ICL - expat_ss.php

Social Security

NB: Most of the websites mentioned as reference offer a french and german version. Many of them also have (or are about to have) an English version.

The legal sources of the social security rules in Luxembourg are the Code of social security (Code de la sécurité sociale), the European Regulations No 883/2004, No 987/2009, No 988/2009, No 1231/2010 on the coordination of social security systems (also for EEA and Switzerland) as well as bi- or multilateral agreements.

Contents

Return to Expat GuidesImmigrationLabor Law

1. The Social Security System


1.1. Joint Social Security Centre (Centre commun de la sécurité sociale or CCSS)

Top

The CCSS is the central administration for the social security system in Luxembourg. It is in charge of the affiliation and of the data management of the different entities and administrations of social security insurance in Luxembourg.

An affiliate is thus automatically registered with these various insurance administrations. The most important are the National Health Insurance.(Caisse nationale de santé), the National Pension Insurance (Caisse nationale d'assurance pension) and the National Fund for family allowances (Caisse nationale des prestations familiales). In principle, each individual is covered by the social security system.

The rules listed below apply to families resident in Luxembourg. Specific rules may apply to affiliates who do not reside in the Grand Duchy.

Employees are registered with the CCSS by the employer. Independents must register themselves.

1.2. Social security contributions

Top

For salary as of EUR 1,921.03 (minimum social wage) and capped at EUR 9,605.13 (as of October 1, 2013)

The spouse without occupation and the children of the affiliate are also insured.

Compulsory for employees - Around 13% of the gross salary are charged to employees (8% for pension insurance, 3.05% for health insurance, 1.4% for contingency insurance)

Social contributions are deducted at source from the gross salary

Note that employers also pay a share for the social contribution of the employee. Around 13% of the gross salary are charged to employers (8% for pension insurance, 3.05% for health insurance, 0.42 up to 2.64% for absenteeism risk and 0.10 % for health and safety at the workplace)

Compulsory for independents - Independent must pay both shares (employee's and employer's share = around 26%).

Contribution Rates for 2013

  Employee's share Employer's share
Health insurance 3.05% 3.05%
Benefits in kind 2.80% 2.80%
Cash benefits 0.25% 0.25%
Employers' mutual scheme (*) 0.42-2.64%
Pension insurance 8.00% 8.00%
Dependency insurance 1.40%
Health and safety at work 0,10 % to 0,11 %
43 EUR for each employee in the banking sector
Accident insurance 1.10%

(*) On voluntary basis for independent

2. Social Security Coverage


2.1. Health insurance

Top

Health insurance is compulsory for employees, independents and persons retired after a professional activity in Luxembourg who are resident in the Grand Duchy.

Health insurance is optional for persons resident in Luxembourg with independent financial means.

Salary continuance in case of sickness (base salary and further remuneration elements) for 77 days. After this delay, the National Health Insurance takes over the salary continuance.

The employment contract lapses automatically after 52 weeks of absence within 104 weeks

Medical care

Benefits in kind
Benefits in cash

Refund mostly between 80 and 100% but some treatments may not be refunded or refunded at a lower level.

To compensate this financial risk, some affiliates take a private complementary insurance:

Maternity benefits

Women without professional activity are also entitled to a maternity allowance paid by the National Fund for family allowances.

2.2. Labour accidents Insurance

Top

Covers accidents at work or while commuting

Covers occupational diseases

Several indemnities (benefits in kind, cash benefits in case of incapacity for work, partial or full pension, various indemnities for damages suffered).

2.3. Pension insurance

Top

Covers retirement, disability and survivors benefits

Retirement

Conditions:

Conditions in case of international career:

Retirement Pension

Disability

Conditions:

Survivors' benefits

Conditions:

2.4. Family benefits

Top

Family allowance

Child bonus (Boni)

School allowance

Birth allowance

Allowance for parental leaves

2.5 Unemployement Insurance

Top

Conditions:

Indemnity:

Duration: