In-depth review of the remuneration of Executives in Luxembourg
Although the word 'executives' does not have a legal definition, the Luxembourg Labour Code makes a significant difference between upper-level employees and non-managerial employees. That distinction has many consequences in terms of remuneration, taxation or social security treatment.
a) non-managerial employees cannot exceed a certain number of working hours per day and week. The limitation on working hours does not apply to executive employees;
b) non-managerial employees are entitled to compensation for overtime, either by paid rest time, at a rate of one-and-a-half hours of free time per additional hour worked, or through the payment of their salary plus 40 per cent. The executive employee is not entitled to payment for overtime work; and
c) executives do not fall within the scope of application of certain collective bargaining agreements. They are not entitled to any remuneration for work on Sundays, whereas non-executive employees are paid for hours worked on Sundays, at the request of the employer, with an increase in salary of 70 per cent.
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Sabrina MartinPartner Attorney at law / Avocat à la Cour
Sabrina Martin, partner, is a member of the Litigation & Risk Management Practice Group in our Luxembourg office. She leads the Luxembourg Employment & Benefits team and focuses on international litigation, employment, real-estate, civil, corporate and contract law, data protection, innovation and commercial litigation.T: +352 466 230 631 E: [email protected]
Kheira MebrekSenior Associate Tax Adviser
Kheira Mebrek, senior associate, is a member of the Tax Practice Group in our Luxembourg office. She focuses on personal income tax. She specialises in employment and benefits, employment tax, family owned business and private wealth, social insurances, tax and wage tax.T: + 352 466 230 292 E: [email protected]