iGlobal Law

Core Facts

• Population:  583,000
• GDP:  USD 57 billion
• GDP per head:  USD 94,000
• Workforce:  428,000
• Unemployment (2017):  6%
• Average monthly wages (2017):  USD 4,690

Regulatory

• Government debt:  20% of GDP
• Personal income tax:  44%
• Corporation tax:  29%
• World corruption ranking 2016:  10th Transparency International
• Ease of doing business ranking:  59th Business Freedom Index
• Labour law:  ILO Conventions ratified
• Data protection:  Member of the EU and so recognised as having adequate protection

Despite being a country of just over half a million inhabitants, Luxembourg’s tax laws and its proximity to some of Europe’s largest economies ensure it punches well above its weight, particularly in the banking, financial and legal sectors.  Luxembourg’s employment laws are principally regulated by the Labour Code of 1 September 2006.  While its tax laws often convince global businesses to set up there, employers should take note that Luxembourg’s labour laws are geared towards offering employees a high quality of life. Examples of this include sophisticated employee representation systems, a minimum wage for full-time workers of €1998 per month and the right to overtime or additional time off where working hours exceed 40 per week.