Are you considering umbrella company services in Luxembourg and wondering what your real net salary will be? Our free calculator allows you to precisely calculate your income based on your average daily rate, your marital status, and included benefits.
🧮 Luxembourg Umbrella Company Salary Calculator
🧮 Umbrella Company Salary Calculator
Calculate your real net income in Luxembourg with IT Family
🎁 Monthly Benefits Breakdown
📈 Annual Income (12 months)
💡 Interested in Umbrella Company Services?
Get a personalized calculation and start invoicing in less than 2 weeks
Contact IT FamilyHow Does Umbrella Company Salary Calculation Work?
Components of Your Compensation
Your total compensation with umbrella company services includes several elements that significantly increase your purchasing power compared to just the net salary:
- Monthly net salary: paid directly to your bank account
- Professional expense reimbursement: up to €225/month (training, books, business meals)
- Meal vouchers: €194.40/month (€10.80 × 18 vouchers)
- Company car: benefit worth €750/month
- IT Family management fee: only €200/month for complete administrative management
Calculating the Required Average Daily Rate
To determine the daily rate to charge your clients, we use the following formula:
Daily Rate = (Desired gross salary - Benefits) / Number of billable days
In our simulations, we use 18 billable days per month (approximately 216 days per year), which corresponds to the real average taking into account holidays, public holidays, and non-billable time.
📊 Simulation Tables: Net Salary According to Your Situation
Umbrella Company Simulation – Couple (Tax Class 2)
If you are married or in a registered partnership in Luxembourg, you benefit from tax class 2, which is more fiscally advantageous:
| Gross Salary | Net Salary | Actual Amount Received* | Required Daily Rate |
|---|---|---|---|
| €5,000 | €3,623 | €4,793 | €433 |
| €6,000 | €4,366 | €5,535 | €503 |
| €7,000 | €5,108 | €6,277 | €573 |
| €8,000 | €5,850 | €7,019 | €643 |
| €9,000 | €6,592 | €7,761 | €714 |
| €10,000 | €7,334 | €8,503 | €784 |
| €11,000 | €8,076 | €9,245 | €854 |
*Actual amount including: net salary + professional expenses (€225) + meal vouchers (€194.40) + car (€750) – IT Family fee (€200)
Umbrella Company Simulation – Single Person (Tax Class 1)
As a single person in Luxembourg, you fall under tax class 1. Here are your projected net earnings:
| Gross Salary | Net Salary | Actual Amount Received* | Required Daily Rate |
|---|---|---|---|
| €5,000 | €2,781 | €3,951 | €433 |
| €6,000 | €3,363 | €4,533 | €503 |
| €7,000 | €3,945 | €5,115 | €573 |
| €8,000 | €4,527 | €5,697 | €643 |
| €9,000 | €5,110 | €6,279 | €714 |
| €10,000 | €5,691 | €6,860 | €784 |
| €11,000 | €6,273 | €7,442 | €854 |
*Actual amount including: net salary + professional expenses (€225) + meal vouchers (€194.40) + car (€750) – IT Family fee (€200)
💡 Real-Life Example: Freelance Developer in Luxembourg
Profile: Julie, Full-Stack Developer
- Status: Single
- Daily rate charged: €650/day
- Billable days: 18 days/month on average
Calculating her compensation:
Monthly turnover: €650 × 18 days = €11,700
IT Family gross salary: approximately €8,000
Net salary: €4,527
Benefits: +€750 (car) +€194.40 (meals) +€225 (expenses)
IT Family fee: -€200
= Total amount received: €5,697/month
✅ Julie thus earns the equivalent of €68,364 net per year, while benefiting from a permanent contract, complete social security, and zero administrative management.
🆚 Umbrella Company vs Self-Employed: What’s the Income Difference?
| Criteria | Umbrella Company (IT Family) | Self-Employed (SARL) |
|---|---|---|
| Net salary (for €8,000 turnover) | €5,697 | ~€5,200 |
| Administrative management | ✅ Fully handled | ❌ Your responsibility (or accountant) |
| Social security | ✅ Complete (CNS) | ✅ Complete (CCSS self-employed) |
| Unemployment insurance | ✅ Included | ❌ Not covered |
| Fixed monthly costs | €200 | ~€400-600 (accountant + fixed costs) |
| Access to mortgage | ✅ Easy (permanent contract payslips) | ⚠️ More difficult (complex documentation) |
❓ FAQ: Your Questions About Umbrella Company Salary
What is the minimum daily rate to be profitable with umbrella services?
In Luxembourg, we recommend a minimum daily rate of €400-450 for umbrella company services to be worthwhile. Below that, social charges and management fees can significantly reduce your net income.
Are benefits (car, meal vouchers) guaranteed?
Yes, at IT Family, these benefits are included in all our umbrella company contracts as long as your activity allows it. They are integrated into your overall compensation package.
How can I optimize my net salary with umbrella services?
Several options exist:
- Maximize reimbursable professional expenses (training, equipment, travel)
- Take advantage of the company car to reduce your personal costs
- If you’re in a couple, opt for tax class 2
- Use the IT Family referral system to reduce your monthly fees
What’s the difference between gross salary and actual amount received?
The net salary is what appears on your payslip after deduction of social contributions and taxes. The actual amount received includes all benefits in kind and expense reimbursements, giving a more accurate view of your real purchasing power.
Can I negotiate my daily rate with my clients?
Absolutely! With IT Family umbrella services, you maintain 100% freedom to negotiate your rates with your clients. We simply advise you on Luxembourg market rates according to your expertise.
🚀 Switch to Umbrella Company Services with IT Family
As you’ve seen in our simulations: umbrella company services in Luxembourg allow you to maximize your income while benefiting from the security of a permanent contract and zero administrative management.
IT Family advantages:
- ✅ Transparent fixed rate: €200/month, no percentage on your turnover
- ✅ Complete package: car + meal vouchers + professional expenses
- ✅ Luxembourg permanent contract with all social benefits
- ✅ Quick start: begin invoicing in less than 2 weeks
- ✅ Personalized support: a team dedicated to your success
📞 Contact us for a personalized calculation:
Phone: +352 691 368 368
Email: cedric@it-family.lu
Website: https://it-family.lu
💡 Use our calculator above to calculate your potential income, then schedule a free discovery meeting. We’ll answer all your questions and help you optimize your compensation.
