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					     LIS variable       HMXITSS Mandatory Employee Contributions
       Contents         Employee's social security contributions
(national programmes)   VARIABLE NOT AVAILABLE IN ORIGINAL SURVEY
                        Old Age, Disability, and Survivors pensions , 1911 (wage earners) and 1931 (salaried employees).
                        Current laws: 1987 (unified pension insurance scheme); and 1989 (pension schemes coordination),
                        implemented January 1990.
     Legislation        Sickness and Maternity , 1901, amended in 1992 (sickness insurance and health-sector reform),
                        implemented in January 1994.
                        Work Injury, 1902 (first law), 1925 (social insurance code; current law)


                        All employees (including manual workers and white-collar employees). Also see V2 under
      Coverage          “coverage.”
                        Sickness Insurance Funds (sickness and maternity in-kind and cash benefits)
      Beneficiary       Long-term Care Insurance (long-term care in-kind and cash benefits)
(financed programmes)   Pension Funds (old-age, invalidity and survivors' pensions)
                        The minimum monthly earnings for contribution and benefit calculation purposes are equal to the
                        social minimum wage (€1,402.96).
Basis of assessement    The maximum monthly earnings for contribution and benefit calculation purposes are equal to five
                        times the social minimum wage (€7,014.79).

                        Sickness Insurance (includes maternity): 4.9% (blue-collar workers) or 2.65% (white-collar workers)
                        of earnings. Pensioners contribute 2.55% of the pension and an additional 1% of taxable income for
        Rates           dependents.
                        Pension Insurance: 8.0%.
                        Accident Insurance (Work Injury): None (except for self-employed persons).

     Collection         By withdrawal.
      LIS variable      HMXITSS Mandatory Contributions for Self-Employment
       Contents         Self-employed contributions
(national programmes)   VARIABLE NOT AVAILABLE IN ORIGINAL SURVEY
      Legislation
                        Self-employed persons. Note: whereas contributions are split between employers and employed the
      Coverage          self-employed must pay the full contribution rate.
                        Sickness Insurance Funds (sickness and maternity in-kind and cash benefits)
                        Long-term Care Insurance (long-term care in-kind and cash benefits)
      Beneficiary
                        Pension Funds (old-age, invalidity and survivors' pensions)
(financed programmes)
                        Accident Insurance Funds (employment injuries and occupational diseases temporary benefits and
                        pensions)
                        The minimum monthly earnings for contribution and benefit calculation purposes are equal to the
                        social minimum wage (€1,402.96).
Basis of assessement
                        The maximum monthly earnings for contribution and benefit calculation purposes are equal to five
                        times the social minimum wage (€7,014.79).
                        Sickness Insurance: 5.2% for in-kind benefits and 0.24% for cash benefits.
                        Long-term Care Insurance: 1% of professional earnings, replacement earnings and income from
       Rates            property for both in-kind and cash benefits.
                        Pension Insurance: 16%
                        Accident Insurance: 0.54% and 6%. of payroll, according to the assessed degree of risk.
     Collection         By withdrawal.
    LIS variable      HMXITI Income Taxes
                      Personal income tax (impôt sur le revenu des personnes physiques) , including two special methods of collection of personal income
                      tax:
     Contents
                      Withholding tax on wages and salaries (retenue d'impôt sur les revenus de salaires)
(national schemes)    Withholding tax on income from capital (retenue d'impôt sur les revenus de capitaux)
                      VARIABLE NOT AVAILABLE IN ORIGINAL SURVEY
    Legislation       Law of 4 December 1967 on income tax, as amended.
                                              All individuals whose domicile for tax purposes or usual place of residence is in Luxembourg or who receive
                        Personal income tax
                                              taxable income there.
                                              Workers receiving income from employment or former employment or non-exempted sickness, maternity,
                                              accident or unemployment payments.
                         Withholding tax on
     Coverage
                         wages and salaries   Persons in receipt of retirement or old-age pensions from an independent retirement fund or resulting from
                                               former wage-earning or salaried employment.
                         Withholding tax on     Individuals who receive dividends from a Luxembourg-based corporation (debtor).
                        income from capital
                      Personal income tax: Central, region and local authorities and Social Security.
    Beneficiary       Wages and salaries: Central authority
                      Capital:Central authority
                                               Total net income, less special expenses. Total net income is calculated by taking total net income,
                                               determined separately for each of eight categories of income; losses made in one category of income may
                        Personal income tax    be set off against net income from other categories.

                        Withholding tax on     Net income computed as the difference between receipts and related expenses.
Basis of assessment
                        wages and salaries
                                               * Dividends, profit shares and other proceeds allocated by joint-stock companies.
                         Withholding tax on
                        income from capital    * Profit shares which a fund provider, paid in proportion to the profits, receives from his investment in a
                                               company.
                                               These include:

                                               * Certain payments in cash from legal insurance against sickness and accidents
                                               * Certain allowances (e.g. family allowances)
                                               * Certain types of pension (e.g. war pensions)
                                               * Interest on certain types of government loan
                                               * Capital received from payment of a life insurance
                        Personal income tax    * Private investment income: € 1,500 per year
                                               * 50 percent of the income on capital paid by a company with share capital within the conditions and limits
    Exemptions                                 provided for by the law
                                               * Extra payments of wages for overtime, work at nights, on Sundays and public holidays, under the
                                               conditions and within the limits prescribed by regulation
                                               * Gifts offered by employers to employees, under the conditions and within the limits prescribed by law.

                         Withholding tax on    See the entry under “personal income tax”
                        wages and salaries
                         Withholding tax on
                        income from capital
                                               * Special expenses covered by the flat-rate minimum (mainly interest on debts, insurance premiums); a
                                               personal allowance of € 480 is granted, where special expenses are no higher than this amount;

                        Personal income tax    * Special expenses which may be deducted in addition to the personal allowance (mainly obligatory social
                                               insurance contributions, individual contributions to a supplementary pension scheme, certain donations).
    Deductions
                                               There are a number of allowances. Tax credits are granted for life-long professional training

                         Withholding tax on    See the entry under “personal income tax”
                        wages and salaries
                         Withholding tax on
                        income from capital
                                               Incomes of married couples are treated as a single income for tax purposes and tax due s determined by
                        Personal income tax
                                               the 'splitting' system.
                         Withholding tax on    Personal basis.
     Tax unit
                        wages and salaries
                         Withholding tax on
                        income from capital
                                   Taxpayers are divided into three classes according to the number of their dependents

                                   There is a graduated scale with 17 income bands, to each of which corresponds a rate of tax ranging from
                                   0 to 38 percent; application of the rates varies according to the class to which the taxpayer belongs.

                                   For the first band from 0 to € 9,750, the rate is 0 percent; for the second band from € 9,750 to € 11,400, the
             Personal income tax   rate is 8 percent. Thereafter the rate is 10 percent, subsequently increasing by 2 percent per band. For
                                   income exceeding € 34,500, there is a uniform rate of 38 percent. This basic scale is adjusted periodically
                                   to variations in the weighted consumer price index.
  Rate
                                   To provide resources for the unemployment fund, the liability for personal income tax is increased by 2.5
                                   percent of the amount payable under the above rules.


             Withholding tax on    In accordance with tables of monthly or daily amounts which are drawn up on the basis of the general scale
             wages and salaries    for personal income tax.

              Withholding tax on   15 percent of gross dividends (or 17.65 percent if the debtor pays the tax).
             income from capital
                                   Tax is payable annually on the basis of tax returns.
                                   Tax is paid in quarterly installments in advance and withheld at source on certain forms on income (income
             Personal income tax   from employment, pensions and annuities, income from capital); the advance payments and the tax
                                   withheld at source are deductible against final income tax liability.
Collection
              Withholding tax on   The tax is to be withheld by the employer or the pension fund for the account of the worker or the
             wages and salaries    pensioner.
              Withholding tax on   Tax is withheld by the company at the moment of payment of the dividends.
             income from capital
     LIS variable         HMITSISSI Sickness benefits
                          Death grant (indemnité funéraire)
       Contents           Family leave benefit (prestations en espèces en cas de congé pour raisons familiales)
(national programmes)     Sickness benefit (indemnité pecuniaire de maladie) includes maternity
                          Temporary disability benefit ( work injury) (prestation pour incapacité temporaire de travail)
                          Sickness benefit: July 31, 1901 (first law); Book I of Social Insurance Code (Code des Assurances
                          Sociales) , stemming from law of 27 July 1992. Type of program: Social insurance system. Cash
      Legislation         and medical benefits.
                          Temporary disability benefit: First law: 1902. Current laws: 1925 (social insurance code).
                          Type of program: Social insurance system.
                          Sickness benefit, family leave benefit and death grant: All employees and social security
                          beneficiaries are eligible for medical and dependency benefits. Voluntary membership in the
                          sickness fund for those without compulsory coverage. Special systems for self-employed persons,
                          artisans, and farmers (cash sickness and maternity benefits).

       Coverage           Temporary disability benefit: persons who are engaged in a professional wage earning activity or
                          the self-employed, those who attend a vocational training or a program for their integration or
                          reintegration; covered are also, among others: pupils, students and teaching assistants, delegates
                          attending meetings of the professional chambers of the social security institutions, and persons
                          who take part in emergency relief actions.
                                Death grant          Payable to insured persons' dependents in the event of death.
                                                     The child is under age 5 and receiving the family allowance, and the
                                                     parent was living and working in Luxembourg at the time of the child's
                           Parental leave benefit    birth.

                                                     For cash sickness, medical, and dependency benefits: Membership in
                                                     the sickness fund.
 Qualifying conditions
                          Sickness and maternity For cash maternity benefit and adoption leave: Membership in the fund
                                                 for at least 6 months in the year before the year of the expected date of
                                                 childbirth or the year of adoption.
                                                     Employment injury: injury occurring as a result or at times of work
                            Temporary accident       (including travel between home and work).
                                 benefit             Occupational diseases: table of 55 occupational diseases and noxious
                                                     agents as provided for by the Grand-Ducal Decree of 26 May 1965.
                                                     A lump sum equal to 1/15 of the insured's annual earnings or the
                                Death grant          minimum wage, whichever is higher.
                                                     €1,692.66 a month, during a 6-month period.
                           Parental leave benefit
                                                     Cash sickness benefit: 100% of earnings is payable for up to 52 weeks
                                                     from the first day of incapacity.

                                                 Cash maternity benefit : 100% of earnings, payable for 8 weeks before
       Benefits                                  and 8 weeks after the expected date of childbirth (12 weeks in the case
                          Sickness and maternity of a premature birth, multiple births, or if the mother is breastfeeding her
                                                 child).

                                                     Adoption leave : 100% of earnings is payable for 8 weeks on the adoption
                                                     of a child.
                                                     100% of earnings is payable from the first day of incapacity for up to 13
                            Temporary accident       weeks; thereafter, the benefit is converted to a permanent disability
                                 benefit             pension.
Accumulation with other   Sickness benefits: no accumulation possible with earnings.
       income             Temporary accident benefit: accumulation possible with new earnings.
                          Not applicable for sickness benefits.
      Adjustment          Adjustment of annuities to the wage level at the same time as the adjustment of pensions (see
                          V17).
                                                    Sickness benefit: financed by Sickness Insurance out of employees, self-
                                                    employed, employers, pensioners and unemployed contributions (see
                                                    V2, HMXITSS); 10% of contributions are covered by the State.
                             Financing principle    Temporary accident benefit: financed by Accident Insurance out of
                                                    employers contributions (see V2).
      Financing
                                                     All benefits are liable to taxation. For tax purposes, social security
                                  Taxation           benefits replacing income are treated as wages.
                                                     Sickness benefit: contribution deduction for health care (5%), long-term
                             Contributions from
                                                     care insurance )1%) and pension insurance (8%).
                                  benefits
                                                     Temporary accident benefit: no contributions.
     LIS variable         HMITSILWI Long-term occupational injury and disease benefits
                          Permanent accident pay (rente d'accident permanente) , incl.:
       Contents           - direct pension for permanent incapacity;
(national programmes)     - survivor's benefits in case of death (work injury benefits).

                          First law: 5 April 1902 for Employment injuries and 17 December 1925 for Occupational Diseases.
      Legislation         Current legislation: Book II of the Social Insurance Code (Code des Assurances Sociales) , amended notably by the law of
                          17 November 1997.

                          Employees, apprentices, domestic workers, and self-employed persons. Special systems for public-sector employees,
       Coverage           students, and military personnel.

                                                    * No qualifying period necessary.
                                                    * No minimum level of incapacity giving entitlement to compensation.
                                                    * Assessment by the joint committee for annuities (commission paritaire des rentes) based on
                             Direct pension for     the medical service of the social security organization (contrôle medical de la sécurité sociale) .
                           permanent incapacity     * Review possible only during the 3 years following the fixing of the annuity unless deterioration
                                                    of more than 10%.
 Qualifying conditions

                                                    The insured had 12 months of coverage in the 3 years before death or was a pensioner at the
                              Survivor's benefit    time of death. The pension is payable to the spouse, including a divorced spouse, on the basis
                                (Work Injury)       of years of marriage and number of contributions without regard to either personal income or
                                                    orphans; also payable to orphans.
                                                    85.6% of earnings during the last year.

                                                    Child supplement : 10% of the pension for each child under age 18 (age 27 if a student, no limit
                                                    if disabled) if the insured is assessed as 50% or more disabled. The value of the total
                             Direct pension for     supplement is not to exceed 100% of base salary.
                           permanent incapacity
                                                    Partial disability : A percentage of the full pension in proportion to the assessed degree of
                                                    disability. If the assessed degree of disability is 10% or less, the pension is converted to a lump
                                                    sum after 3 years; or on request if the assessed degree of disability is from 10% to 40%.




       Benefits




                             Survivor's pension                                               Survivor's pension
                               (Work Injury)                                                    (Work Injury)




                          Permanent injury pensions cumulate with new earnings; in case of accumulation with invalidity pension, latter is reduced if
Accumulation with other   together with employment injury pension it exceeds the average of the 5 highest annual earnings or, if this method of
       income             calculating is more favorable, the earnings on which injury pension was based.

                          Benefits are automatically indexed to changes in cost of living and are periodically adjusted according to changes in
      Adjustment          wages.
                          Adjustment of annuities to the wage level at the same time as the adjustment of pensions.
                                                    Financed by Accident Insurance out of self-employed and employers contributions (see V2 and
                             Financing principle    HMXITSS), and a State subsidy of 1/3 of costs of adapting and adjusting pensions.

      Financing                                     Pensions paid during first 13 weeks following the accident are not liable to taxation; thereafter,
                                  Taxation
                                                    they are.
                             Contributions from     None.
                                  benefits
      LIS variable         HMITSILEPD Disability pensions
       Contents           Invalidity pension (pension d'invalidité)
(national programmes)
                          First law: Law of 6 May 1911.
      Legislation         Current legislation: Book III of the Social Insurance Code, in the terms following the Law of 27 July 1987 as amended.

                          All economically active persons in the private and public sectors, including self-employed persons.

                          General system for the private sector.
       Coverage
                          Separate special systems for railway and public-sector employees who entered employment before January 1, 1999, or on or after
                          January 1, 1999, respectively.

                          Risks covered : an insured person who, as a result of prolonged sickness or infirmity, has lost the working capacity to such a degree
                          that he/she is unable to carry out the occupation of the last post or another occupation suited to his/her capacity.
 Qualifying conditions    Minimum period of membership : Under age 65 and unable to perform the usual occupation or any other similar occupation; 12
                          months of coverage during the 3 years before the onset of disability. There is no minimum qualifying period in case of disability
                          resulting from an accident.

                          Duration : from immediately (permanent incapacity) or on expiry of entitlement to sickness benefits (temporary incapacity) until the
                          age of 65, when it is replaced by an old-age pension (insured pension must, until age 50, comply with such rehabilitation or
                          retraining measures as may be laid down by the pension fund; otherwise pension may be suspended).

                          Amount : A flat-rate component of €329.75 ( majoration forfaitaire) per month if insured for 40 years plus an annual increment equal
                          to 1.85% of adjusted lifetime covered earnings ( (majoration proportionnelle).
       Benefits           The disability pension also includes prospective insurance. If disability occurs before age 55, an additional increment is calculated
                          for the period between the date of the onset of disability and age 55 on the insured's imputed average earnings from age 25 to the
                          date of the onset of disability.

                          Partial pension : The flat-rate benefit is reduced by 1/40 for each year less than 40.

                          The minimum disability pension is €1,262.88 a month if the insured has 40 years of effective or prospective insurance.
                          The income from an activity may be cumulated with the pension up to a ceiling comprising the average of the 5 highest annual
                          salaries during the period of insurance; the pension is reduced by the amount of income exceeding this ceiling.
Accumulation with other   In case of receipt of employment injury pension (rente d'accident, see HMITSILWI), reduction of invalidity pension (pension
       income             d'invalidité) if both pensions exceed either the average of the 5 highest annual earnings in the insurance cycle, or, if more
                          favourable, the earnings on which employment injury pension was based.

      Adjustment          Benefits are automatically indexed to changes in cost of living and are periodically adjusted according to changes in wages.
                                                     Financed by Pension Insurance out of employees, self-employed, employers contributions (see V2,
                             Financing principle
                                                     HMXITSS) and a State contribution of 8%.
                                                     For tax purposes, social security benefits replacing income are treated as wages; the same special tax
      Financing                   Taxation
                                                     allowances for persons in gainful employment and pensioners apply.
                             Contributions from      Contributions are deducted for health care (5%) and long-term care insurance (1%).
                                  benefits
      LIS variable        HMITSUDI Disability allowances
                          Benefit for severely handicapped persons (allocation pour personne gravement handicapée) [no
       Contents           new entitlements since 1999, replaced by long-term care insurance]
(national programmes)     Benefit for long-term care of handicapped persons (allocation de l'assurance dependance)
                          [introduced on 1.7.1998]
                          Benefit for severely handicapped persons: Law of 16 April 1979 (first law) as amended (abrogated
      Legislation         in1999).
                          Benefit for long-term care of handicapped persons: Law of 19 June 1998.
                          Benefit for severely handicapped persons: universal.
       Coverage           Benefit for long-term care of handicapped persons: all insured persons subject to sickness
                          insurance (see HMITSISSI) and their family members.

                                                    Payable to seriously handicapped persons aged 3 or over who are unable
                                                    to live without the assistance of a third party if they have been resident in
                            Benefit for severely    Luxembourg for a minimum period of 10 years (for handicapped children
                           handicapped persons      over 3 years, one of the parents must fulfill the residency condition).
                                                    The allowance is not income-dependent.

                                                    No age conditions.
 Qualifying conditions
                                                    The person must have, as a result of an illness or a physical or mental
                                                    handicap, a regular need (of at least 3.5 hours per week) to carry out the
                            Benefit for long-term   essential acts of life (mobility, hygiene and nutrition) for at least 6 months.
                            care of handicapped     The usual in-kind benefit from the long-term insurance can be replaced by
                                  persons           a cash benefit if the needs are lower than 14 hours of assistance per week
                                                    (in case of 7 to 14 hours, only half of the benefit can be substituted in
                                                    cash).

                                                    This data is no longer revised.
                            Benefit for severely
                           handicapped persons

       Benefits                                     Duration: unlimited
                            Benefit for long-term   Amount: Benefits in kind are provided by specialized professional
                            care of handicapped     services according to the need of the dependent person.
                                  persons           Benefit amount per hour: € 47.70.

Accumulation with other
       income
     Adjustment
                                                    Benefit for severely handicapped persons: fully financed by the State.
                                                    Benefit for long-term care of handicapped persons: financed by long-term
                             Financing principle
                                                    care insurance out of employees and self-employed contributions (see
      Financing                                     HMXITSS) and a State contribution of 45% of total expenditure.
                                 Taxation           Benefits are not subject to taxation.
                             Contributions from
                                  benefits          None.
      LIS variable        HMITSILEPO Employment-related old-age pensions
       Contents           Private sector old-age pension (pension de vieillesse du secteur privé)
(national programmes)
                          First law: 6 May 1911.
      Legislation         Current legislation: Book III of the Social Insurance Code, including the last amendments with Law of 27 December 1996.

                          All economically active persons in the private and public sectors, including self-employed persons. General system for the
       Coverage           private sector. Separate special systems for railway and public-sector employees who entered employment before January
                          1, 1999, or on or after January 1, 1999, respectively.
                          Minimum period of membership: 120 months of effective insurance; if, at age 65, the insured does not fulfill the necessary
                          condition of 120 months of insurance to obtain an old-age pension, the contributions paid (except the portion paid by the
                          State) are reimbursed.
 Qualifying conditions    Full pension: 40 years of insurance.
                          Deferred pension: Retirement may be deferred to age 68; a partial pension, combined with part-time employment, is also
                          possible.

                          Amount: The pension comprises two elements: a flat-rate component of €329.75 a month if insured for 40 years and an
                          annual increment equal to 1.85% of adjusted lifetime covered earnings.

                          Partial pension : The flat-rate component of the pension is reduced by 1/40 for each year of insurance less than 40.

                          * Non-contributory periods credited: periods for the rearing of children, education/training periods between the age of 18
       Benefits           and 27, periods during which a dependent was cared for, periods during which an invalidity pension is granted, periods
                          exempted from payment of self-employment contributions, etc.

                          * Minimum pension: s €1,262.88 a month, if insured for 40 years. The minimum pension is reduced by 1/40 for each year
                          less than 40. A minimum pension is not payable if insured for less than 20 years.

                          * Maximum pension: no pension shall exceed 5/6 of 5 times the reference amount, that is €5,846.66 a month;
                          calculation is based on the rules of common law.
Accumulation with other   If salaried activity is exercised for which monthly earnings exceed one third of the minimum social wage, the pension is
       income             automatically reduced by half.

                          Pensions automatically index linked to price development whenever the index varies by 2.5% in relation to the preceding
      Adjustment          index.
                          Adjustment of pensions to level of wages by special law.
                          Financing principle      Financed by Pension Insurance Pension Insurance out of employees, self-employed, employers
                                                   contributions (see V2, HMXITSS) and a State contribution of 8%.
                          Taxation                 For tax purposes, social security benefits replacing income are treated as wages; the same
      Financing
                                                   special tax allowances for persons in gainful employment and pensioners apply.
                          Contributions from       Contributions are deducted for health care (5%) and long-term care insurance (1%).
                          benefits
      LIS variable        HMITSILEPO Old-age pensions for public sector employees
       Contents           Public sector old-age pension (pension de vieillesse du secteur public)
(national programmes)
      Legislation         First law: 26 May, 1954.
       Coverage
 Qualifying conditions

       Benefits
Accumulation with other
       income
     Adjustment
                             Financing principle
                                  Taxation
      Financing
                             Contributions from
                                  benefits
     LIS variable         HMITSILEPO Old-age pensions n.e.c.
       Contents           Supplementary pension for miners and metallurgists (prestation supplémentaire aux ouvriers
(national programmes)     mineurs, métallurgistes)
      Legislation
       Coverage
 Qualifying conditions


       Benefits

Accumulation with other
       income
     Adjustment
                                                   Financed by Pension Insurance Pension Insurance out of employees,
                             Financing principle   self-employed, employers contributions (see V2, HMXITSS) and a State
                                                   contribution of 8%.
                                                   For tax purposes, social security benefits replacing income are treated as
      Financing
                                  Taxation         wages; the same special tax allowances for persons in gainful
                                                   employment and pensioners apply.
                             Contributions from    Contributions are deducted for health care (5%) and long-term care
                                  benefits         insurance (1%).
      LIS variable        HMITSILEPO Early retirement benefit
       Contents           Early retirement pension (pension de vielliesse anticipée)
(national programmes)
                          First law: 6 May 1911.
      Legislation         Current legislation: Book III of the Social Insurance Code, including the last amendments with Law
                          of 27 December 1996.
       Coverage           See HMITSILEPO.
                          From 60 years of age, on condition that 480 months of effective insurance can be proved or
                          assimilated periods can be proved.
 Qualifying conditions    From 57 years of age, on condition that 480 months of effective insurance can be proved.
                          Retirement is necessary.

       Benefits           Amount according to common law (see HMITSILEPO).
                          Accumulation with earnings is limited to earnings resulting from occasional or insignificant activity,
Accumulation with other
                          i.e. earnings less than one third of the minimum social wage (monthly average during the calendar
       income
                          year).
      Adjustment          See HMITSILEPO.
                                                     Financed by Pension Insurance Pension Insurance out of employees,
                              Financing principle    self-employed, employers contributions (see V2, HMXITSS) and a State
                                                     contribution of 8%.
                                                     For tax purposes, social security benefits replacing income are treated as
      Financing
                                   Taxation          wages; the same special tax allowances for persons in gainful
                                                     employment and pensioners apply.
                               Contributions from    Contributions are deducted for health care (5%) and long-term care
                                    benefits         insurance (1%).
     LIS variable         HMITSILEPS Survivors pensions
                          Private sector survivor's pension (pension de veuf, veuve et orphelin du secteur privé)
       Contents
                          Public sector survivor's pension (pension de veuf, veuve et orphelin du secteur public)
(national programmes)
                          NOTE: The information below concerns only private sector survivor's pension!
                          First law: 6 May 1911.
      Legislation         Current legislation: Book III of the Social Insurance Code, including the last amendments with Law
                          of 27 December 1996.
      Coverage            See HMITSILEPO.
                                                     The insured had 12 months of coverage in the 3 years before death or
                                                     was a pensioner at the time of death. The pension is payable to the
                                                     spouse, including a divorced spouse, on the basis of years of marriage
                              Deceased insured       and number of contributions without regard to either personal income or
                                    person           orphans; also payable to orphans.; no qualifying period if death due to
                                                     any kind of accident or work-related illness occurred during affiliation.

                                                    Spouse married to the deceased for at least 1 year, unless there is a
                                  Spouse            child of the marriage or death is caused by an accident.
                                                    Divorced spouse if not remarried.
 Qualifying conditions
                                                    Children up to the age of 18 (27 if continuing full-time studies, no age-
                                                    limit for handicapped orphans), who are legitimate, adopted or natural, as
                                  Orphans           well as orphans having lost both parents on conditions that the insured
                                                    party paid for their maintenance and education during the 10 years prior
                                                    to his decease.
                                                    Parents and direct relatives and collaterals up to second degree are
                                                    treated as widows/ers if different conditions are fulfilled.
                             Other beneficiaries    Survivors who have lived with deceased insured person in the same
                                                    household.
                                                    Amount: Based on the old-age pension, the pension is equal to 100% of
                                                    the flat-rate benefit plus 75% of the insured's annual increment. The
                                                    concurrent drawing of a survivor pension and earnings or other personal
                                                    pension is subject to a limit.

                                                    it is composed of two parts (see V18 and V19S1):

                                                    * total of the flat-rate pension part (majorations forfaitaires) and the
                                                    special flat-rate supplements (majorations forfaitaires spéciales) to which
                              Surviving spouse      the insured has or would have been entitled.

                                                    * 3/4 of the income-related pension part (majorations proportionnelles)
                                                    and of the the special income-related supplements (majorations
                                                    proportionnelles spéciales) to which the insured has or would have been
                                                    entitled.

                                                    Remarriage: pension ceases; redemption grant of 60 month's payments
                                                    if remarried before 50 (36 months' payments over 50), not including
                                                    special flat-rate supplements or special income-related supplements.
                                                    Amount: it is composed of two parts (see V18 and V19S1):
       Benefits
                                                    * 1/3 of the flat-rate pension part and of the special flat-rate supplements
                                                    to which the insured has or would have been entitled.
                           Orphan of one parent
                                                    * 1/4 of the income-related pension part and of the special income-
                                                    related supplements to which the insured has or would have been
                                                    entitled.

                                                    If the orphan is entitled to a pension both in the father's and mother's
                           Orphan of both parents
                                                    right, the higher of the 2 pensions is doubled.
                                                    Amount: calculated in accordance with common law; no specific
                                                    provisions; the insured person's full pension is paid for 3 months to
                                                    survivors who have lived with him in the same household; if the
                                                    deceased was not entitled to pension, survivor's pension paid to
                                                    survivors who lived with him in the same household for the month of
                             Other beneficiaries    death plus 3 subsequent months for an amount equal to the pension to
                                                    which the deceased would have been entitled.
                                                    Maximum for all beneficiaries: 100% of the insured person's pension; if
                                                    the total survivors' pensions exceed this limit, they are reduced
                                                    proportionally.
Accumulation with other   See HMITSILEPO. Accumulation of orphan's pension with family pension is possible.
       income
     Adjustment           See HMITSILEPO.
                                                    Financed by Pension Insurance Pension Insurance out of employees,
                             Financing principle    self-employed, employers contributions (see V2, HMXITSS) and a State
                                                    contribution of 8%.
                                                    For tax purposes, social security benefits replacing income are treated as
      Financing                   Taxation          wages; the same special tax allowances for persons in gainful
                                                    employment and pensioners apply.
                             Contributions from     Contributions are deducted for health care (5%) and long-term care
                                  benefits          insurance (1%).
      LIS variable        HMITSUFACA Child allowances
       Contents           Family allowance (allocations familiales)
(national programmes)
                          First laws: 1947 (employed persons) and 1959 (self-employed persons).

                          Current laws: 1977 (birth allowance); 1980 (maternity allowance); 1985 (family allowance); 1986
      Legislation
                          (beginning of school year allowance); 1988 (education allowance); and 1999 (parental leave).
                          Type of program: Universal system.

       Coverage           All children raised and legally resident in the country.
                          The child is under age 18 (age 27 if a student).
 Qualifying conditions
                          €176.67 a month for one child, €419.50 a month for two, €764.07 a month for three, €1,108.40 a
                          month for four, and €1,452,85 a month for five. In addition, €15.39 a month for each child aged 6 to
       Benefits           11 and €46.18 a month for each child aged 12 or older.

                          Supplementary allowance: €176.67 a month is added for a seriously disabled child.

Accumulation with other   Family allowances can be cumulated with any other income, and are often not taken into account
       income             for means-testing purposes
      Adjustment
                                                     Fully financed by the State (there is a 1.7% employer's contribution, but
                             Financing principle
                                                     this is fully covered by the State).
      Financing                  Taxation            Benefits are not subject to taxation.
                             Contributions from      None.
                                  benefits
      LIS variable        HMITSUFAAM Child / family benefits n.e.c.
       Contents           Beginning of school year allowance (allocation de rentrée scolaire)
(national programmes)
                          First laws: 1947 (employed persons) and 1959 (self-employed persons).

      Legislation         Current laws: 1977 (birth allowance); 1980 (maternity allowance); 1985 (family allowance); 1986
                          (beginning of school year allowance); 1988 (education allowance); and 1999 (parental leave).

       Coverage           Universal.
                          Payable to families with one or more children aged 6 to 18 (age 27 if a student) who are eligible for
 Qualifying conditions    family allowances.
                          €107.70 for one child over age 6 (€153.88 if over age 12), €184.67 per child if there are two
       Benefits           children over age 6 (€230.79 per child if over age 12), and €261.58 per child if there are three or
                          more children over age 6 (€307.77 per child if over age 12).
Accumulation with other
       income
     Adjustment           All allowances are indexed to changes in the cost of living.
                              Financing principle   Fully financed by the State.
                                   Taxation         Benefits are not subject to taxation.
      Financing
                              Contributions from
                                   benefits         None.
     LIS variable         HMITSISUN Unemployment insurance benefits
                          Unemployment benefit (indemnités de chômage complet)
                          Partial unemployment benefit (indemnités de chômage partiel)
       Contents
                          Pre-retirement benefit (indemnité de pré-rétraite): permits enterprises to dismiss structurally
(national programmes)     redundant workers and to re-equilibrate the age structure among the workers within an enterprise.

                          First law: 6 August 1921.
      Legislation         Current legislation: Law of 30 June 1976, as amended; law of 24 December 1990 (pre-retirement
                          benefit). Type of program: Social Insurance.
                          Salaried workers, self-employed persons who have given up their trade and are in search of
       Coverage           salaried employment, recent graduates of schools, and young persons (aged 16 to 28) who are
                          unemployed after their training.

                                                     At least 26 weeks of employment during the last year.
                                                     To maintain benefits must be involuntarily unemployed, fit to work,
                           Unemployment benefit
                                                     available for work, registered for employment, and accept suitable
                                                     employment offers
                                                     Payable to employees normally employed by the enterprise at the time of
                           Partial unemployment      partial unemployment due to weather conditions, in-plant reasons and
 Qualifying conditions
                                   benefit           recession or structural reasons.
                                                     Must be aged 57 years and have fulfilled in the 3 years following the
                                                     conditions for an early old-age pension; must fulfill certain conditions
                           Pre-retirement benefit    related to work record; must not exercise any professional activity other
                                                     than insignificant or occasional activities.
                                                     80% of gross earnings during the 3 months which precede
                                                     unemployment. The allowance cannot be higher than € 3,507.39 or, in
                                                     the event the unemployment exceeds 182 days in a period of 12 months
                                                     € 2,805.91. For the period of complementary benefit the ceiling is fixed at
                                                     € 2,104.44.

                                                     Benefits are paid for 365 calendar days during a reference period of 24
                                                     months. 182 extra calendar days for persons particularly "difficult" to
                           Unemployment benefit      place.

                                                     For unemployed person of at least 50 years of age benefits can be
                                                     extended 12, 9 or 6 months if the insured has 30, 25 or 20 years of
       Benefits                                      affiliation to pension, respectively

                                                     Family supplements: The benefit increases to 85% of earnings if the
                                                     unemployed has dependent children.
                                                     80% of the gross hourly earnings although the benefit cannot exceed 2.5
                           Partial unemployment      times the social minimum wage of of € 8.11 per hour.
                                   benefit           The first 8 hours of each month are not indemnified, the second 8 hours
                                                     is to the employers' charge.

                                                     Amount: 85% of previous gross earnings during first 12 months, 80%
                                                     during second 12 months and 75% during third 12 months.
                           Pre-retirement benefit    The indemnity is paid by employers and partially reimbursed by the
                                                     employment fund.
                          Unemployment benefit: accumulation is not possible in conjunction with other benefits If income
                          from a gainful professional activity exceeds 10% of the maximum threshold of the provided
                          compensation, the unemployment benefit (indemnité de chômage) is reduced by the amount
                          exceeding the provided ceiling.
Accumulation with other
       income             Partial unemployment: No accumulation with other social security benefits or earnings.

                          Pre-retirement benefit: Disqualification from early retirement if the amount of the professional
                          income is over half of the social minimum salary of € 701.48 per month.
                          In line with prices whenever the CPI number varies by 2.5% in terms of the previous expiring
      Adjustment          quotation.
                                                     Paid by the Employment Fund, financed by taxation (solidarity taxes from
                             Financing principle     individuals and legal persons and by a general annual contribution from
                                                     the State).
      Financing                                      Benefits are liable to taxation. For tax purposes, social security benefits
                                  Taxation
                                                     replacing income are treated as wages.
                             Contributions from      Contributions are deducted for health care (5%), long-term insurance
                                  benefits           (1%) and pension insurance (8%).
      LIS variable        HMITSISUN Unemployment compensation benefits n.e.c.
       Contents           Pay/compensation in lieu of notice (indemnité compensatoire de préavis)
                          Severance pay (indemnité de départ)
(national programmes)

      Legislation

       Coverage           All employees.
                                                   The employer may terminate an employment relationship without notice
                                                   or compensation if there is an important ground (“motif grave ”). An
                                                   important ground is every failure which renders the maintenance of the
                                                   employment relationship suddenly and definitely impossible.
                          Pay/compensation in lieu
                                 of notice         If there is no such ground the employer has to pay compensation. Notice
 Qualifying conditions                             must be given where the employer has a real and serious ground not
                                                   amounting to motif grave .


                                                   Employees with a minimum of 5 years' continuous service with the same
                                                   employer who were dismissed other than on the grounds of grave cause
                               Severance pay       and are not in a position to take up an entitlement to the normal old-age
                                                   pension.

                          Pay/compensation in lieu In the case of improper dismissal the judge may award compensation or
                                 of notice         recommend reinstatement.
                                                   Usually a lump-sum, the amount of which varying according to the
                                                   employee's monthly pay averaged over the preceding 12 months and
                                                   length of service; it is subject to a minimum of one month's pay, and after
       Benefits                                    20 years' service is higher for white-collar workers than for manual
                               Severance pay       workers.
                                                   Small employers have the option of giving an extended period of notice in
                                                   lieu of a severance payment, and enterprises in economic difficulties may
                                                   be authorized to pay it in monthly installments, plus interest.

Accumulation with other
       income
     Adjustment
                             Financing principle   Financed by the employers.
                                  Taxation
      Financing
                             Contributions from
                                  benefits         No contributions.
      LIS variable        HMITSISMA Wage Replacement
       Contents           Parental leave allowance (allocation de congé parental)
(national programmes)
                          Maternity cash benefit: July 31, 1901 (first law); Book I of Social Insurance Code (Code des
      Legislation         Assurances Sociales) , stemming from law of 27 July 1992.
                          Parental leave allowance: introduced in 1999.
                          Maternity cash benefit: personally insured women.
       Coverage           Parental leave allowance: all working parents residents.
                                                   Granted when a person leaves his/her professional activity to educate a
                                                   child aged less than 5 and the parent was living and working in
 Qualifying conditions    Parental leave allowance Luxembourg at the time of the child's birth.
                                                   Guarantee of re-employment.
                                                   Duration: any combination between 6 months full-time and 12 months
                                                   part-time.
       Benefits           Parental leave allowance Amount: €1,692.66 a month, during a 6-month period. monthly for full-
                                                   time leave (proportionately reduced for part-time leave).
Accumulation with other   Parental leave allowance: no restrictions.
       income
     Adjustment           All allowances are indexed to changes in the cost of living.
                              Financing principle   Parental leave allowance: fully financed by the State.
                                                    The Parental leave allowance is not subject to taxation.
                                  Taxation
      Financing
                                                    Contribution deduction for health care (5%), long-term care insurance
                             Contributions from
                                                    (1%) and pension insurance (8%) from maternity cash benefit only.
                                  benefits
     LIS variable         HMITSISMA Birth grants
                          Birth allowances (prestations de naissance) , including:
       Contents           - pre-natal allowance (allocation prénatale)
(national programmes)     - birth allowance (allocation de naissance)
                          - post-natal allowance (allocation postnatale)
                          First law: 20 October 1947.
      Legislation         Current legislation:
       Coverage           Universal (all women residents).
                          Evidence of prescribed medical examinations and residence in Luxembourg.
 Qualifying conditions
                          Birth allowances: €1,656.30 is payable in three equal installments as prenatal allowance,
       Benefits           birth grant, and postnatal allowance.

Accumulation with other   No restrictions.
       income
     Adjustment           All allowances are indexed to changes in the cost of living.
                              Financing principle  Fully financed by the State.
                                   Taxation        Benefits are not subject to taxation.
      Financing
                              Contributions from
                                   benefits        None.
      LIS variable        HMITSISMA Child care leave benefits
       Contents           Child-rearing allowance (allocation d'éducation)
(national programmes)
                          First laws: 1947 (employed persons) and 1959 (self-employed persons).

      Legislation         Current laws: 1977 (birth allowance); 1980 (maternity allowance); 1985 (family allowance); 1986
                          (beginning of school year allowance); 1988 (education allowance); and 1999 (parental leave).


       Coverage           Universal.
                          All residents rearing one or more children under age 2 for whom they receive family allowances.
 Qualifying conditions

                          €461.65 a month.
       Benefits
Accumulation with other   See under qualifying conditions.
       income
     Adjustment           All allowances are indexed to changes in the cost of living.
                             Financing principle     Financed by the State.
                                  Taxation           Benefits are not subject to taxation.
      Financing
                             Contributions from
                                  benefits           None.
      LIS variable        HMITSISMA Maternity and other family leave benefits n.e.c.
       Contents           Maternity allowance (allocation de maternité)
(national programmes)
      Legislation         30 April 1980.
       Coverage           All women residents.
                          Residence on the national territory and not having entitlement to insured women's maternity cash
 Qualifying conditions    benefit.
                          A lump sum of €2,954.77 is payable for a 16-week period to persons who have no loss of income
       Benefits           while on maternity leave.

Accumulation with other   Non-cumulative with similar maternity cash benefits or with earnings.
       income
     Adjustment           All allowances are indexed to changes in the cost of living.
                              Financing principle   Fully financed by the State.
                                   Taxation         Benefits are not subject to taxation.
      Financing
                              Contributions from    None.
                                   benefits
      LIS variable        HMITS Military/Veterans/War Benefits
                          War benefits, incl:
       Contents           * war damage benefit (dommage de guerre)
(national programmes)     * captivity pension (rente de captivité)
      Legislation         First law: 13 August 1945.
       Coverage           Universal.
                                                   All nationals who have had a dommage to their person or properties after
                            War damage benefit
 Qualifying conditions                             May 10, 1940.
                             Captivity pension     Soldiers in captivity.
                            War damage benefit     Benefits can take the form of an annuity or State obligations
       Benefits
                             Captivity pension
Accumulation with other
       income
     Adjustment
                             Financing principle   Fully financed by the State.
                                  Taxation         Benefits are not subject to taxation.
      Financing
                             Contributions from    None.
                                  benefits
      LIS variable        HMITSU Invalid carer benefits
       Contents           Constant care allowance (allocation de soins) [no new entitlements since 1999, replaced by long-
(national programmes)     term care insurance, see HMITSUDI]

      Legislation         Law of 22 May 1989, as amended (abrogated in 1999).
       Coverage           Universal.
                          Must be at least 65 years of age, must suffer from a diminution of physical or mental functions to
                          such a point that, in spite of a care, formation, re-education, or utilization of special equipment,
 Qualifying conditions    he/she cannot subsist without the assistance or constant care of a third person. Benefit eligibility is
                          subject to a means test.
                          Same amount as the benefit for severely handicapped persons (see HMITSUDI), usually paid to the
                          carer.
       Benefits           Since 1.1.99, constant care benefit was suspended and long-term care insurance (see HMITSUDI)
                          foresees payment of social contributions plus leave benefits for carers of long-term handicapped
                          persons.
Accumulation with other   The income of the person receiving care must be, together with that of his/her spouse, lower than
       income             2.5 times the minimum social wage.

      Adjustment
                             Financing principle     Financed out of State Budget.
                                  Taxation           Benefits are not subject to taxation.
      Financing
                             Contributions from
                                  benefits           None.
      LIS variable        HMITSUED Education benefits
       Contents           Study grant (bourses d'études)
(national programmes)
      Legislation
       Coverage

 Qualifying conditions

      Benefits
Accumulation with other
       income
     Adjustment
                             Financing principle
                                  Taxation         Benefits are not subject to taxation.
      Financing
                             Contributions from
                                  benefits
      LIS variable        HMITS Other social insurance benefits n.e.c.
       Contents           Subsidies from public administration (subsides des pouvoirs publics - Agriculture, Fonds des
(national programmes)     calamités, ...)
      Legislation
       Coverage           Universal.
 Qualifying conditions    Farmers who have gone through exceptional professional calamities.
        Benefits          Subsidies or loans.
Accumulation with other
        income
      Adjustment
                             Financing principle    Financed by the State.
                                  Taxation
      Financing
                             Contributions from
                                  benefits          None.
     LIS variable         HMITSAGEN General social assistance benefits
                          Guaranteed Minimum Income (Revenu Minimum Garanti - RMG) , including:
       Contents           * complementary allowance (allocation complémentaire)
(national programmes)     * integration allowance (indemnité d'insertion)

                          First law: Law of 26 July 1986.
      Legislation         Current legislation: Law of 29 April 1999 (created a guaranteed minimum income)

       Coverage           Universal.
                                                    Complementary allowance is for the recipients not available for work or not able to
                                                    work. In addition:

                                                    * It is for an unlimited period of time.
                                                    * There are no nationality requirements.
                                                    * Persons resident on Luxembourg territory and having resided in the country for at
                                                    least 5 years during the last 20 years. This residence condition is not required for
                                                    EU or EEA citizens nor for refugees.
                                                    *Must be at least 25 years of age; exceptions for persons unable to work, who are
                              Complementary
                                                    looking after a child or an invalid.
                                allowance
                                                    *Must be ready to use all the opportunities up as to improve his/her own situation.
                                                    * Must have asserted their rights to social allowances and alimentary claims.
 Qualifying conditions
                                                    ( Should not have abandoned or reduced his/her job of his/her own free will, without
                                                    giving important and real justifications or should not have been dismissed for
                                                    serious reasons.

                                                    Social assistance is complementary to all other subsistence allowances and is
                                                    provided as a last resort (safety net).

                                                    Integration allowance is for the recipients, younger than 60 years, able to work and
                                                    not receive an unemployment allowance or participating in a professional insertion
                            Integration allowance   measure organized by the employment administration, that follows professional
                                                    or/and social integration measures. Also see the “complementary allowance” entry
                                                    for additional qualifications.
                                                    Monthly benefit amounts excluding family allowances:

                                                    Singles:                                              €      999.35
                                                    Couples without children:                                 € 1,499.05
                              Complementary         Couple with 1 child (10 years):                            € 1,589.99
                                allowance           Couple with 2 children (10 and 12 years):                   € 1,680.93
                                                    Couple with 3 children (8, 10 and 12 years):                € 1,771.87
       Benefits
                                                    Single parent family with one child (10 years):             € 1,090.29
                                                    Single parent family with 2 children (10/12 years):          € 1,181.23

                                                    is equivalent to the minimum wage applied for the non-qualified salaries (1503
                                                    euros/month for a full time job on 1.10.2005) to encourage the recipients to take part
                            Integration allowance   in the measures of professional and social integration.

                          The entire gross revenue, possessions and replacement or supplementary social security benefits (excluding
Accumulation with other
                          family allowances, maternity benefits and long-term care benefits).
       income
                          There is an automatic adjustment in line with changes in consumer prices when the index varies by more than
      Adjustment          2.5% of the preceding figure. There is also a wage adjustment.
                             Financing principle    Financed by the State.
                                  Taxation          Taxation according to the common fiscal law.
                                                    Complementary allowance: health care insurance and long term care insurance.
      Financing
                             Contributions from     Integration allowance: health care insurance, dependent insurance and pension
                                  benefits          insurance contributions.
      LIS variable        HMITSAGEN General social assistance benefits
                          Benefits from National Solidarity Fund (autres prestations du Fonds National) , incl.:
                          * compensatory allowance (allocation compensatoire de vie chère) [no new entitlements since
       Contents           1989]
(national programmes)     * advance on maintenance payments (avances de pensions alimentaires)
                          * heating allowance (allocations de chauffage)
                          Social help (aide sociale publique)

                          Compensatory allowance: Law of 13 June 1975 (first law), abrogated in 1989.
      Legislation         Advance maintenance pensions: Law of 26 July 1980 (first law).
                          Heating allowance: Regulations of 18 February 1983 (first law).
       Coverage           Universal.
                                                  Payable to beneficiaries of pensions whose revenues are below a certain
                          Compensatory allowance ceiling.

                           Advance maintenance     Payable to single parents whose ex-partner does not comply to the
                                payment            obligation of maintenance payment.
 Qualifying conditions       Heating allowance
                                                   Cash subsidies from the Solidarity Service of the Ministry of Family and
                                                   Solidarity or from municipalities, payable in individual situations of
                                 Social help       financial stress, such as non-payment of maintenance, too many debts,
                                                   unemployment, divorce, etc.
                                                 Differential amount between a lump-sum fixed by law and the 2.5% of all
                          Compensatory allowance pensions received.

                           Advance maintenance
       Benefits                 payment
                            Heating allowance
                                                   The amounts are at the discretion of the public authority for each
                                 Social help       individual case.
Accumulation with other
       income
     Adjustment
                             Financing principle   Financed by the State.
                                  Taxation         Benefits are not subject to taxation.
      Financing
                             Contributions from    None.
                                  benefits
The present document draws extensively from the following sources:

1. "MISSOC - Social Protection in the EU Member States and the European Economic Area - Situation on 1
January 2000", European Commission.
2. Legislation of Luxembourg (see http://www.legilux.lu)
3. Web site of the Ministry of Social Security (http://www.etat.lu/MSS/).
4. Web site of the Centre Commun de la Sécurité Sociale (http://www.ccss.lu/).
5. Inventory of taxes in the Member States of the European Union, 17th edition - situation : 01/01/1999
(http://europa.eu.int/comm/taxation_customs/publications/info_doc/taxation/txinventory/tax_inventory17ed_en.pdf

ADDITIONAL SOURCES:

8. http://www.ssa.gov/policy/docs/progdesc/ssptw/2004-2005/europe/luxembourg.html
9. Taxes in Europe info either: http://ec.europa.eu/taxation_customs/taxinv/showresults.do

or http://ec.europa.eu/taxation_customs/taxinv/welcome.do
10. http://ec.europa.eu/employment_social/labour_law/docs/termination_emp_relation_report_updated_en.pdf

11. http://www.peer-review-social-inclusion.net/peer-reviews/2005/minimum-income-
policies/05_BE_com_LU_en_051031.pdf

				
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