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Luxembourg Salary Optimizer

See how non-taxable benefits reduce costs for employers and increase take-home pay for employees in Luxembourg.

Non-taxable benefits in Luxembourg

Luxembourg employers can offer meal vouchers (chèques-repas) up to €10.80/day (€6.84 employer portion tax-exempt), company cars (taxed at 0.5–1.8% of value per month as benefit-in-kind), supplementary pension schemes, group life insurance, supplementary health insurance, and interest subsidies on employee mortgages. Commuting allowances based on distance are tax-deductible. The country also offers a unique profit-sharing bonus (prime participative) that can be partially tax-exempt.

Try the optimizer

Enter a gross salary to see how restructuring part of the compensation as non-taxable benefits can save money for both the employer and the employee. The optimizer uses Luxembourg's 2026 benefit rules and contribution rates.

Also available for Luxembourg

Data sources

Tax rates, social contribution percentages, and minimum wage data used in this calculator are sourced from official government publications and Eurostat, updated for 2026.

Workplace.hr launches in July 2026. These free tools are available now — no account needed. Join the waitlist for the full platform.