Social Security in Luxembourgis supported by contributions from both the employee and the employer. The rate total is circa 25% of the gross salary, with the maximum not permitted to exceed five times the minimum wage in Luxembourg (salaire social minimum). Individuals who are self-employed pay their own contributions. Pensioners, however, don’t pay any social security contributions.
Social Security in Luxembourg: Special Status for Domestic Help
There is a special social security status for workers employed by a family, either in part time or full time employment. This covers home help, cleaners, baby sitters and various other home positions. Families can receive a tax rebate up to a set maximum amount per annum if they employ personnel legally. The employee is entitled to benefits should an illness, a pregnancy or an accident impede them from undertaking their working duties. This also covers annual leave.
Employees also contribute towards their retirement pot with the procedure for registering private employees being simple and straightforward.
Luxembourg Social Security: What Benefits Are There?
There are various benefits available to families and residents thanks to social security in Luxembourg, however to gain access to these benefits you need to have first made contributions to the social security fund.
Primarily, there is sickness benefits paid for temporary work inability by the Caisse Nationale de Santé (Luxembourg’s National Health Office).
Employees are required to declare any leave for sickness to their employer instantly, even if only a half day. The employee is also required to submit a legal medical certificate if they are absent for excess of two days.
In order to benefit from sickness insurance, the employee has to obtain a Constat Médical d’incapacité de travail (temporary work incapacity form) from a registered doctor. This includes the beginning and end dates of the temporary work inability with the date that the form was completed and filled in. The first page of the form has to be submitted to the employer with the second sheet sent to the Caisse Nationale de Santé. This must be sent away to both parties within three days of the illness starting.
The amount that is paid is calculated according to the salary that has been received over the 12 months prior to the sickness leave but cannot exceed five times that of the minimum wage in Luxembourg.
For more information on Luxembourg Social Security, Luxembourg Payroll, Working in Luxembourg or Contracting in Europe visit the Euro Accountancy & Finance Services website.