Combining the flexibility of freelancing with the security of salaried employment, wage portage offers the opportunity to launch an independent business without having to set up or manage a company. It also enables you to earn a regular income without necessarily becoming an employee. Of course, this innovative status has many other advantages beyond these considerations. But these two reasons are more than enough to convince professionals to take the plunge. Compatible with a variety of freelance and consultancy professions, this new method of organizing work is currently gaining ground in France, and is also making inroads in Luxembourg.
The attractiveness of the Luxembourg labor market
Surrounded by Germany, Belgium and France, the Grand Duchy is one of Europe’s smallest countries, covering just 2,586 square kilometers. Despite its small size, Luxembourg has the feel of a large cosmopolitan city, with residents and workers from over a hundred countries around the world.
For centuries, Luxembourg’s economy was based on agriculture and industry, as well as trade (Luxembourg also acted as a crossroads for its neighboring countries).
But over the decades, Luxembourg has had to modernize and embark on a digital transformation, a transition it has succeeded in making. As proof, the web giant Amazon and the online bank ING have decided to set up shop here.
Moreover, its international outlook, multicultural character, sustained economic development (it is one of the richest European countries), political stability, excellent living conditions (security, housing, transportation, cultural life and high-quality environment) and tax advantages make Luxembourg a real Eldorado for professionals, entrepreneurs and investors alike.
As far as the Luxembourg job market is concerned, the presence of numerous companies of all sizes and in all industries means that the job market is quite broad and that there are still plenty of opportunities to come and work here.
Figures published by the French Employment Development Agency (ADEM) in November 2022 show an unemployment rate of 4.9%. This is well below the European average (around 6% in October 2022).
The service industry is Luxembourg’s leading employer, and benefits from the quality, reliability and performance of the country’s telecommunications networks and infrastructure.
These structures have also encouraged the growth of remote working, which is ideally suited to wage portage. The lockdown measures put in place during the COVID-19 pandemic accelerated the use of telecommuting.
How can I work on a wage portage basis in Luxembourg?
As a reminder, wage portage allows independent professionals to carry out their activities under the status of a company employee, while also preserving their freedom.
In Luxembourg, in addition to not having to set up or manage a company and benefit from the advantages of salaried employment (a stable income, social security coverage with low charges, professional liability and unemployment insurance, pension, etc.), becoming a ported employee also offers the opportunity to take advantage of a very attractive tax system.
There are, however, a few conditions for becoming a ported employee in Luxembourg. Workers who want to start their own business must hold a valid social security card recognized in Luxembourg.
In addition, access to Luxembourg-based wage portage companies is forbidden to non-resident workers (particularly those who already have a job in their country of origin), by regulations to combat cross-border social fraud.
In any case, for those who meet the criteria, Luxembourg offers many opportunities for assignments. Because the country is sparsely populated, the need for skilled workers and labor is high.
Industries currently hiring include:
- Finance and banking;
- ICT (information and communication technologies);
- Web and digital professions;
- Personal services…