It is not only employees who want more teleworking. Their employers are also asking for it, according to the latest survey by the Luxembourg Employers’ Assocation, UEL.
The survey was conducted between August and September 2022 among 1,073 companies employing 140,450 people, i.e., about 39% of the country's private employees. It was published in January 2023.
41% allow two days of telework per week
The survey shows that 60% of companies allow at least 76% of their employees to telework. 41% even allow it two or more days a week.
The problem is that cross-border workers must limit themselves to 25% of work done from home if they want to remain affiliated to the social security system of the country where they work (which is advantageous, in Luxembourg, for them as well as for their company). There are also tax limits: 34 days for Belgians and French, 19 for Germans. Above these thresholds, they have to pay taxes on their income in their own country, even though this does not always cost more.
These restrictions lead 18% of the companies allowing telework to apply differential treatment according to the country of residence. 6% even refuse it to cross-border commuters.
40% lost a candidate due to lack of telework
At least two days a week, with full tax and social security neutrality, would be ideal: 83% of the companies that allow teleworking ask for it (i.e., 50% of all companies surveyed), both in the financial and non-financial sectors. 40% of companies have already lost a potential candidate because they could not offer more home office. This rate rises to 42% in the financial sector, compared to 39% in other sectors.
92% believe that Luxembourg should take further steps to increase the tolerance thresholds. The UEL has taken a position on this, asking the government to “strengthen its proactive approaches, first of all with Germany, Belgium and France, and then at the European or international level.”
Concretely, the employers’ organisation wants to raise the social security threshold to 41% and tax thresholds to 96 days per year, in addition to the “clarification/confirmation of the absence of a permanent establishment for companies when telework is carried out below this threshold of two days per week.” This is to “allow employers to attract talent to the territory and to continue to develop economic activity for all companies.”
Insurance, the sector that teleworks the most
In detail, 71% of the companies surveyed allow at least 76% of their employees in the financial sector to telework and 55% in the non-financial sector. People in the insurance (96%), investment funds (91%) and IT/telecom (91%) sectors are working from home the most. In contrast, only 6% of companies in the hotel and catering industry stated that at least 76% of their employees work from home, compared to 45% in the craft industry.
The willingness to have access to at least two days a week without limit varies between 69% and 94% from one sector to another, except for the craft sector, at 40%.
This article was originally published on and has been translated and edited for Delano.