Payroll Newsflash

Increase in social minima, cross-border workers and car benefit in kind

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Increase in social minima

Following discussions between union and social representatives, the qualified and non-qualified minimum social wage was increased by 3.2% in January.

Qualified minimum social wage

2.864,88 €

Non-qualified minimum social wage (18+ years)

 2.387,40 €

Non-qualified minimum social wage (17 to 18 years old)

1.909,92 €

Non-qualified minimum social wage (15 to 17 years)

1.790,55 €

Maximum contributory base

11.936,98 €

Also, the ceiling to benefit from the Crédit d’Impôt Salaire Social Minimum (CISSM) of 70€ / month is now increased to 3.000€ gross per month.

Some adjustments concerning the single-parent tax credit (CIM) are also to be considered. The maximum amount of CIM granted is now 2.505€.

The ceiling to benefit from the CIM is also reassessed to 60.000€.


Cross-border workers

Social Aspect:

Except in Covid period, a cross-border employee who would work more than 25% of his working time in his residency country would no longer be registered under the Luxembourg social security system, but would be affiliated under the social security system in his residence country.

The transitional period allowing to exceed this threshold of 25% maximum presence in the country of residence is extended until June 30, 2023.

Tax Aspect:

The tax tolerance thresholds for neighbor countries will be the following as from January 1, 2023 :

  • 34 days for France
  • 34 days for Belgium
  • 19 days for Germany

It should be remembered that all the days worked outside of Luxembourg must be taken into account for the calculation of these thresholds.

The calculation covers all days spent outside the Grand Duchy of Luxembourg (training, seminars, business trips, homeworking...).

It is the employer's responsibility to monitor all of those days and to ensure compliance with social and tax measures in case the thresholds are exceeded.


Car benefit in kind

New rates are applicable for the calculation of the car benefit in kind as from January 2023.

CO2 Emissions

Vehicle without diesel engine

Vehicle with diesel engine

Electric vehicle

≤ 18kWH/

100 km

Electric vehicle

> 18kWH/

100 km

0-50 g/km





50-80 g/km



80-110 g/km



110-130 g/km



> 130 g/km




The rates should be adjusted for vehicles with a lease agreement signed in 2022 and registration made in 2022, as from January 1, 2023.

This taxation also applies to vehicles with a contract that will be signed in 2024 and registered until December 31, 2025.

Then, vehicles that will be registered from January 1, 2025 and with a leasing contract that will be signed after January 1, 2025 will be taxed as follows:

100% Electric Vehicles

Other engines



≤18kWh/100 km

 >18kWh/100 km






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