Social security contribution - Employees

    Generic part

    Social security contribution (Employees)
    Contributions sociales
    LU - Luxembourg
    EUR
    Date
    Year
    1925/12/17
    2018/01/01
    2018/03/13 13:54:57
    One single general rate applicable on all income sources
    Different rates per income source

    Contact information

    Administration

    Service

    Website

    E-mail

    Telephone

    Who sets

    The tax rate is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The tax base is set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    The reliefs are set by

    • Central authority
    • Regional authority
    • Local authority
    • Social security

    Beneficiary

    • Central authority
    • Regional authority
    • Local authority
    • Social security
    • Others

    Geographical Scope

    LU - Luxembourg
    No Yes

    Taxpayers

    Who is liable for Social Security Contributions for employees?

    • Employer
    • Employee
    • Other:

    Coverage

    Employees pay social security contributions for:

    • Pension
    • Health care
    • Unemployment
    • Child care
    • Work-realted illneseses and/or accidents
    • Educational leave
    • Maternity leave
    • Others:

    Basis of assessment

    As a general rule, the employee's income subject to Social Security Contributions includes:

    • Employment income
    • Income from business or self-employed activities
    • Income from sport and entertainment activities
    • Benefits in kind
    • Company car
    • Low-interest loans
    • Stock options
    • Meal, sport, cultural cheques
    • Health insurance
    • Computer and IT services
    • Phone and telecommunications services
    • Parking
    • Public transport
    • Day-care for children
    • Meals at cantine
    • Accommodation
    • Income from pension
    • Owner-occupied immovable property
    • Dividends
    • Interests from government bonds
    • Interests from corporate bonds
    • Interests from special savings accounts
    • Interests from deposits
    • Royalties
    • Income from renting immovable property
    • Income from renting movable property
    • Capital gains on movable property
    • Inheritance
    • Annuities from life insurance
    • Prizes and awards
    • Scholarships
    • Income from occasional activities
    • Revenues from donations and gifts
    • Revenues from lotteries and games activities

    Income considered

    Domestic income
    Worldwide income

    Domestic-source income of non-residents is:

    Subject to Social Security Contributions
    Not subject to Social Security Contributions

    Bases and rates of social security contributions paid on the income of employees and manual workers

    • Rates are identical
    • Bases are identical

    Rate or Amount of the contribution

    Rate/amount for Social Security Contributions paid by employees

    12.45 %

    Capped contributions

    • No cap
    • Cap in % of the tax base :
    • Cap in monetary units :
    9,992.93
    • Multiple caps :

    Pension

    Rate/amount for Social Security Contributions paid by employees

    Capped contributions

    • No cap
    • Cap in % of the tax base :
    • Cap in monetary units :
    • Multiple caps :

    Health care

    Rate/amount for Social Security Contributions paid by employees

    Capped contributions

    • No cap
    • Cap in % of the tax base :
    • Cap in monetary units :
    • Multiple caps :

    Unemployment

    Rate/amount for Social Security Contributions paid by employees

    Capped contributions

    • No cap
    • Cap in % of the tax base :
    • Cap in monetary units :
    • Multiple caps :

    Child care

    Rate/amount for Social Security Contributions paid by employees

    Capped contributions

    • No cap
    • Cap in % of the tax base :
    • Cap in monetary units :
    • Multiple caps :

    Work-related illnesses and/or accidents

    Education leave

    Rate/amount for Social Security Contributions paid by employees

    Capped contributions

    • No cap
    • Cap in % of the tax base :
    • Cap in monetary units :
    • Multiple caps :

    Maternity leave

    Rate/amount for Social Security Contributions paid by employees

    Capped contributions

    • No cap
    • Cap in % of the tax base :
    • Cap in monetary units :
    • Multiple caps :

    Others

    Rate/amount for Social Security Contributions paid by employees

    Capped contributions

    • No cap
    • Cap in % of the tax base :
    • Cap in monetary units :
    • Multiple caps :

    Surcharge

    • A % of the tax base :
    • A lump-sum amount :
    • A tax surcharge :

    Reduction, Allowances, Credits

    Reduction :

    • No reduction
    • A lump-sum amount
    • A % of the tax base :
    • Based on salary
    • Capped

    Allowances :

    Credits :


    Tax due date

    Payment of Social Security Contributions

    Monthly
    Quarterly
    Annually
    Other

    Tax collector

    General comments

    Economic function

    • Consumption
    • Labour Employed (paid by employers and employees)
    • Labour Non-employed
    • Capital income: corporations
    • Capital income: income of households
    • Capital income: income of self-employed
    • Capital stocks

    Environmental taxes

    • Energy
    • Transport
    • Pollution/resources

    Tax revenue

    d613ce
    Year Annual tax revenue (in millions) % of GDP % of total tax revenue -
    2016
    2,645.8
    4.9637 %
    13.0286 %
    2015
    2,568.9
    4.9805 %
    13.2728 %
    2014
    2,444.4
    4.906 %
    13.0373 %
    2013
    2,377.99
    5.114 %
    13.3139 %
    2012
    2,273.03
    5.1528 %
    13.3812 %
    2011
    2,132.19
    4.9397 %
    13.2901 %
    2010
    2,012.18
    5.0082 %
    13.3161 %
    2009
    1,932.6
    5.2266 %
    13.6207 %
    2008
    1,830.7
    4.8014 %
    13.0304 %
    2007
    1,691.04
    4.5484 %
    12.5296 %
    2006
    1,514.93
    4.4809 %
    12.4944 %
    2005
    1,410.74
    4.6976 %
    12.3869 %
    2004
    1,308.21
    4.683 %
    12.7725 %
    2003
    1,224.86
    4.6772 %
    12.4122 %
    2002
    1,158.41
    4.6162 %
    12.2877 %
    2001
    1,098.48
    4.6209 %
    12.2343 %
    2000
    994.13
    4.3074 %
    11.5417 %

    Footnotes