For the United States, the agreement applies to the coverage under Federal Old-age, Survivors, and Disability Insurance (OASDI) program (including the taxes financing the OASDI system - the Federal Insurance Contributions Act (FICA) taxes for employment, the Self-Employment Contributions Act (SECA) taxes for self-employment, and the Medicare portion of these taxes). If an employee is exempt from U.S. Social Security coverage under this agreement, neither the employee's nor the employer's share of the FICA tax is due as long as the exemption is effective. A self-employed person is exempt from paying SECA taxes (equivalent to the employee and the employer shares of the FICA tax) for any period the exemption is effective.

For Luxembourg, the agreement applies to social security coverage and taxes that finance old-age, invalidity, and survivors pensions insurance; sickness insurance, accident and occupational disease insurance, unemployment insurance, and family allowances.