108 rue de l'Alzette | L-4010 Esch-sur-Alzette | Luxembourg
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Social services in Luxembourg

Payroll management, social compliance formalities and HR advisory: outsource your payroll administration so you can focus on your people.

Managing payroll and social obligations is a major challenge for any Luxembourg business. Between payslip preparation, filings with the authorities (CCSS, ACD), compliance with the Labour Code and collective bargaining agreements, monitoring sick leave and managing employee onboarding and offboarding, business leaders face a complex administrative workload that requires strong technical expertise and constant regulatory monitoring.

Outsourcing your payroll administration to an expert allows you to secure your entire workforce management while significantly reducing costs compared with setting up an in-house HR department (typically cost-effective only beyond 50 to 120 employees). You save time, avoid costly social and tax errors, and benefit from tailored support for complex situations: contract terminations, disputes, the implementation of employee benefits, and more.

With over 20 years’ experience in Big 4 firms, our payroll administration department has in-depth expertise in Luxembourg labour law, social security law and payroll taxation. From hiring to departure, we manage all your social obligations with rigour and responsiveness—so you can focus on what matters most: developing your teams and your business.

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Free yourself from HR administrative constraints

Social compliance in Luxembourg is governed by dense and constantly evolving legislation: the Labour Code, sector collective agreements, social security regulations, payroll taxation, GDPR obligations, etc. A business leader or internal admin team without specialised training is exposed to errors with significant financial and legal consequences: incorrect salary calculations, omissions in social filings, missed statutory deadlines, misapplication of collective agreements, or poorly handled dismissals leading to labour disputes.

Entrusting your payroll administration to a specialised expert ensures full compliance with Luxembourg regulations while optimising your management costs. You benefit from professionals continuously trained on legal changes, equipped with robust payroll software, and experienced in complex cases. Beyond administrative processing, we become your advisory partner for all HR topics: team structuring, remuneration policy, conflict management, social charges optimisation. Outsourcing frees up valuable time so you can focus on managing your people and growing your business.

Comprehensive social support

Our payroll administration department manages your entire payroll process and all administrative formalities related to your employees. From onboarding to offboarding, we handle every stage of the employment lifecycle with rigour and compliance. Discover our four areas of expertise.

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Payslip preparation

Calculating and issuing payslips is the core of our payroll administration services. We manage the full payroll process for your employees: collection of variable items (overtime, bonuses, commissions, benefits in kind, business expenses), calculation of gross and net salaries in line with statutory and collective scales, application of social security contributions (employer and employee portions) and tax withholdings, and handling of wage garnishments or voluntary assignments.

Our specialists fully master Luxembourg social law specifics: application of the qualified or unqualified social minimum wage, overtime calculation under statutory rates (140% to 240% depending on the case), remuneration for Sunday and public holiday work, management of paid leave and related compensation, processing of sick leave with salary continuation, and application of sector collective agreements. We use certified, regularly updated payroll software to ensure reliable calculations and secure electronic transmissions to the authorities. Each month you receive payroll slips ready to be issued to your staff, along with a summary of the social and tax charges due.

Payroll tax withholding filings

Payroll taxation in Luxembourg is based on a withholding tax system that the employer must calculate, deduct and remit monthly to the Direct Tax Administration (ACD). We manage these tax obligations in full: calculation of payroll tax withholdings according to each employee’s tax class (class 1, 1a, 2), application of allowances and deductions, and preparation of monthly withholding declarations.

We also handle electronic submission via CRX file uploads through the government platform MyGuichet.lu, strictly within statutory deadlines (the 15th of the following month). At year-end, we prepare annual salary certificates for each employee, the mandatory documents enabling them to file their personal income tax return. Our expertise protects you from calculation errors that could result in tax reassessments, and we advise on lawful optimisation options (special regimes, tax-efficient benefits, etc.).

CCSS onboarding/offboarding filings

Any company employing staff in Luxembourg must be affiliated with the Joint Social Security Centre (CCSS) and comply with multiple reporting obligations. We manage all these formalities for you: initial affiliation of your company with the CCSS upon your first hire, onboarding declarations for each new employee (within the 8 days prior to their start date), offboarding declarations at the end of employment contracts, and monthly salary and contribution declarations via the SECUline platform.

We also follow up on specific situations: sick leave declarations and transmission of medical certificates to the National Health Fund (CNS), management of salary continuation and CNS reimbursements, affiliation to specific cross-border regimes (where applicable), and handling of PASSRAU affiliation for seconded or expatriate employees. Our command of CCSS procedures and use of digital tools ensure deadlines are met and filings remain compliant—protecting you from administrative penalties and audit risks from the Labour and Mines Inspectorate (ITM) or the General Inspectorate of Social Security (IGSS).

Occupational medical examinations

In Luxembourg, employers are legally required to arrange pre-employment medical examinations for employees through Occupational Health Services. This exam must take place before the employee effectively starts work, or at the latest within two months of hiring. We manage all related formalities: registering new employees with the appropriate Occupational Health Service, booking medical appointments, and monitoring mandatory periodic medical examinations (every 3 to 5 years depending on job roles).

We also track special cases requiring enhanced medical monitoring: high-risk positions (handling hazardous products, working at height, operating machinery, etc.), night workers, employees with disabilities, and return-to-work procedures after long-term sick leave. We store fitness certificates in compliance with GDPR requirements and alert you to renewal deadlines for periodic exams. In the event of medical unfitness, we support you through redeployment or job adaptation procedures in line with your legal obligations.

PCG excellence in social administration

Our payroll administration department delivers far more than administrative processing of salaries. Here are the four strengths that make PCG your trusted partner for HR and social compliance.

In-depth legal expertise

Over 20 years of experience in Luxembourg labour law, social security law and payroll taxation. We fully master sector collective agreements and advise you on complex situations.

Certified payroll software

We use high-performance solutions regularly updated with the latest statutory scales and tax parameters. Secure electronic filings with the authorities (CCSS, ACD) via SECUline and MyGuichet.

Continuous social regulatory monitoring

Our team is continuously trained on changes to the Labour Code, social security regulations and payroll taxation. You benefit from up-to-date advice and early anticipation of regulatory shifts.

Strategic HR advisory

Beyond payroll, we support you on HR topics: drafting tailored employment contracts, managing terminations, implementing employee benefits, remuneration policy, GDPR compliance and dispute management.

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Solutions adapted to your size

Whether you are a micro-business with a few employees or an SME with several dozen staff, we offer tailor-made outsourcing packages adapted to your organisation and internal resources. You can fully outsource payroll management or benefit from our expertise on specific topics only.

Our social services are modular and scalable as your business grows. We can also support your in-house HR team with targeted expertise, regular training or temporary reinforcement during peak periods.

Essential Package

For micro-businesses and small structures (1 to 10 employees)

Our support includes:
  • Monthly payslip preparation
  • Monthly payroll tax withholding filings and CRX files
  • Monthly CCSS filings (SECUline)
  • Employee onboarding/offboarding declarations
  • Registration for mandatory medical examinations
  • Annual salary certificates
  • Email and phone support
Who is it for? Micro-businesses, self-employed professionals with a few employees, and simple structures with no complex HR situations.

Full-Service Package

For established SMEs (10 to 50 employees)

Our support includes:
  • Everything included in the Essential Package
  • + Drafting employment contracts (permanent, fixed-term, part-time, etc.)
  • + Managing contract terminations (dismissals, mutual terminations, final settlements)
  • + Tracking sick leave and liaising with the CNS
  • + Issuing work certificates
  • + Tailored HR advice for day-to-day matters
  • + Regulatory monitoring and alerts on legal changes
  • + Support during ITM or IGSS audits
Who is it for? Established SMEs, growing businesses, and structures facing diverse HR situations and needing regular advice.

Premium Package

For structured companies (50+ employees) or complex environments

Our support includes:
  • Everything included in the Full-Service Package
  • + Social compliance audit of your HR practices
  • + Quarterly training for your HR team on regulatory updates
  • + Drafting internal policies (internal rules, IT policy, flexible working hours policy)
  • + Support for employee representation elections (staff delegation, joint committee)
  • + Management of complex cases: international secondments, collective redundancies, restructurings
  • + Dedicated priority contact
Who is it for? Large SMEs, companies with substantial headcount, businesses subject to strict collective agreements, and groups requiring a strategic HR partner.

Transparent pricing

Our fees are calculated based on headcount and the complexity of your situation (collective agreements, multiple fixed-term contracts, benefits in kind, etc.). Our pricing remains highly competitive compared with the cost of an in-house payroll/HR department.

With our social outsourcing packages, you benefit from flawless payroll processing, full legal compliance and tailored HR support. You reduce legal risks, optimise management costs and free up time to focus on leadership and team development. Our commitment: ongoing availability, rapid responsiveness and a long-term relationship of trust.
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Request your personalised quote

Please complete the form below so we can review your payroll management needs in Luxembourg together.

Quote request form

FAQ

Our fees depend on headcount and the complexity of your situation (applicable collective agreements, contract types, benefits in kind, etc.). As a general indication, expect between €40 and €80 excl. VAT per payslip depending on the chosen package. We provide a transparent, tailored quotation during our first meeting.

For micro-businesses, outsourcing is generally cost-effective from the very first employee, as it avoids training costs, software licensing and regulatory monitoring. Compared with a fully internal HR department, the break-even point is usually between 50 and 120 employees depending on your activity.

Absolutely. We offer hybrid models where you keep, for example, the input of variable payroll items in-house, and we handle final payroll calculation, filings and advisory. You can also outsource only certain components (tax filings, legal advice, etc.).

We commit to issuing payslips within 3 to 5 business days after receiving all variable payroll items. To meet statutory deadlines, we recommend sending these elements before the 20th of each month.

We fully support you during audits carried out by the Labour Inspectorate (ITM) or the Social Security Inspectorate (IGSS). We prepare all required documentation, assist you during meetings and advise on any necessary regularisations.

Yes. We have the expertise to manage complex international situations: PASSRAU affiliation for intra-EU secondments, bilateral social security agreements, payroll calculations with tax equalisation, etc. We coordinate with your other providers abroad when needed.

Yes. Under our Premium Package, we organise quarterly training sessions on labour and social security regulatory updates. We also provide training on demand on specific topics (termination processes, collective agreements, GDPR, etc.).

We apply GDPR and the confidentiality obligations inherent to our profession. All data is hosted on secure servers in Luxembourg, access is logged and limited to authorised persons, and we sign a GDPR-compliant data processing agreement with you.

A question?

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Expert insights in social and labour law

Deepen your knowledge of social administration and Luxembourg labour law with articles written by our HR specialists. Labour Code, collective agreements, employer obligations: we break down the key topics to help you manage your human resources more effectively.

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