Social parameters for 2019

03/01/19

Please find hereunder a summary of the main social parameters applicable on 1st January 2019 with an increase of the social minimum salaries, new lower rates for employer’s mutuality and a reform in the rate of accident at work. 

Social minimum salaries

INDEX 814.40 EUR EUR
Non-qualified worker Hourly rate Monthly Gross salary
For 18 year old and more 11.9717 2,071.10
From 17 till 18 year old : 80 % 9.5773 1,656.88
From 16 till 17 year old : 75 % 8.9788 1,553.33
Qualified worker 14.366 2,485.32

Maximum basis for social contributions (except dependence insurance not limited to any cap) at current index 814.40

Monthly maximum in EUR 10,355.50
Annual maximum in EUR 124,266

Unchanged employee’s rates for social contributions in Luxembourg on 1st January 2019

In % For periodic remuneration For non-periodic remuneration and fringe benefits
Illness health expense 2.80 2.80
Illness cash benefits 0.25  
Pension 8 8
Dependence (*) 1.4 1.4

(*) Tax allowance equal to one fourth of the non-qualified social minimum salary for minimum 150 hours per month.

New employer’s rates for social contributions on 1st January 2019

In % For periodic remuneration For non-periodic remuneration and fringe benefits
Illness health expense 2.80 2.80
Illness cash benefits 0.25  
Pension 8 8
Accident at work 0.8(*) 0.8(*)
Health at work 0.11 0.11
Employer Mutuality    
Class 1 0.41  
Class 2 1.07  
Class 3 1.63  
Class 4 2.79  

(*) The rate of Accident at work depends on a bonus/malus coefficient (from 0.9 to 1.5) defined and displayed by the Association d’Assurance Accident. This coefficient is based on the class of risk and the number of accidents at work in the company (professional sickness and commuting accidents are excluded) over the period from 1stApril Y-2 to 31st March Y-1.

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