Luxembourg Notice & Severance Pay Calculator
Calculate statutory notice periods (2 to 6 months) and departure severance indemnity (1 to 12 months salary) under the Luxembourg Labor Code.
⚖️ Parametres d'anciennete et de salaire (Termination Data)
📊 Preavis et indemnite de depart (Statutory Entitlements)
| Droit statutaire | Base Code du travail | Duree / Montant (€) |
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Foire aux questions (Statutory FAQs)
What are the statutory notice periods for employer dismissal in Luxembourg?
Under Article L. 124-3 of the Luxembourg Labor Code (Code du travail), statutory notice periods for dismissal with notice are: 2 months for seniority under 5 years; 4 months for seniority between 5 and 10 years; and 6 months for seniority of 10 years and over.
How is statutory severance pay (indemnite de depart) calculated in Luxembourg?
Under Article L. 124-7, employees dismissed with notice after at least 5 years of service are entitled to statutory departure severance: 1 month salary (5 to 10 years service); 2 months (10 to 15 years); 3 months (15 to 20 years); 6 months (20 to 25 years); 9 months (25 to 30 years); and 12 months salary (30+ years service).
What option do companies with fewer than 20 employees have regarding severance pay?
Under Article L. 124-7 paragraph 3, employers with fewer than 20 employees may choose in the termination letter to extend the notice period instead of paying cash severance indemnity.
Is statutory severance pay (indemnite de depart) exempt from income tax in Luxembourg?
Yes. Statutory departure indemnity paid pursuant to Article L. 124-7 is exempt from personal income tax up to statutory limits under Article 115 number 9 of the Income Tax Act (LIR).
What notice period applies if an employee resigns voluntarily in Luxembourg?
If an employee resigns, notice periods are cut by half: 1 month (under 5 years service); 2 months (5 to 10 years service); and 3 months (10 years service and beyond), with no departure severance due.
Engr. Muhammad Shahzad
Verified Western Europe & Benelux Statutory Systems SpecialistChartered Systems Engineer and Fiscal Modeler. Specializing in Luxembourg statutory labor jurisprudence under the Code du travail, Centre Commun de la Securite Sociale (CCSS) social mechanics, Administration des contributions directes (ACD - LIR, IRC, ICC, Tax Classes 1/1a/2), and bilateral cross-border commuter tax conventions (France, Belgium, Germany).