Employee Benefits in Luxembourg, 2022 Update – Key Regulations, Statutory Public and Private Benefits, and Industry Analysis

Luxembourg has a comprehensive social security system. It is based on principles of solidarity that guarantee generous pension benefits and widespread access to extensive health and long-term care services. A uniform social security status was introduced for all private-sector employees in 2009, which led to structural changes in the social security system, the establishment of equal rights for all employees, and the harmonization of contributions and benefits under the social security system.

The Luxembourg employee benefits report provides insights into the wide range of employee benefits such as retirement benefits, long-term and short-term sickness benefits, and medical benefits as well as other state and private benefits offered by employers in Luxembourg.

Key State and Compulsory Benefits in the Luxembourg Employee Benefits Market

The key state and compulsory benefits offered by employers in Luxembourg are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Retirement Benefits in the Luxembourg Employee Benefits Market

The retirement benefit is a compulsory social insurance scheme funded through contributions made by employers, employees, and the government, which covers both employees and the self-employed. It provides income-related benefits based on the duration of affiliation to insurance and income-related contributions. Book III of the Social Security Code (Code de la sécurité sociale) regulates the retirement benefits in Luxembourg.

Short-Term Sickness Benefits in the Luxembourg Employee Benefits Market

Short-term sickness benefit is a compulsory social insurance scheme funded through contributions made by employers and employees. It covers both employees and self-employed by providing income-related benefits. The employer continues to pay the employee’s salary until the 77th day of their incapacity to work under 18 months of the reference period.

Medical Benefits in the Luxembourg Employee Benefits Market

Medical benefits are part of a compulsory social insurance scheme funded through the contributions made by employers and employees. It covers both employees and self-employed persons, and all the recipients of a social security benefit, providing income-related benefits to beneficiaries. Caisse Nationale de Santé (National Health Fund) is responsible for the management and supervision of medical benefits.

Workers’ Compensation Insurance in the Luxembourg Employee Benefits Market

Workmen’s compensation insurance is a compulsory social insurance scheme funded through contributions made by employers and the self-employed, covering both employees and self-employed individuals. It provides benefits in kind and cash depending on the degree of incapacity and the loss of earnings. It covers accidents at the workplace as well as accidents resulting from traveling to or from work. Accident Insurance Association (AAA) is responsible for compensation for work accidents, commuting accidents, and occupational diseases.

Key Private Benefits in the Luxembourg Employee Benefits Market

The key private benefits offered by employers in Luxembourg are retirement benefits, death benefits, disability benefits, medical benefits, accidental death and dismemberment benefits, and other benefits.

Disability Benefits in the Luxembourg Employee Benefits Market

Employers in Luxembourg provide disability benefits to employees directly through income protection policies. The disability may be the result of only an illness at work or an accident at work or an illness or accident in private life. Group accident and group life insurance policies also provide long-term disability benefits.

Medical Benefits in the Luxembourg Employee Benefits Market

There is an efficient state health insurance system in Luxembourg. Employees have automatic health insurance coverage under the mandatory system; however, employers can provide customized supplementary medical insurance to their employees through group health and loss of earnings insurance schemes.

Accidental Death and Dismemberment Benefits in the Luxembourg Employee Benefits Market

Employers provide accidental death and dismemberment benefits through corporate accident insurance plans. These benefits include accidents at work and during transit for work. Employers may choose to include the accidents that occurred 24/7. Furthermore, group life and group income protection plan also provide accidental death and dismemberment benefits.

For more insights on the employee benefits market in Luxembourg, download a free report sample

Market Report Overview

Scope

This report provides a detailed analysis of employee benefits in Luxembourg –

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment, leaves and holidays, and private benefits
• It highlights the economic and regulatory situations relating to employee benefits in Luxembourg

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country
• Assess employee benefits of the market, including state and compulsory benefits and private benefits
• Gain insights into the key employee benefit schemes offered by private employers in the country
• Gain insights into key organizations governing the employee benefits market, and their impact on companies