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Can I afford to hire an employee?

Estimate the employee’s first-year cost and see how the hire could affect your profit and your cash, month by month.

Designed for Luxembourg businesses
Minimum wage figures from 1 June 2026
Free Excel hiring plan
1

Your business finances

Your figures for the next 12 months, before the new hire.

€12 MONTHS
€12 MONTHS
Expected revenue: the total sales, excluding VAT, you expect to invoice over the next 12 months. Use a conservative estimate.

Existing expenses: all operating costs paid by the business over the next 12 months, such as rent, software, insurance, marketing and existing salaries.
€TODAY
This is the cash currently in your business bank account. It shows whether you can cover the first months of salary and equipment before the new hire starts bringing in revenue.
2

About the employee

The salary and contract you have in mind.

€PER MONTH
OF 12
In Luxembourg, the gross salary is the amount agreed with the employee before their tax and social security deductions. Your total cost is higher, because the business also pays employer contributions to the CCSS.
A qualified worker in Luxembourg generally holds a recognised professional qualification (such as a DAP, a CCP or a degree in the field) or has at least 10 years of experience in the same trade. Qualified workers are entitled to a higher minimum wage.
3

Hiring assumptions

Employer contributions and the extra costs of getting started.

€ONE-OFF
One-off or recurring costs linked to the new hire, such as recruitment agency fees, a work permit for non-EU staff, legal fees for the contract, equipment like a laptop and a desk, and initial training.

This tool gives an estimate for planning purposes and is not accounting, tax or legal advice. Employer contributions in Luxembourg are roughly 12.6% to 15% of gross salary, depending on the accident insurance coefficient and the mutuality class of your business, so 15% is a prudent default. Minimum wage figures apply to adult workers from 1 June 2026. The cash chart assumes revenue and existing expenses are spread evenly over the year.