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.