Effective Dates: 08/01/2022 - Present Previous | Next

TN 5 (08-22)

GN 01733.015 Benefits, Coverage, and Contributions under the Luxembourg System

A. Overview of the Luxembourg social security system

Luxembourg provides old age (retirement), survivors, and invalidity (disability) benefits through a two-tier social insurance program.

• The first tier pays benefits proportional to the total length of time the worker works in Luxembourg. The benefit equals 1/40 of a flat-rate amount for each year of the worker’s coverage up to 40 years; and

• The second tier pays earnings-related benefits based on a percentage of the worker’s total lifetime earnings and years of coverage.

In general, Luxembourg social security covers persons working in Luxembourg through contributions.

B. Types of coverage

1. Compulsory contributions

Covered employees and their employers, as well as self-employed workers, including public sector workers who entered the labor force after December 31, 1998, must make compulsory contributions based on a percentage of the worker’s earnings.

2. Voluntary contributions

Luxembourg permits workers who are not subject to compulsory contributions, and who meet certain qualifying conditions, to make voluntary contributions to build future benefit rights.

NOTE: Separate systems cover public sector workers who entered the labor force before January 1, 1999.

3. Retroactive contributions

Retroactive contributions are possible for periods of no work or reduced work for family responsibilities if the insured:

  • •

    Is a resident of Luxembourg; and

  • •

    Is younger than age 65 with at least 12 months of contributions; and

  • •

    Is not entitled to any pension.

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0201733015
GN 01733.015 - Benefits, Coverage, and Contributions under the Luxembourg System - 08/01/2022
Batch run: 08/01/2022
Rev:08/01/2022