Social security

How does Luxembourg's social security system work?

The Luxembourg social security system provides cover and social benefits to all residents as well as individuals carrying out a professional activity in the Grand Duchy. Any person working in Luxembourg must be registered by their employer with the Joint Social Security Centre (CCSS) or register themselves as a self-employed worker. Certain people, such as residents working abroad or occasional workers, may register with the CCSS on a voluntary basis. Moreover, family members who are dependent on the insured person, and who are not personally insured, benefit from co-insurance.

All insured persons are entitled to universal and comprehensive cover through the various social security funds, this includes any associated benefits:

• sickness;
• accidents at work and occupational illnesses;
• maternity and the family;
• pensions and early retirement;
• disability and long-term care;
• unemployment;
• social inclusion income (REVIS).

The social security contributions payable by employees are set by the CCSS according to the level of salary and are deducted from the person's income every month.

Social security is administered by public bodies that are managed by the different social partners. The Ministry of Health and Social Security and the General Inspectorate of Social Security play a major role in the design and control of the sector.

Healthcare and reimbursements

As soon as the employer has notified the CCSS, the latter will register the employee with one of the four funds:

• the National Health Fund (CNS) for the private sector;
• the Health Insurance Fund for Civil Servants and Public Employees (CMFEP);
• the Health Insurance Fund for Municipal Civil Servants and Employees(CMFEC);
• the Medical Aid Fund of Luxembourg's National Railway Company.

When the person is registered, they will receive a national insurance card with a 13-digit registration number, which must be presented each time the person uses a healthcare provider (doctors, dentists, hospitals, etc.).

The health funds reimburse a significant proportion of healthcare costs, such as medical or therapeutic consultations. In principle, the patient pays for the whole healthcare service and is reimbursed for part of the costs. However, since March 2024, doctors and dentists have been able to opt for Direct Immediate Payment (DIP). Under this system, the patient pays only his/her share and the doctor is reimbursed by the health insurance fund. The use of the DIP remains optional - ask your doctor about its implementation.

Individuals wishing to benefit from more comprehensive cover can sign up for a voluntary mutual insurance such as the "Caisse médico-complémentaire mutualiste" (CMCM) or take out additional health insurance with a private insurer.

Pension insurance: everything you need to know about the pension system

Any person working in the private sector or receiving a replacement income in the Grand Duchy is covered by the general pension scheme. Individuals are registered with the Caisse Nationale d'Assurance Pensions (CNAP), which also provides disability and survivor's benefits. In addition to the general pension insurance scheme, there are special pension schemes for public sector employees and for employees of Luxembourg's national railway company.

This first pillar of the retirement provision is covered by monthly pension contributions payable by the employee and employer, amounting to 8% of gross income. In order to qualify for an old-age pension, the insured person must have reached the age of 65 and have paid contributions for at least 10 years (120 months). An early retirement pension may be granted under certain conditions from the age of 57.

A second pillar of the retirement provision is made up of complementary pension schemes set up voluntarily by companies. A third pillar comprises complementary pension insurance offered by private insurance companies and banks.