Luxembourg Social Security 2015

Whether a Resident or a Non-Resident, employees working in Luxembourg are required to pay Luxembourg social security 2015 contributions on their gross salary and all earnings within Luxembourgian borders.

Both employees and employers pay social security contributions in Luxembourg. A host of benefits are available to residents of Luxembourg and their families if they contribute to the social security fund.

Sickness Contributions : Luxembourg Social Security 2015

Sickness contributions currently sit at 3.05% of gross periodic payment, limited to a monthly ceiling of €9,605.13 with an estimated €115,261.56 ceiling.

Pension Contributions : Luxembourg Social Security 2015

Pension contributions are 8% of gross payment, with a limited monthly ceiling of €9,605.13 and estimated annual ceiling of €115,261.56.

Contributions are required to be held by the employer from the employee’s gross salary.

Multilateral and bilateral agreements involving social security protect the interests of those who are provisionally resident employees.

Employees who are both residents and non-residents will need to pay Luxembourg social security contributions, subject to the ‘dependency contributions’ on all gross professional income.

This is reduced by €480.26 per month, estimated at €5,763.12 per year. Net portfolio income and taxable capital gains of resident taxpayers of Luxembourg are also subject to the dependency contribution. Except for in the case of interest within the boundaries of the 10% WHT (Withholding Tax) in full discharge of income tax. The rate for dependency contributions amounts to 1.4% as a flat rate.