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, an agreement was reached at European level to raise the tolerance threshold from 25% to 49% from 1 July. Each country is then free to decide whether or not to adhere. Luxembourg has now done so. Social security minister Claude Haagen (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, Belgium has also set up a dedicated website 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 Paperjam. It has been translated and edited for Delano.