Update in progress
In the context of the Covid-19 crisis and the increased activity in core sectors, the businesses concerned can apply for an increase in the daily and weekly working hours of their employees.
The standard number of working hours for employees is 8 hours per day and 40 hours per week.
Any working time exceeding the normal working time is considered as overtime.
If overtime is worked, the maximum working time cannot exceed 10 hours per day, nor 48 hours per week.
In some sectors or professions, and during certain periods of time during the year, the Minister of Labour can authorise a maximum working time of 12 hours per day, provided that the weekly working time does not exceed 40 hours.
In order to benefit from an increase in the normal working time, i.e. overtime, the employer must notify any overtime being worked to the Inspectorate of Labour and Mines (Inspection du Travail et des Mines - ITM).
Overtime worked may either be paid or taken as compensatory time off by the employee. The payment of overtime hours is exempt from taxes and partially exempt from social security contributions.
The employer must also send a statement of hours worked to the ITM at the end of each authorised period.
In the context of notification of overtime, the following are concerned:
Employers can only request overtime to be worked within reasonable limits. The systematic use of overtime by employers can be considered as an abuse of rights. In this case, employees are legally allowed to refuse to work overtime.
The employer cannot oblige pregnant or breastfeeding women to work overtime. They may, however, work overtime on a voluntary basis.
The employer is not allowed to have adolescents work overtime, except in special cases (force majeure, to ensure the smooth operation or the security of the business).
For part-time workers, overtime:
The conditions regarding compensatory time off and payment of overtime do not apply to senior managers (managerial positions with no fixed working hours in return for a significantly higher salary).
As a general rule, overtime is only authorised under the following conditions:
Overtime means working extra time in addition to the normal working time but not beyond the maximum allowed working time.
Normal working time and maximum working time are set in accordance with the table below. The maximum limits may not be exceeded under any circumstances.
A collective agreement may, however, set lower or higher limits, with a maximum of 10 hours per day in which case the working week is limited to 48 hours.
Working time for full-time employees
Normal working time
Maximum working time
In principle, the daily working time may only be interrupted by one unpaid rest period.
All workers must have a rest period of at least 11 consecutive hours during each 24-hour period and a rest period of at least 44 consecutive hours during each 7-day period.
Before any overtime is worked the employer must:
The notification, application or declaration can also be submitted online via the specific procedure on the MyGuichet.lu platform.
The form must be reviewed and signed by:
the staff delegation or, failing this, the employees concerned;
the managing director or his deputy.
There are 2 possible scenarios depending on the opinion of the staff delegation or, failing this, the employees concerned:
Employers are exempt from having to notify overtime work in the following 2 cases:
In these cases, the employer simply has to inform the Working Time Department (Service "Durée du travail") of the ITM by telephone (247 - 76100), stating the reasons why overtime was worked.
However, should overtime work be required on more than 3 days per month, the employer must submit a prior notification.
In addition to the prior notification, employers must record the following information in a special register or specific file:
In principle, the employer must compensate all employees who work overtime by granting them 1.5 hours of time off per hour of overtime worked.
This time off in lieu may be:
The employer is free to choose between these 2 types of compensation, except during a notice period for which he has granted exemption from work. In this case, the employer may only choose compensatory time off if the employee agrees to it. If the employee does not agree, a financial indemnity must be paid.
If it is not possible to compensate overtime with time off (because of business operations, the concerned employee is leaving the company, etc.), the employer must pay every hour of overtime with a minimum of 140 % of the hourly salary. It is not possible to specify in the employment contract that overtime is already included in the monthly salary, unless the employee has the senior manager (cadre supérieur) status.
When an employee works overtime on a public holiday, the employer must add the premiums together. Therefore, he must:
The hourly wage is obtained by dividing the monthly remuneration by the standard rate of 173 hours.
The part before premiums of overtime hours (the first 100 %) is exempt from income tax and social contributions, with the exception of:
The premium share (40 % or more) is exempt from income tax and social contributions. This exemption from social contributions applies to both the employee's part and the employer's part of social contributions.
An employee does 8 hours of overtime within one month. The hourly rate is EUR 18.50.
Due to the organisation of work in the business, this employee cannot take time off as compensation. The employer must therefore pay the overtime hours worked:
|Hours before premiums (100 %):||
8 x 18.50 = EUR 148.00
|+ long-term care contributions (1.4 %)||
|+ health insurance contributions (2.8 %)||
|The base is exempt from income tax||
|Total base 100 (base + contributions)||
|Premium (40 % in this case):||
148 x 40 % = EUR 59.20
|The premium is exempt from contributions and tax||
|Total cost (Total base 100 + Total premium)||
154.21 + 59.20 = EUR 213.41
|Of which net total to be paid to the employee||
213.41 – 6.07 = EUR 207.34
For the payment of overtime worked, the employer therefore has to pay EUR 207.34 to the employee with a total cost of EUR 213.41 for the employer.
In the case where a special provision, collective agreement or contract provides for overtime to be paid at a premium rate exceeding 40 %, the excess premium is also exempt from taxes.
Employers must declare the payment of overtime hours before premiums (100 %) and the corresponding number of hours separately from the gross salary.
Therefore, the number of overtime hours before premiums does not appear under the 'Gross salary' heading (salaire brut), but under the heading 'Amount of overtime' (montant des heures supplémentaires).
The corresponding number of hours is to be stated under the heading 'Overtime' (heures supplémentaires).
It should be noted that premiums on overtime and overtime compensated by time off in lieu are not to be declared.