Work in Luxembourg | Everything you need to know

Luxembourg is known for being an expensive country, but once you’re there you will realize it doesn’t differ so much from other big cities in Europe. It’s a small country with a flourishing economy and it’s considered to be the richest country in Europe. Although it’s small that doesn’t mean it lacks of variety, in Luxembourg you can have magnificent views while biking or hiking of many diverse landscapes, since greeny valleys of the Ardennes, or Minnet at the south with its red rocks, but also the regions of Mullerthal and Moselle have a beautiful scenery to offer for hiking activities. 

Basic Facts 

The capital of Luxembourg is the homonymous city of Luxembourg, it has 3 official languages, German, French and Luxembourgish which has much the same syntax and grammar as German, it has a small population of 672.275 inhabitants and around half of the population are expats. The official currency is the Euro (€) and it has the second highest GDP in the world, following Qatar.

5 Curiosities about Luxembourg

1. As said before, almost half the population in Luxembourg are expats, making it the country with the highest percentage of foreigners. Plus, the regulations regards nationality in Luxembourg are very flexible.
2. Locals speak 4 languages since in school they learn the 3 official languages, German, French and Luxembourgish, they have to learn the 4th one of free choice too.
3. Luxembourg produces the best wines, Crémant de Luxembourg, a high quality sparkling wine, won 22 gold medals in the Crémant Awards in 2015.
4. LGBT Friendly, Luxembourg is known for being a liberal country, since same-sex marriage, marijuana legalization and euthanasia are accepted and not considered controversial topics.
5. It’s the safest country in Europe and just comes second after Singapour worldwide.

Culture in Luxembourg

Luxembourg has their cultural treats originating from France more than Germany, they consider punctuality very important, they’re also very familiar since it’s a small country family tends to grow together and the obligation to one’s family is the first priority. It’s a strongly religious country with almost all the population being catholic, you can appreciate the church influences in their holidays and the hierarchical treatments.

The business culture in Luxembourg is very polite and based on respect. They have hierarchical treatments, in businesses they are prudent and careful so don’t like to rush things. Be careful about bragging, since this is considered poor breeding. It seems to be a strict country regards business but actually, people from Luxembourg are open to having personal relationships with co-workers, and being blunt is considered rude so even if they are honest to tell you something you may not like, they will try to do it as charm and politely possible.

Nightlife in Luxembourg is diverse, with nice parties, many minibars, cafes, pubs and clubs. You can enjoy terrace meetings, early evening hours and make plans to spend a nice time here.

Gastronomic Section

The Luxembourgish gastronomy has its influences in the finesse of French cooking and the heaviness of German cuisine, with small lightly breakfast at French style and heavy meals, however, the traditional food is based in their local ingredients like meats, sausages, cheeses, potatoes, cabbage or beans; it’s also well known for its wine production along with local productions of sausage, honey, cheese, and mustard. With the increasing expat community, the gastronomy in Luxembourg is slightly changing with Portuguese and Italian influences.

Between the famous dishes in Luxembourg we have:

• Bouneschlupp and Gromperenzopp (Green Bean and Potato Soup)
• Gromperekichelcher (Potato Pancakes)
• Bouchée à la Reine (Queen’s Morsel or Filled Puff Pastry)
• Letzeburger Kniddlelen (Luxembourg Dumplings.

Work in Luxembourg

Luxembourg’s active economy makes the job market in constant movement with job offers available so this is the perfect place in Europe if you want to burst your career. The economy is also very dynamic, you can see many workers comes from across the borders to work in Luxembourg during the day and then leave because of the higher income. The unemployment rate in Luxembourg is relatively low with just 6.3%, and the financial and services sectors are the leaders of the market right now. The majority of the workforce in Luxembourg are foreigners and 83% of them comes from European countries, so it’s not difficult to find a spot in the job market. Although it’s a multicultural country, we recommend you to learn a bit of German and French to settle up better, and of course, if you’re planning to stay and make a living in this country, you should start with the Luxembourgish language too.

The minimum wage in Luxembourg is divided between unskilled and skilled workers and is about €2.200 for unskilled workers and €2.600 for skilled workers. The working hours are 8 hours per day and 40 hours per week, and this may not exceed of 10 hours per day and 48 hours per week, the breaks are by law after 6 hours of work and only 1 break can be unpaid, but it’s often seen that companies have a fixed break and other breaks like cigarette breaks, breastfeeding breaks and coffee breaks; the annual leave is 25 working days per year.

Work in Luxembourg City 

Is the main economic sector of the country, expats are attracted to work here because of their high quality of life, the high salaries and the benefits, for example as a resident you are exonerated of transport fees, and the Nationality policies are very flexible which is making that many expats acquire the nationality. The steel industry has been leading the economy since the 19th century in Luxembourg but right now there are plenty of opportunities in the financial market and technological market and since Luxembourg offers tax incentives for the foreign investors the job market is always growing.

Taxes in Luxembourg

Income tax in Luxembourg is based on your income, income in the entire household and your marital status. There are three classes defined 1, 1a and 2, with the first two being prescribed for singles and last one for married individuals. The minimum salary to pay tax is €11 256 and dwellers earning less than that do not pay tax, the range of height of the tax varies from 0% to 42%. It covers social security contributions such as unemployment, pension, childbirth or illness. 

To know more, and find out e.g. how to apply for social security, visit this website, there you will find more useful information, which should solve your doubts. 

Finding accommodation in Luxembourg

Finding accommodation might seem a very difficult task, especially when you don’t know when and where to start. Talking about when – the earlier the better, if you have more time, you can see and compare more offers, and choose the best one. Ok, but first you have to find some offers to have something to compare. Most expats decide to look, of course, on the Internet. Find websites like this: athome.lu or this newimmo.lu and start searching for rentals in the area you are interested in as your future neighbourhood. 

People often say to live as close to your workplace as possible, however this tip does not necessarily apply for Luxembourg. When your work will be located in the city centre rental rates in the area are expensive. For a one-bedroom apartment there you can pay even around €1 600. A better idea would be to rent a room in a shared apartment or live somewhere further. Fortunately, public transport in Luxembourg is excellent and in most cases for free.

Once you start to work, quality of life will settle down, that is because salaries and wages in Luxembourg are fair and even if rent is the biggest expense among everyday living costs, it still  lets expats have a decent life. 

Living cost in Luxembourg

While telling stories about living and working in Luxembourg, many expats who live or had lived there start from the high cost of everyday expenses. In fact, costs don’t differ so much from other big cities in Europe. 

Indeed, grocery shopping might be slightly more expensive than in most of the European capital cities. It is good to know where to buy it, so you will save some money. The lowest prices are in Lidl and Aldi, the highest in local shops like Alima. But excellent news is that public transport is for free, with the exception for first-class train tickets. Taxis are another case, for every kilometre price is €3. To get an overview of more of daily expenses in Luxembourg, see the table below. 

*Les prix peuvent varier en fonction du quartier, du nombre de personnes vivant dans l'appartement et des équipements.

**Depends greatly on your diet and which shops you buy food and drinks from.

Expats in Luxembourg

Luxembourg is a multicultural country with half of their population being expats, but not only this makes this a multilingual country but their education towards children, in school you learn 4 languages, german, french and Luxembourgish is already the national language plus an additional language of your choice, and English is widely used and spoken in the country. People is very polite and respectful within each other and they are open-minded

Almost half of the population have foreign origins, so there’s a huge diversity, and multicultural environment in Luxembourg, the cosmopolitan vibes is part of living in Luxembourg and the quality of life is preserved despite the multicultural environment, and besides their economical benefits, is something that attracts more and more expats to make a living in this country.

Where to Learn Luxembourgish?

There are plenty of places to learn Luxembourgish once you live there, The government, non-profit organisations, local communes and schools, in addition to private companies and tutors, prices vary between €50 to €100 per course.

Pro-tip: If you sign a Welcome and Integration Contract (CAI) you get a reduced rate on language courses, free citizenship education courses and an orientation day to help with integration. You can do this in the Ministry of Family Affairs, Integration and the Greater Region

Why Here

Luxembourg is a multicultural country, it’s perfect for EU expats who wants to gain experience in the job market with a structural set of rules but also with the flexibility enough to enjoy their free time, and the quality of life is definitely something famous in Luxembourg, also as the heart of Europe you may find easier to travel to other countries from here, it hs very good working benefits and high salaries, plus the job market is always seeking for new employees. If you want to start your working journey in Luxembourg don’t hesitate to contact us so we can help you through the entire process.