About
ERI DisclaimerLuxembourg - Compensation & Benefit Legislation
CAPITAL
Luxembourg
CLIMATE
Modified continental with mild winters and cool summers.
LANGUAGES
Luxembourgish, German, French and English.
LEGAL SYSTEM
Based on the civil law system. Luxembourg accepts compulsory ICJ jurisdiction.
CURRENCY
Euros (1 USD = 1.07090 EUR as of June 1, 2002)
LUXEMBOURG - COST-OF-LIVING
ERI's Relocation Assessor is a recommended source for cost-of-living data.
LUXEMBOURG - EMBASSY/CONSULATES
U.S. Embassy at Luxembourg
22 Boulevard Emmanuel Servais
L-2535 Luxembourg
APO AE 09126-1410
Luxembourg
Telephone: [352] 46 01 23
Fax: [352] 46 14 01
Embassy of Luxembourg at Washington D.C.
2200 Massachusetts Avenue N.W.
Washington D.C. 20008
Telephone: (202) 265-4171
Fax: (202) 328-8270
E-mail: info@luxembourg-usa.org
LUXEMBOURG - HOLIDAYS
New Year's Day
Shrove Monday
Easter Monday
Labor Day (May 1st)
Ascension
Whit Monday
National Day - Grand Duke's Birthday (June 24th)
Assumption
All Saints' Day
Christmas
St. Stephen's Day
LUXEMBOURG - LEAVE
Vacation: Minimum 5 weeks paid leave each year.
Maternity leave: 16 weeks – 100% paid (paid for by social security).
LUXEMBOURG - MINIMUM AGE
The law prohibits the employment of children under the age of 16. Apprentices who are 16 years old must attend school in addition to their job training. Workers under the age of 18 have additional legal protection, including limits on overtime and the number of hours that can be worked continuously. The Ministries of Labor and Education effectively monitor the enforcement of child labor laws.
(Section 6.d. Status of Child Labor Practices and Minimum Age for Employment, Luxembourg - Report of Human Rights Practices, 2001, U.S. Department of State.)
LUXEMBOURG - MINIMUM REMUNERATION
The law provides for minimum wage rates that vary according to the worker's age and number of dependents. The minimum wage for a single worker over the age of 18 is €7.06 per hour. The minimum wage is not sufficient to provide a decent standard of living for a worker and family; however, most employees earned more than the minimum wage.
(Section 6.e. Acceptable Conditions of Work, Luxembourg - Report of Human Rights Practices, 2001, U.S. Department of State.)
LUXEMBOURG - REMUNERATION
ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.
LUXEMBOURG - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)
Section 6 Worker Rights
a. The Right of Association
All workers have the constitutional right to associate freely and choose their representatives, and they exercise this right in practice. Of the working population, 57 percent belong to a trade union. Membership is not mandatory. Unions operate free of governmental interference. The two largest labor federations are linked to, but organized independently of, major political parties.
The Constitution provides for the right to strike, except for government workers who provide essential services. Legal strikes may occur only after a lengthy conciliation procedure between the parties. The Government's National Conciliation Office must certify that conciliation efforts have ended for a strike to be legal. No strikes, legal or illegal, occurred during the year. The law prohibits discrimination against strike leaders, and a labor tribunal deals with complaints.
Unions maintain unrestricted contact with international bodies.
b. The Right to Organize and Bargain Collectively
The law provides for and protects collective bargaining, which is conducted in periodic negotiations between centralized organizations of unions and employers. Enterprises having 15 or more employees must have worker representatives to conduct collective bargaining. Enterprises with over 150 employees must form joint works councils composed of equal numbers of management and employee representatives. In enterprises with more than 1,000 employees, one-third of the membership of the supervisory boards of directors must be employee representatives.
The law provides for the adjudication of employment-related complaints and authorizes labor tribunals to deal with them. A tribunal can fine an employer found guilty of antiunion discrimination, but it cannot require the employer to reinstate a worker fired for union activities.
There are no export processing zones.
c. Prohibition of Forced or Compulsory Labor
The law prohibits forced or compulsory labor; however, women were trafficked for sexual exploitation (see Section 6.f.).
The Government prohibits forced and bonded labor by children, and there were no reports that such practices occurred.
d. Status of Child Labor Practices and Minimum Age for Employment
The law prohibits the employment of children under the age of 16. Apprentices who are 16 years old must attend school in addition to their job training. Workers under the age of 18 have additional legal protection, including limits on overtime and the number of hours that can be worked continuously. The Ministries of Labor and Education effectively monitor the enforcement of child labor laws.
In March the Government ratified the International Labor Organization's Convention 182 on the worst forms of child labor.
The law prohibits forced and bonded labor by children, and such practices are not known to occur (see Section 6.c.).
e. Acceptable Conditions of Work
The law provides for minimum wage rates that vary according to the worker's age and number of dependents. The minimum wage for a single worker over the age of 18 is €7.06 per hour. The minimum wage is not sufficient to provide a decent standard of living for a worker and family; however, most employees earned more than the minimum wage.
The law mandates a maximum workweek of 40 hours. Premium pay is required for overtime or unusual hours. Employment on Sunday is permitted in continuous-process industries (steel, glass, and chemicals) and for certain maintenance and security personnel; other industries have requested permission for Sunday work, which the Government grants on a case-by-case basis. Work on Sunday, allowed for some retail employees, must be entirely voluntary and compensated at double the normal wage; employees must be given compensatory time off on another day, equal to the number of hours worked on Sunday. The law requires rest breaks for shift workers and limits all workers to a maximum of 10 hours per day including overtime. All workers receive at least 5 weeks of paid vacation yearly, in addition to paid holidays.
The law mandates a safe working environment. An inspection system provides severe penalties for infractions. The Labor Inspectorate of the Ministry of Labor and the Accident Insurance Agency of the Social Security Ministry carry out effective inspections. No laws or regulations specifically provide workers the right to remove themselves from dangerous work situations without jeopardy to their continued employment; however, every worker has the right to ask the Labor Inspectorate to make a determination regarding workplace safety, and the inspectorate usually does so expeditiously.
Foreign workers are protected equally by law.
f. Trafficking in Persons
The law prohibits trafficking in persons; however, trafficking in women for sexual exploitation reportedly was a problem. Luxembourg is a destination country for trafficked women. Most women trafficked into the country come from Russia, Ukraine, Hungary, and Romania and work in "cabarets."
The Penal Code provides for 5 years' imprisonment for trafficking. However, by year's end 2001, no one had been arrested or prosecuted on trafficking charges. In February 2001, the Chamber of Deputies debated the Government's policy that grants limited entry visas and special work permits to nearly 1,000 women a year, mainly from Eastern Europe, to work as performers in cabarets. However, no reforms had been passed by year's end.
There were no government prevention campaigns, and there were no government services for victims. During the year, the Green Party initiated a trafficking awareness campaign that consisted of several media interviews and the first-ever public conference on the issue in Luxembourg. No local NGO's deal with the problem.
LUXEMBOURG - STANDARD WORKWEEK
The law mandates a maximum workweek of 40 hours. Premium pay is required for overtime or unusual hours.
Employment on Sunday is permitted in continuous-process industries (steel, glass, and chemicals) and for certain maintenance and security personnel; other industries have requested permission for Sunday work, which the Government grants on a case-by-case basis. Work on Sunday, allowed for some retail employees, must be entirely voluntary and compensated at double the normal wage; employees must be given compensatory time off on another day, equal to the number of hours worked on Sunday.
The law requires rest breaks for shift workers and limits all workers to a maximum of 10 hours per day including overtime. All workers receive at least 5 weeks of paid vacation yearly, in addition to paid holidays.
(Section 6.e. Acceptable Conditions of Work, Luxembourg - Report of Human Rights Practices, 2001, U.S. Department of State.)
LUXEMBOURG - SOCIAL SECURITY
Social Security Office of International Programs:
http://www.ssa.gov/SSA_Home.html
LUXEMBOURG - TOTALIZATION AGREEMENT WITH U.S.
Effective Date of Agreement: November 1, 1993.
Coverage and Social Security Taxes:
For employees sent by a Luxembourg employer to work in the U.S. for five years or less, taxes and coverage fall to Luxembourg. If the employee is sent to work in the U.S. for more then five years, was hired in the U.S., or works for a non-Luxembourg employer, taxes and coverage fall to the U.S.
Certificate of Coverage Request:
To establish an employee's exemption from coverage under the U.S. Social Security system, the employer in Luxembourg must request a certificate of coverage from Luxembourg at this address:
General Inspectorate for Social
Security
Rue Zithe, 26
L-2763 Luxembourg
LUXEMBOURG
The same information required for a certificate of coverage from the U.S. is needed to get a certificate of coverage from Luxembourg except that the employee's Luxembourg Social Security number must be shown rather than the U.S. number.
Minimum Credits Needed:
An employee without enough work credits to qualify for Luxembourg benefits but with at lest 12 months of coverage under the Luxembourg system may combine Social Security Credits form the U.S. and Luxembourg to meet eligibility requirements.
Summary of Social Security Benefits: Retirement benefits are payable at age 65 with at lest 10 years of coverage, age 60 with 40 years of coverage including, or age 57 with 40 years of compulsory coverage. Disability benefits are payable under age 65 if the employee is unable to work for a prolonged period of time. Luxembourg provides no benefits for spouses, divorced spouses, or dependents of retired or disabled persons. Survivor benefits to widows or widowers are payable at any age if they are not remarried. Dependents, up to age 18, or disabled dependents of any age receive survivor benefits. The sickness fund pays a lump sum death benefit to a pensioner, covered worker, or family member to assist with funeral expenses.
Additional Information: For Specific information on Luxembourg's Social Security program, visit any Social Security office in Luxembourg, or write to:
General Inspectorate for Social
Security
Rue Zithe, 26
L-2763 Luxembourg
LUXEMBOURG