Frequently asked questions about day rates in Luxembourg

What is the TJM?

The TJM (taux journalier moyen, or average day rate) is the price excluding VAT that a freelancer charges for one day of work. It must cover net income, social contributions and taxes, non-billable days (holidays, prospecting, training) and business expenses.

What is the average day rate of a freelancer in Luxembourg?

On Freelancers.lu, the median day rate of missions published in the last twelve months is €535 (half of the missions between €516 and €635) and that of freelancers in the directory is €665. Senior profiles and scarce specialties (SAP, cybersecurity, banking compliance) sit above.

What contributions does a self-employed person pay in Luxembourg?

CCSS social contributions amount to about 24.65% of professional income: pension 16%, health insurance 6.10%, long-term care insurance 1.40%, accident insurance 1.01% and occupational health 0.14%. Add income tax according to the tax class (1, 1a or 2), the solidarity contribution (7% of the tax) and, depending on the activity, municipal business tax.

How many days does a freelancer bill per year?

Count on roughly 18 to 19 billed days per month, i.e. 210 to 220 days per year, once holidays, public holidays, gaps between missions and non-billable time are deducted. This is the simulator's assumption (18.5 days per month).

How do I calculate my day rate?

Start from the net monthly income you want, add social contributions, tax and business expenses, then divide by the number of days you actually bill. The simulator above does the reverse: from your day rate and hours it estimates your net monthly income with Luxembourg parameters.