitment policies. The use of freelance consultants is on the increase, slowing down the creation of permanent jobs. This situation favors EOR umbrella companies in Luxembourg. A great opportunity for independent professionals.

The high levels of remuneration in Luxembourg reflect the country’s overall wealth. Indeed, the Grand Duchy has the highest GDP per capita in the world. The country’s legal framework also encourages the creation of new jobs. The number of jobs is particularly high, which justifies the low unemployment rate. Political stability is further enhanced by the country’s conviviality and social peace. The country also has an Economic Committee to monitor the key sectors of the local economy.

Many professionals from neighboring countries come to Luxembourg to work. Almost half of them come from France. The workforce is fluent in French, Luxembourgish and German. The proportion of highly qualified professionals is particularly high in the country.


The advantages of EOR freelance administration in Luxembourg

Working with an EOR has many advantages for freelancers and consultants :
● Their sources of income can be diversified by engaging in different activities.
● They can also dispense with the administrative procedures involved in setting up and accounting for a new business.
● The ability to define one’s own work rhythm is also part of the benefits derived from freelance portage.
● Consultants can select the assignments they will be in charge of. They are also entitled to unemployment insurance if they stop working.

In Luxembourg, these benefits are far more extensive. EOR service represents an alternative to self-employment and the usual remuneration system. Self-employed professionals now enjoy the same benefits as salaried employees. They can concentrate on their business, leaving the administrative formalities to an accredited and competent « portage » company like SKALIS (EOR).
« Portés » employees can also benefit from higher net remuneration, with taxes deducted at source. Employee and employer contributions also account for 26% of earnings. By way of comparison, this rate is around 75% in France.
For companies wishing to develop their business in Luxembourg, using an EOR also offers significant advantages. Working through SKALIS (EOR) saves companies time, money and energy, reduces risk and simplifies human resources processes.


Using an EOR also includes the following advantages:

● no need to set up a local legal entity to recruit international employees ;
● local experts specialized in tax laws and regulations;
● full control over statutory benefits at local level;
● rapid integration of new employees;
● protection of intellectual property ;
● less risk of contract requalification;
● fewer administrative tasks to manage.
● more time to focus on the company’s development and success.

For a company with a worldwide workforce, an EOR can be a partner of choice.

Working in Luxembourg as a third-country national and cross-border commuter

With so many advantageous conditions to choose from, many French cross-border workers opt for EOR portage salarial in Luxembourg. However, third-country nationals (from outside the European Union and related countries – Iceland, Norway, Liechtenstein and Switzerland) authorized to reside legally on the territory of another EU member state or related country must apply for a work permit to work in Luxembourg without residing there. An exemption from the work permit requirement may be granted to the spouse or child of an EU or assimilated country citizen already working in Luxembourg.

Luxembourg companies offer very attractive packages. French workers residing in France, but carrying out assignments in Luxembourg, represent a special case. Known as « travailleurs frontaliers », they travel to France at least once a week. Their status entitles them to social security coverage in Luxembourg. Thanks to SKALIS (EOR), which handles all the formalities with the Caisse nationale de santé in France, cross-border commuters can benefit from reimbursement of their healthcare costs in both countries.


What steps do I need to take to become a salaried employee in Luxembourg?

First of all, it’s essential to choose a Luxembourg-approved « umbrella company » like SKALIS (EOR). We play the role of employer and take care of all the administrative formalities. An employment contract is drawn up between the employee and SKALIS (EOR), defining the terms and conditions of the collaboration. The employee then provides the required documents, such as a CV, diplomas and professional liability insurance. Once these steps have been completed, the employee can start looking for assignments and working as an independent consultant, benefiting from the social and tax advantages offered by EOR freelance administration in Luxembourg.

SKALIS (EOR) simplifies your development in Luxembourg. Whether you’re an employer looking for a consultant for your company, or a self-employed person wishing to work in Luxembourg, SKALIS (EOR) can help you find the right person for the job. We can help you find your assignments or recruit the candidate of your choice, deal with human resources and payroll management issues, and ensure your compliance with local legislation. All this, without having to take on the responsibility of a foreign branch or subsidiary. Our expertise, already proven in many countries, means you can focus on running your business with peace of mind.