You will find below a summary of the main social parameters applicable on 1st January 2025. The changes are identified in bold.
Minimum Social Wages (SSM)
INDEX 944.43 |
EUR |
EUR |
|
Hourly rate |
Social minimum wage full time |
| Non-qualified worker: | ||
18 years old and more, SSM |
15.2473 |
2,637.79 |
17 - 18 years old: 80% of the SSM |
12.1979 |
2,110.23 |
15 - 17 years old: 75% of the SSM |
11.4355 |
1,978.34 |
Qualified workers: |
18.2968 |
3,165.35 |
Remuneration of pupils and students employed during the school holidays and trainees
INDEX 944.43 |
EUR |
EUR |
Pupils and students during the school holidays |
Hourly rate |
Social minimum wage full time |
Who reached 18 years old |
12.1979 |
2,110.23 |
Who reached 17 years old |
9.7583 |
1,688.19 |
Who reached 15 and 16 years old |
9.1484 |
1,582.68 |
INDEX 944.43 |
EUR |
EUR |
Trainees |
Hourly rate |
Social minimum wage full time |
30% of the minimum social wage for unskilled employees if compulsory internship of ≥ 4 weeks |
4.5742 |
791.34 |
Unskilled trainees |
|
|
40% of the minimum social wage for unskilled employees if practical training of 4-12 weeks |
6.0989 |
1,055.12 |
75% of the minimum social wage for unskilled employees if practical training of 12 up to 26 weeks |
11.4355 |
1,978.34 |
Trainees who successfully completed a first cycle of higher education (BTS or bachelor) |
|
|
40% of the minimum social wage for qualified employees if practical training of 4-12 weeks |
7.3187 |
1,266.14 |
75% of the minimum social wage for qualified employees if practical internship of 12 up to 26 weeks |
13.7226 |
2,374.01 |
Maximum basis for social contributions (except dependence insurance not limited to any cap) at current index 944.43
Monthly maximum in EUR |
13,188.96 |
Annual maximum in EUR |
158,267.58 |
Unchanged employee’s rates for social contributions in Luxembourg
In % |
For periodic remuneration |
For non-periodic remuneration and fringe benefit |
Illness health expense |
2.80 |
2.80 |
Illness cash benefits |
0.25 |
|
Pension |
8.00 |
8.00 |
Dependence (*) |
1.40 |
1.40 |
(*) Tax allowance equal to one fourth of the non-qualified social minimum salary for minimum 150 hours per month.
Unchanged employer’s rates for social contributions in Luxembourg
In % |
For periodic remuneration |
For non-periodic remuneration and fringe benefit |
Illness health expense |
2.80 |
2.80 |
Illness cash benefits |
0.25 |
|
Pension |
8.00 |
8.00 |
Accident at work |
0.70(*) |
0.70(*) |
Health at work |
0.14 |
0.14 |
(*) The rate of Accident at work depends on a bonus/malus coefficient (from 0.85 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 1st April Y-2 to 31st March Y-1.
Updated employer’s rates for social contributions in Luxembourg
In % |
For periodic remuneration |
For non-periodic remuneration and fringe benefit |
| Employer mutuality: Class 1 (financial absenteeism rate 0%-<0.65%) |
0.07 |
|
| Employer mutuality: Class 2 (financial absenteeism rate 0.65%-<1.60%) |
0.99 |
|
| Employer mutuality: Class 3 (financial absenteeism rate 1.60%-<2.50%) |
1.48 |
|
| Employer mutuality: Class 4 (financial absenteeism rate >=2.50%) |
2.64 |
|
Contact us
Vinciane Istace
Advisory Partner, People Experience and Change Leader | People Process Outsourcing Leader, PwC Luxembourg
Tel: +352 621 332 112
Advisory Director, People Process Outsourcing (PPO), PwC Luxembourg
Tel: +352 621 336 244