You should count on having to pay for the following things up front once you arrive in Luxembourg:
- Apartment : 1 month rent + 1 month rent as agency fee + apartment deposit (usually 2-3 months' rent)
- Furnishing the apartment: Furnished apartments are available, but they are more expensive than un-furnished ones. You will need think about things like silverware, plates, pots, pans, beds, closets, bureaus, chairs, coffee makers, etc.
- Buying a GSM / handy / cell phone: We strongly recommend that you get a mobile phone or a Luxembourg sim card as soon as possible upon arrival. It is the easiest way for people, both inside and outside of Luxembourg, to reach you until you get settled in to your new apartment and new school. The school can lend you a mobile phone if you need one.
- General living expenses: You should count on receiving your first pay at the end of August. Therefore, you should also count on bringing enough money to cover your food and other general living expenses for at least one month.
- If your contract so indicates, you will receive a sum of money from the school to help defray some of your relocation and other transportation costs. You will receive this money in August as soon as you have opened up a bank account.
Given the number of large expenses which you will have in getting started in a new country and a new school, we recommend that you err on the side of caution and perhaps bring too much money with you rather than just barely enough. Also, we recommend that, depending upon where you are coming from, you bring some money in Travelers' Cheques and plan to transfer the rest of your money from abroad as soon as you have your bank account set up.
- a copy of your employment contract,
- your passport,
- a copy of your passport photo page,
- a copy of your apartment / house rental agreement
- and the "Declaration d'Arrivée" from your local town hall ("commune").
- NON EU citizens will need to bring a proof of their former address in their former country of residence (please bring for instance a recent electricity or telephone invoice) and their tax number from their former country of residence.
Indeed, NON-EU citizens are only considered as legal residents upon the delivery of their Luxembourg residence permit, which may take 2 to 3 months. Therefore, their bank account is first opened using their former address and is changed permanently to their Luxembourgish address when they have received their residence permit.
- When you open your account in one of the partner bank, you should be sure to request the school's negotiated package, "Expat" Package. Included in this package will be a V-Pay / eurocard (direct debit card), a credit card and on-line banking as well as no charge for the bank guarantee (rental deposit) for your lease (this is an important point!). It will take about 3 weeks for you to get your bank cards;
- You may pay bills through the bank by direct transfer (virement - ask the bank for the forms.), direct debit for bills such as rent and utilities or through your bank’s internet network;
- Online banking is the least expensive way to transfer money / pay bills in Luxembourg; Your bank will give you a free Token to secure your online transactions. The Token is an electronic device that displays a different secret code whenever you login, generated automatically by pressing a button.
- You will receive regular bank statements from your bank showing your balance and all transactions (you choose the frequency: by transaction, weekly or monthly);
- When you have been issued with a V-Pay/ Direct debit you may pay in many shops using this card along with an assigned PIN number. This is direct debit card, not a credit card, and the debits are recorded on your bank account immediately. In addition, you will be able to use your card to pay for merchandise in other European countries.
- You may also use your V-Pay/ Direct debit card to withdraw cash from your account at any of the ATM’s in Luxembourg and in many European countries. However, there will be a bank charge if you use the ATM from any bank other than your own.
- A Luxembourgish address can be added to the NON EU citizens’ account to receive mail while they are waiting for their residence permit.
- "Allocation familiale" - this allowance is paid monthly to the family and is based upon the number of dependent children in the family;
- "Boni pour l'enfant" - this allowance is paid monthly to the family and is based upon the number of dependent children in the family.
The school's salary scales and the regulations concerning staff placement within the salary scales are set within the Collective Bargaining Agreement (a document negotiated every 2-3 years by the Employee Delegates and the ISL Board of Governors) and are automatically adjusted for movement of the official cost-of-living index consistent with the applicable laws in Luxembourg.
- national pension fund 8 %,
- national health system 3.8%
Under Luxembourg law, income taxes are only partially deducted at source. Income tax in Luxembourg is calculated based upon tax brackets; the top tax rate is 39%. Thus, in order to help prospective new staff better calculate their monthly “take home” salaries, the school estimates that staff members can expect to pay the following approximate percentage of their salary in terms of Luxembourg income tax:
- Single staff member (on Teacher Salary Scale) – approximately average 22%
- Married staff member (1 spouse working only, no children) (on Teacher Salary Scale) – approximately average 10%
- Married staff members (2 staff members working, no children) (on Teacher Salary Scale) – approximately average 20%
Each new staff member should have received, from HR, an annual salary simulation which will give them an idea of what their yearly income and tax (and end of the month) situation should look at. If you did not receive one, need another copy or need additional explanations, please contact HR.