Social Contributions in Luxembourg: Complete Guide 2025

The Luxembourg Social Protection System

Luxembourg has a comprehensive social protection system, financed by contributions shared between employers and employees.

Distribution of Social Contributions

Social contributions represent approximately 28% of gross salary, distributed as follows:

Employee Contributions (12.45%)

• Pension insurance: 8% of gross salary
• Health insurance: 3.05% of gross salary
• Long-term care insurance: 1.4% of gross salary

Employer Contributions (15.55%)

• Pension insurance: 8% of gross salary
• Health insurance: 3.05% of gross salary
• Long-term care insurance: 1.4% of gross salary
• Accident insurance: 1% of gross salary
• Employers' mutual fund: 2.1% of gross salary

Social System Benefits

Health Insurance

• Medical reimbursement: 80-100% depending on procedures
• Hospitalization: Full coverage
• Medications: Reimbursement according to positive list
• Sick leave: Salary maintenance

Pension Insurance

• Old-age pension: From age 65
• Early pension: Possible from age 60 under conditions
• Calculation: Based on contribution years and salaries
• Minimum pension: Guaranteed for 40 contribution years

Our calculator automatically integrates all these contributions to give you your precise net salary according to your situation.