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Social parameters applicable as from 1 January 2017

Work Relations & Talents

Social charges

Situation on 1 January 2017 (index 794,54)

Contribution rate 1)

Insurance branch


Employer’s contribution

Employee’s contribution

Pension insurance




Health insurance – contribution to the National Health Fund (CNS) 2)

     6,10% 3)



Health insurance -Contribution to the « Mutualité des employeurs »


Depending on the class of risk 4)


Accident insurance


Occupational medicine 5) 

STI : 0,10% / STM : 0,11%

Dependency insurance 6)




Temporary budget balancing tax 7)             /              /

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

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%.

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

The different risk classes are as follows:

Financial absenteeism rate « « d’absentéisme financier »

0% – <0,65%

0,65% – <1,60%

1,60% – <2,50%


Contribution rate





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

1.40% of gross salaries after deduction of one quarter of the Minimum social salary (SSM) (EUR 499,65).

The 0.5% temporary budgetary balancing tax is abolished as from 1 January 2017..

Contributory thresholds

Branch of insurance

Monthly minimum

Monthly maximum 1)

Health insurance

Minimum social salary

which is EUR 251,54 at the index 100

…. at the current index 794,54: 1.998,59 EUR

….. for employees aged 18 and over: 1998,59 EUR

….for employees aged 17 to 18: 1.598,87 EUR

….for employees aged 15 to 17: 1.498,94 EUR

5 times the social salary i.e. 9.992,93 EUR

(index 794,54)

Pension insurance

Accident Insurance

Occupational medicine

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 794,54 of the moving salary scale) amounts on 1 January 2017 to:

Non-qualified employee (251,54 EUR, index 100)

Monthly rate

Hourly rate

18 years completed

1.998,59 EUR

11,5525 EUR

17 years completed

1.598,87 EUR

  9,2420 EUR

15 and16 years completed

1.498,94 EUR

  8,6644 EUR

The level of the minimum social wage for a qualified employee within the meaning of Article L. 222-4. Of the Labour Code amounts on 1 January 2017 to:

2.398,30 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 794,54 the student is entitled to the minimum amounts listed in the table below, graduated due to age.

Remuneration of pupils and students at index 794,54

Monthly rate

Hourly rate

18 years completed

1.598,87 EUR

9,2420 EUR

17 years completed

1.279,09 EUR

7,3936 EUR

15 and 16 years completed

1.199,15 EUR

6,9315 EUR

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