Luxembourg's unemployment rate stands at 6.6% as of September 2009. However, landing a job in Luxembourg takes a certain amount of experience, qualification and luck.
As a member of the Schengen agreement, under the EU's freedom of movement provision, EU nationals have the right to work in Luxembourg without a permit. However, a valid EU passport is needed and if EU nationals wish to stay for more than three months, a residence permit must be obtained.
Non-EU nationals are required to obtain both a work permit and a residence visa. Any potential employers need approval from the local labor or employment in order to hire Non-EU nationals. Once approved, the majority of employers assist an employee to obtain a visa.
Luxembourg set new immigration laws in July 2008, granting permits only to highly qualified individuals. Notably, Luxembourg has the highest proportion of foreigners within the EU countries; official statistics show 43% of the total population are foreign residents, which resulted in more stringent laws that intend to protect local citizens' rights in periods of high unemployment and to discourage immigrant trafficking.
Minimum Wage
Expats are mostly drawn to the promise of a high salary in Luxembourg. In January 2009, Eurostat reported that Luxembourg topped the ranking for the highest minimum wage in Europe. Luxembourg's gross monthly minimum wage is at €1,642 followed by Ireland at €1,462 and Belgium at €1,387. It is said that drivers and street cleaners earn an average of €1,413 monthly or €16,956 in a year.
Job Market
The financial services sector in Luxembourg is very competitive with a high demand for international executives and professionals. It is one of the country's largest employment sectors, concentrating on banking and investing, with back office functions such as auditing and administration.
Other employment opportunities are in the steel, aluminum and tourism industries.
Working Conditions
A typical working week is legally limited to 40 hours or 8 hours a day unless specified otherwise in cases of white-collar jobs. Working hours may also vary depending on the employer, industry of the company and your position. Overtime will be paid according to the extra hours worked.
Some companies operate a flexi-time scheme. It requires all employees to be present in a block time between 8.30am and 11.30am and 1.30pm to 4pm. Some employees make up their required working hours by working earlier or later than the required block time or by reducing their break time.
Like in many other countries, Luxembourg pays a 13th month bonus or Christmas bonus (prime de fin d'année or jaarpremie). A few companies even add half of a 14th month's pay, payable at the end of the year.
Aside from the good salary packages provided to executives and senior managers, companies also provide benefits like a company car, private school fees, free home or loans and membership to local clubs or sporting organizations. These benefits, however, are taxable.
Taxes
As an expat living in Luxembourg, expect to pay high individual income taxes, which are progressive and can go up to 40% (38.95% plus 2.5% surcharge). Corporate taxes are low at 22.9% which include 4% employment fund contribution. Taxes may vary depending on the municipality.
More Expat Resources
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