Social Contributions in Luxembourg (2026): Pension, Health and Dependency
Luxembourg employees pay social contributions to the CCSS: 8.5% for pension, 3.05% for health insurance (maladie), and 1.4% for long-term care (dependance). Pension and health are capped at EUR 13,518.68 gross per month; the dependance contribution has no ceiling but starts above a monthly franchise. Verify with the CCSS (ccss.lu).
The three employee contributions
Employees contribute through the Centre commun de la securite sociale (CCSS): 8.5% for pension insurance, 3.05% for health/sickness insurance (maladie), and 1.4% for long-term care insurance (assurance dependance). Pension and health are matched by an equal employer contribution; the dependance contribution is paid by the employee only. Together the employee side is about 12.95% of gross before the dependance franchise is applied.
The ceiling and the dependance franchise
Pension and health contributions apply only up to a social-security ceiling of EUR 13,518.68 gross per month (five times the minimum social wage). Salary above the ceiling is exempt from those two contributions. The dependance contribution has no upper ceiling, but it is charged only on the part of income above a monthly franchise of EUR 901.25. So the 1.4% dependance is levied on gross minus EUR 901.25, and unlike pension and health it continues on very high salaries.
How contributions and tax interact
The pension and health contributions are deductible for income-tax purposes, so they reduce the taxable base. The dependance contribution is not deductible. Payroll deducts the social contributions first, applies the deductions and the bareme to compute income tax, adds the 7% solidarity surcharge, and arrives at net pay. For a typical salary the combined social-plus-tax burden lands in the high-20s to mid-30s percent of gross.
FAQ
How much do Luxembourg employees pay in social contributions?
8.5% pension, 3.05% health (maladie) and 1.4% long-term care (dependance). Pension and health are capped at EUR 13,518.68/month; dependance has no ceiling but only applies above a EUR 901.25 monthly franchise. Verify with the CCSS.
What is the dependance contribution?
The assurance dependance funds long-term care. It is 1.4%, paid by the employee only, charged on income above a EUR 901.25 monthly franchise, with no upper ceiling. Unlike pension and health, it is not tax-deductible. Confirm with the CCSS.
Is there a contribution ceiling?
Yes, for pension and health: EUR 13,518.68 gross per month in 2026. Above that, those two contributions stop. The dependance contribution has no ceiling. Verify the current ceiling with the CCSS.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.