Thomson Reuters Practical Law | Regulation of state and supplementary pension schemes in Luxembourg

Sep 03, 2026

Expertises
Employment, Compensations & Benefits
A Q&A guide to pensions law in Luxembourg.
 
The Q&A gives a high-level overview of the regulation of national government pensions and supplementary pensions. On national government pensions, it covers employer/employee contributions; national government pension age and monthly amount; and the public pensions body. On supplementary pensions, it covers the provision of supplementary schemes; the requirements to receive vested rights and disclosure/indexing/revaluation requirements; funding and solvency requirements; pension plan investment; member transfers; the regulatory body; applicable tax reliefs on contributions and approval/registration requirements; and the tax treatment of scheme investments and payments to members. Legal protection of employees' pension rights on a business transfer, together with participation in pension schemes, employer insolvency protection and overall scheme solvency, are also included.

1. Do employers and/or employees make pension contributions to the government in your jurisdiction?

In Luxembourg, all persons engaged in a professional occupation (whether employed or self-employed) or drawing a work-related benefit (sickness benefit, maternity benefit, workplace accident compensation, or unemployment benefit) are covered by the general pension insurance scheme.

Public sector agents (that is, those employed by the state, the local authorities or the Luxembourg rail operator CFL) are subject to a special pension regime with its own specific conditions.

The statutory general pension insurance scheme covers both old-age pensions and invalidity or survivors' pensions. Since 1 January 2026, it is financed by a flat rate of 25.5% of capped employment income supported in equal shares by employers (8.5%), employees (8.5%), and the state (8.5%). This flat rate is fixed until 2032. Employment income is capped at five times the minimum social wage (that is, EUR13,856.65 at index 992.24 as of 1 June 2026).

The statutory pension scheme also includes public health insurance and long-term care insurance.

Follow the link to read the full version of the Pension Law Luxembourg Guide.

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