Social security: pension increases

Retirement pension payments will increase by 1.6% from 1 January, in accordance with article 225bis of the Social Security Code. The aim of this increase is to keep pace with the rise in contributory salaries.

Education and young people: restrictions on screens

New rules will come into force to address health concerns linked to over-consumption of digital technology:

In nurseries: a total ban on screens from 1 January 2025.

Primary education: from April, a general ban on connected devices, except for supervised educational use.

Secondary education: from June, compulsory physical distancing from connected devices during lessons. A charter regulating their use will be imposed on schools.

Families: support for energy costs

With the gradual expiry of the energy price cap, a number of measures are being introduced:

Energy allowance: amount trebled for vulnerable households, with an extension of the eligible income thresholds. The maximum gross monthly income threshold is already 25% above that for the cost-of-living allowance. In order to further increase the number of beneficiary households, a reduced energy premium of half the amount of the energy premium is introduced for households with a monthly income between 25% and 30% above the threshold for the cost-of-living allowance.

Increase in social benefits: living costs allowance increased by 10%. Social inclusion income (Revis) and support for the severely handicapped (RPGH) increased by 2.6%.

State contribution: continued funding for increases in energy costs in homes for the elderly.

Taxation: lower taxes for households

The 2025 tax package introduces a number of tax cuts:

Adjustment of the income tax scale, reducing the tax burden for everyone, especially low-income earners.

Tax exemption: unskilled minimum social wage. Income for single-parent families up to €52,400 gross per year.

New incentives for young employees and specialised workers.

Inclusion: greater accessibility

The Act of 8 March 2023 on the accessibility of products and services comes into force on 28 June 2025. The aim of this reform is to facilitate access to essential tools such as cash dispensers, e-commerce and e-banking.

A new body, the Office de la surveillance de l'accessibilité des produits et services (OSAPS), will support businesses and collect reports of non-compliance.

Mobility: the tram at Findel

From March, the tramway line linking Stade Luxembourg to Findel airport will be fully operational with the opening of the "Héienhaff P+R" and "Findel Luxembourg-Airport" stations.

Businesses: support for innovation

From 1 January 2025, companies wishing to benefit from a tax rebate for digital or ecological transition projects will be able to submit their application on the MyGuichet platform.

The rate of corporation tax will be reduced by one percentage point and actively managed ETFs will be exempt from subscription tax from 2025.

Adaptation of the rule limiting additional borrowing costs and the legal regime for family asset management companies as an anti-abuse measure.

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