The active population in figures

Note: (e) Estimated data

Working conditions

Legal weekly duration

The Law allows for a duration of 40 hours per week and 8 hours per day. The daily working time may not exceed 10 hours.

Retirement age

65

Working contracts

Employment contracts are regulated by law. Collective agreements and individual negotiations complement it.
The terms of the employment contracts are very rigid.

A work contract is either signed for an indeterminate period (Contrat à Durée Indéterminée/ CDI), which it is most often the case, or for a fixed term (Contrat à Durée Déterminée/ CDD). The CDD cannot last more than 24 months, including renewals. It can only be renewed twice and only if the initial contract includes a renewal clause. The Law strictly defines the framework of using a fixed-term contract. It is contracted for the accomplishment of precise and temporary tasks in a company.

Cost of labor

Minimum wage

The Law fixes a Minimal Social Salary (SSM) applicable to all employees. The rate depends on the age and skills of the workes: it is 100% for unskilled workers aged 18+, 75% for employees aged between 15 and 16 years and 80% for employees aged 17. Skilled workers of more than 18 years of age profit from a 120% rate. This amounted 1,503 EUR (USD1,968 ) for unskilled workers and 1,804 EUR (USD2,363) for skilled workers.

Social contributions

Social security contributions paid by employers: 12% for an employee and 14.86% for a worker.
Social security contributions paid by employees:

11,80% pour un employé et 14,05 % pour un ouvrier. 11.80% for an employee and 14.05 % for a worker.

Social partners

Social dialogue and involvement of social partners

Luxembourg enjoys a rather calm social climate. The majority of industrial workers are associated with the dominant political party.  Trade unions are active in several fields but they mainly defende union interests in collective negotiations during meetings with the employer, public and social authorities. They also provide free judicial aid.

Unions

LCGB
OGBL

Unionization rate

Around 50% in 2007.

Labor regulation bodies

Ministry of Labour
Federation des Industriels Luxembourgeois (FEDIL)