Pension: reform of 19 December 2025
The reform provides for a progressive adjustment of several pension system parameters, in particularly with respect to the required contribution period and the conditions for early retirement. These measures will be implemented gradually over the coming years.
The pension contribution rate is now set at 17% (EE and ER contribution). All social parameters are freely available for consultation on the website of the Centre Commun de la Sécurité Sociale: https://ccss.public.lu/fr/parametres-sociaux.html
Digitalisation: electronic certificate of incapacity for work
The National Health Fund (CNS) continues to modernise the management of incapacity of work through the rollout of the electronic certificate of incapacity for work (eCIT). Where technical conditions allow, this system enables the digital transmission of the certificate directly to both the CNS and the employer.
At this stage, this change only affects the transmission methods: Existing legal obligations regarding the notification of the incapacity for work to the CNS remain unchanged.
Profit-sharing bonuses: administrative simplification
The electronic notification procedure for profit-sharing bonuses is being updated to make it clearer and more flexible. From now on, this notification must be made by 1 March of the year following the tax year in question.
Tax relief: sharing child benefit in cases of shared custody
In cases of shared custody with shared child benefit, one of the parents may be granted tax relief. This applies to the parent who is not in tax bracket 1A, when the child is attached to the other parent's household for tax purposes. The allowance can be up to £922.50 per child and the amount varies according to the income of the parent concerned. The application must be made when filing tax returns or annual statements for the years 2025 and 2026.
Contact
Our Human Capital Services team (HumanCapitalServices@lu.gt.com) remains at your disposal to assist you in integrating these new features into your payroll processes and their operational implementation, ensuring full security and compliance.