What are the benefits of working in Luxembourg?

 If you are planning to migrate to Luxembourg from the UAE as you have bagged a job offer there, know the benefits of working in this European nation.

Work permit eligibility criteria 

Migrant workers from non-EU countries who wish to work in Luxembourg must have a document of 'authorization to stay and a residence permit. Luxembourg can only hire migrant workers from non-EU countries if Luxembourg companies demonstrate that they have not been able to find a suitable candidate from within the EU. Employees must, therefore, hold a certificate from their employer to secure a work visa that verifies that they met this condition. The National Administration of Jobs and your employer who is hiring you must grant you this certificate.

Applying for a work permit

Migrant workers must submit their applications to obtain a work visa for Luxembourg by seeking the help of their employers. To stay in Luxembourg, you have to apply to the Immigration Directorate for a temporary permit in the country. You should have used and obtained it before leaving your home country. There are various categories of visas to apply for depending on your job type in Luxembourg. Usually, Luxembourg work permits are issued for two years. Individuals who want to extend their stay have to start reapplying a minimum of two months before their initial visas expire. A visa can then be reissued for three more years.

Required documents 

Migrants aspiring to apply for a work permit must submit a recent passport photograph, birth certificate documents, evidence that they have no criminal history, a copy of their resume, work experience, educational qualifications, employment contract, an original certificate from the employer stating that they can hire citizens out of EU and cover letters citing reasons for wanting to work in Luxembourg.

Working hours and paid time off

You will have to work a maximum of 40 hours per week in Luxembourg, and employees who put in overtime are eligible for extra wages. Workers in Luxembourg are entitled to a paid holiday of 25 days per year after they complete three months with their employers.  

Minimum income 

The Grand Duchy of Luxembourg, as it is also known, pays one of the highest minimum wages globally. The pay is based on the employee's age and work experience.

Tax rates

The income tax is computed based on an employee's personal situation in the country sandwiched between France and Germany. Due to this, employees are categorized into a tax class. There are three types of taxes:

• Class 1 is for single persons.
• Class 1a for single persons who live with children and those aged a minimum of 65 on January 1 of the tax year.
• Class 2 for people who are living with spouses or partners.

Social security benefits

This West European country has a solid security scheme that gives its residents a wide range of benefits. They include public healthcare, pensions for veterans and widowers, sick & and parental leaves, besides unemployment benefits. To be eligible for Luxembourg's social security scheme, you should have contributed for a certain duration. You must have worked a minimum of 26 weeks during the last twelve months to be eligible for unemployment benefits. The government of Luxembourg deducts social security payments automatically from your monthly salary.

Health insurance

Health insurance covers the medical costs and pays for the compensation of any kind of medical leave. The average rate of health insurance is about 25 percent of an employee's gross salary. The contribution of the employer and employee to it is equal. Meanwhile, self-employed individuals need to contribute to their own insurance.

Maternity Leave

Mothers of newborns are entitled to benefits during pregnancy and after birth too.

Parental Leave

It intends to allow employees to take a leave or reduce their work hours so that they can entirely devote themselves to the upbringing of their children. All parents with children aged below six are entitled to paternal leaves. As per the new parental leave, both parents can take a full-time break for 4 or 6 months or part-time for 8 or 12 months. The consent of the employer is, however, required.

Sickness Leave

All employees below 68 are eligible for statutory sick leave for up to 78 weeks.

Pensions

When individuals reach the age of 65, they are given a regular old-age pension if they have completed contributing to 10 years of voluntary, compulsory, or elective insurance or have completed their purchase periods.

Conclusion

Ranked fourth globally in the index of quality of life by the Economist Intelligence Unit, Luxembourg's GDP per capita exceeds the EU's average by 2.5 times.

Need assistance to work in Luxembourg? Talk to Y-Axis, the World's No. 1 Immigration Consultant.  

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