Luxembourg has taken a step towards teleworking for cross-border commuters by signing the European agreement. Now its neighbours need to ratify it. Photo: Shutterstock

Luxembourg has taken a step towards teleworking for cross-border commuters by signing the European agreement. Now its neighbours need to ratify it. Photo: Shutterstock

Luxembourg has signed the European agreement to raise the social security threshold for teleworking from 25% to 49%. It will apply to cross-border commuters whose country of residence has also ratified the agreement. For the time being, this means only Germany. Belgium has undertaken to do so by 30 June.

Cross-border commuters will soon be able to telework half their time, without any impact on their Luxembourg social security contributions. At least, for those living in Belgium or Germany and working in the grand duchy.

Earlier in March, . Each country is then free to decide whether or not to adhere. Luxembourg has now done so. Social security minister (LSAP) signed the agreement on Monday 5 June.

A cross-border worker will therefore be able to telework while remaining affiliated to the Luxembourg social security system, as long as the time worked in his or her country of residence remains “less than 50%.” This is on the condition that their country of residence has also signed the framework agreement.

This is already the case in Germany. Belgium has undertaken to do so by 30 June. France, on the other hand, has “not yet taken a decision,” according to the ministry of social security.

As the depository state for signatures on this agreement, with a list of signatory member states.

The agreement was signed for an initial period of five years. This does not, however, cover the tax aspects. As a reminder, from 34 days of teleworking for Belgians and French people and 19 days for Germans, cross-border commuters must pay tax on their income in their country of residence. Delano has reached out to the ministry of finance for further information regarding the tax aspects.

This story was first published in French on . It has been translated and edited for Delano.