Luxembourg

Social security contributions in detail

Employers must register all employees with the Luxembourg Joint Centre for Social Security (‘Centre Commun de la Sécurité Sociale’ or ‘CCSS’) before, or within the first eight days of employment. Once registered with the CCSS, the employee is entitled to benefits such as membership of the State pension plan and access to health and accident insurance.

Employers must pay part of the social security contributions and deduct the other part from the employees’ remuneration in order to pay the contributions to the CCSS each month.

For the year 2020, the part to be paid by the employer is divided into:

  • contributions for health insurance amounting to 3.05% of the gross salary, for benefits in kind and cash;

  • contributions for pensions amounting to 8% of the gross salary;

  • contributions to accident insurance ranging from 0.675% to 1.125% of the gross salary, depending on the applicable bonus-penalty;

  • contributions for health at work amounting to 0.11% of the gross salary; and

  • contributions to the employer’s mutual fund amounting to 0.46% (risk class 1), 1.07% (risk class 2), 1.58% (risk class 3) or 2.70% (risk class 4).

For the year 2020, the employee must pay:

  • contributions for health insurance amounting to 3.05% of the gross salary, for benefits in kind and cash;

  • contributions to pensions amounting to 8% of the gross salary; and

  • contributions to dependency insurance (i.e. the dual policy of supporting the elderly and disabled to live at home and developing user-orientated care strategies) amounting to 1.40% of the gross salary.

The monthly remuneration on which the calculation of the contribution amount is based will be taken into account up to the maximum of five times the minimum ‘social wage’ of a non-qualified employee (i.e. EUR 10,709.95 per month, as at 1 January 2020). The minimum monthly earnings on which social contributions are payable is, for an unqualified employee, EUR 2,141.99.

Specific rates apply in some sectors. For example, employers in the tertiary and financial sectors must pay a contribution of EUR 45 per employee per year to be affiliate to the occupational health service (‘ASTF – La Médecine du Travail des Secteurs Tertiaires et Financiers’).

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Author: CASTEGNARO

Date: April 2020


Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.