Fees by service line · Payroll

Payroll fees in Luxembourg in 2026

Updated By , licensed accountant10077274

Payroll fees in Luxembourg are EUR 25 excl. VAT per payslip up to five payslips a month, EUR 22 from six to twenty, EUR 20 beyond. Opening the file costs EUR 200 excl. VAT; CCSS communications and the annual withholding tax return EUR 150 excl. VAT each per year. A first employee costs about EUR 800 excl. VAT in the first year.

Fees by service line: Accounting · Company formation · VAT · Corporate secretarial · Directorship · SOPARFI · Funds and SPV · Odoo Overview.

How much does a payslip cost in Luxembourg?

A payslip in Luxembourg costs EUR 25 excl. VAT up to five payslips a month, EUR 22 from six to twenty, EUR 20 beyond. The price includes the CCSS contributions, income tax withheld according to the tax card, benefits in kind and secure delivery to the employee.

Payslips, decreasing scale
Monthly volumePrice per payslipIncluded
1 to 5 payslipsEUR 25Calculation, withholding tax, contributions, secure delivery
6 to 20 payslipsEUR 22Same, employee portal
Over 20 payslipsEUR 20Same, dedicated payroll contact

Which fixed costs come with payroll?

Payroll in Luxembourg carries three fixed costs: file opening (EUR 200 excl. VAT, once), communications to the Joint Social Security Centre (EUR 150 a year) and the annual withholding tax return (EUR 150 a year). Events in the life of the contract are billed per unit.

Payroll services per unit
ServicePriceFrequency
Payroll file opening, data takeoverEUR 200Once
CCSS communicationsEUR 150Per year
Withholding tax return (RTS)EUR 150Per year
Employee entry declarationEUR 20Per hire
Exit declarationEUR 50Per departure
Final settlementfrom EUR 125Per departure
Annual remuneration certificateEUR 50Per employee, on request
Exceptional calculation: bonus, benefitfrom EUR 75Per event
Wage garnishment or maintenance orderEUR 50Per month concerned
Sickness, CNS or accident follow-upfrom EUR 75Per file
Employer cost simulationEUR 100Per simulation
Standard employment contract on templateEUR 150Per contract
Premium employment contract, specific clausesEUR 500Per contract
Payroll takeover mid-yearfrom EUR 350Once

How much does payroll cost per employee per year?

Payroll for one employee costs about EUR 800 excl. VAT in the first year in Luxembourg (opening 200, twelve payslips 300, CCSS 150, RTS 150), then about EUR 600 excl. VAT a year, excluding special events. For five employees, count about EUR 2,000 excl. VAT in year one, then EUR 1,800.

Item1 employee, year 11 employee, year 25 employees, year 1
File opening2000200
Payslips (12 per employee)3003001,500
CCSS communications150150150
RTS return150150150
Entry declarations200100
Total excl. VAT8206002,100

Mickaël LOC's take

Payroll is not judged on the price of a payslip but on the cost of an error. A miscalculated withholding is recovered over twelve months; a late CCSS declaration costs surcharges. We publish a low price per payslip because the process is industrialised, not because it is rushed: every payslip passes a consistency check before release.

Does a director's payroll cost more?

A director treated as an employee costs the same as any payslip, EUR 25 excl. VAT, with the specifics handled at no extra charge: CCSS affiliation as manager, withholding on the tax card, benefits in kind (car, housing), combination with income earned abroad for cross-border workers.

Frequently asked questions

Does the payslip price include CCSS declarations?

The payslip price (EUR 25 excl. VAT) includes the contribution calculation. Monthly CCSS communications are covered by a separate annual flat fee of EUR 150 excl. VAT, whatever the headcount.

Do I need payroll software?

No. The firm uses its own approved software; no licence to buy, no set-up. Payslips are delivered through a secure portal accessible to the employee.

How is payroll billed for an employee who joins mid-month?

Per payslip, like any other: a pro-rata payslip costs EUR 25 excl. VAT, plus the entry declaration at EUR 20 excl. VAT. No month is billed without a payslip issued.

Do you handle cross-border employees?

Yes, at no extra charge. French, Belgian and German cross-border workers make up a large share of the payslips we produce; withholding and affiliation rules are built into the calculation.

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Amounts excl. VAT (17%). Grid in force at the date shown; the signed engagement letter is the only contractual document.

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