Are you entitled to family benefits in Luxembourg?
Insights •Expat Corner• 10.04.2018 • Presented by PRESENTED BY SIMÔNE VAN SCHOUWENBURG – BUSINESS DEVELOPMENT ING EXPAT SERVICES
(Photo: ING Luxembourg)
The answer to this question is not simple. They are several types of family benefits and they are paid differently according to your family circumstances. Let’s have a look at them.
The maternity allowance is not automatic in Luxembourg. If you are a non-resident, you are eligible for this allowance on the condition that you are registered with the Luxembourg health insurance fund and that you are not already entitled to a similar benefit in your country of residence. In other words, you cannot benefit from the birth allowance on behalf of your wife if she doesn’t work in Luxembourg. In addition, even if the amount of the birth allowance in your country of residence is lower than in Luxembourg, no differential supplement will be paid.
The maternity allowance is paid in 3 times. Before the birth, the prenatal allowance is paid to the mother of the child when she is resident in Luxembourg or affiliated to the Social Security at the time of the last of the 5 medical examinations or examination dental requirement. At birth, the birth allowance is paid to the mother, provided that the child is born viable (22 weeks of gestation minimum), that the mother resides in Luxembourg or is affiliated to the Social Security at the time of the child’s birth and that she has undergone a postnatal gynaecological examination to determine whether or not her state of health was affected by the pregnancy. After the birth, the postnatal allowance is paid if the child has been continuously brought up in Luxembourg since birth or if one of the two parents has been registered with the Luxembourg health insurance fund since the birth of the child until his or her 2 years. Unlike the two other allowances, the postnatal allowance can be applied for by the child’s father or mother. In addition, the child must have undergone 6 medical examinations, including 2 perinatal check-ups.
The allowance for the future of the children (or family allowance) is a monthly financial benefit designed to help your household to bring up your child by compensating financial expenses linked to the child’s care and education. The allowance is paid until your child is 18 years old under the following conditions: your child has its legal residence in Luxembourg and resides there permanently and effectively or one of you works and is affiliated to the Luxembourg Social Security and your child resides in a country of the European Union. In this case, the amount of the allowance may vary depending on allowances already awarded in your country of residence. The allowance is extended to the age of 25 for children who are in secondary, secondary technical or similar education for at least 24 hours, for pupils who attend differentiated teaching institutes, departments or centres or an equivalent establishment abroad and for apprentices whose pay is below the social minimum wage.
Paid each year in August, the back-to-school allowance is intended to help you with extra expenses incurred by the start of the school year. To benefit from this allowance, your child must be schooled and aged 6 or more. The allowance stops being paid in the calendar year during which your child ends secondary or technical secondary education or when he or she is aged 25.
As a complement to the welfare detailed above, you can also benefit from the Chèque-Service-Accueil. This state and municipal grant is open to all parents with children under 12 or still in elementary school and residents of Luxembourg. It enables you to a certain number of free hours of day-care per week and reduced rates for subsequent hours according to your salary. Some institutions providing musical activities, art clubs or sport associations for children up to 12 years are also covered by the system. In order to benefit, you must request your child’s personalised membership card from your local commune. The card is valid for 12 months and must be renewed each year. To benefit from the Chèque-Service-Accueil, European workers nationals, who are working in the Grand-Duchy of Luxembourg and are non-residents, must apply to the Children’s Future Fund (Caisse pour l’avenir des enfants – www.cae.public.lu). The CAE is a public institution under the oversight of the Ministry of Family Affairs, Integration and the Greater Region and is responsible for managing family, maternity and back-to-school allowances.
Last but not least, you are also entitled to certain tax benefits for your child, in particular a tax reduction, either in the form of a tax bonus (boni pour enfant) calculated on an annual basis or a tax relief, and tax deductions.
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