Social charges

Situation on 1 January 2020 (index 834.76)

Contribution rate 1)

1                Applicable only in the context of a “principal occupation”

2                Rate applicable to early retirements and to occasional indemnities and allowances as well as bonuses: 5.60% in total, of which employer’s contribution: 2.80%; employee’s contribution: 2.80%.

3        6.10% in total, of which 5.60% for benefits in kind and 0.50% for cash benefits

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4                The different risk classes are as follows:

5                Since fiscal year 2019, the single rate system is replaced by a bonus-malus system whereby the individual contribution rate of each contributor (employers and self-employed) can be reduced or increased according to the cost of work-related accidents during the observation period. The single contribution rate, set at 0.75% for the year 2020, is thus multiplied for each contributor by its bonus-malus factor that can take the values 0.9; 1.0; 1.1; 1.3 or 1.5. Each contributor should receive an information letter, mentioning his individual contribution rate, as part of the introduction of the bonus-malus system.

6                These rates only apply to companies affiliated with the STI or the STM.

7                1.40% of gross salaries after deduction of one quarter of the Minimum social salary (SSM) (535,50 EUR)

Contributory thresholds

1               The annual maximum for the different branches of insurance corresponds to 12 times the monthly maximum. The maximum is not valid for the dependency contribution

Minimum social wage

The level of the minimum social wage (application rate 834.76 of the moving salary scale) amounts from 1 January 2020 to:

The level of the minimum social wage for a qualified employee within the meaning of Article L. 222-4. Of the Labour Code amounts from 1 January 2020 to:

2.570,39 EUR

Can claim minimum wage for qualified employees:

1. An employee who practices a profession with a vocational qualification usually acquired through an education or training sanctioned by an official certificate. Certificates recognized by the Luxembourg State and which are at least at the level of the certificate of technical and vocational aptitude (CATP) or the diploma of vocational aptitude (DAP) of technical secondary education are to be considered as official certificates. The equivalence of certificates which are at least at the level of the Certificate of Technical and Vocational Qualification (CATP) or the Diploma of Professional Aptitude (DAP) is recognized by the Minister in charge of National Education upon the advice of the Minister in charge of Labour.
2. The holder of the Certificate of Manual Capacity (CCM) or of a Certificate of Professional Ability (CCP) with of at least two years practice in the trade or profession in which the certificate was issued.
3. The holder of the certificate of technical and vocational initiation (CITP) after a practice of at least five years in the trade or profession in which the certificate was issued.
4. In the absence of a certificate, the employee has a minimum professional practice of ten years.
5. In occupations where training is not established by an official certificate, the employee may be considered as a qualified employee when he has acquired practical training resulting from the exercise for at least six years of a profession requiring progressively increasing technical capacity.

Remuneration of pupils and students employed during the school holidays

The remuneration of the pupil or student may not be less than 80% of the minimum social wage. At index 834.76 the student is entitled to the minimum amounts listed in the table below, graduated due to age.