On 5 June 2023, Luxembourg signed the European framework agreement providing for the social security threshold for teleworking to be raised from 25% to "less than 50%".

As a result, from 1 July 2023, cross-border workers will be able to telework for almost half of their working time, without affecting their Luxembourg social security registration.

However, to do this, the employee's country of residence must also have signed this framework agreement.

For the moment, among Luxembourg’s border countries, only Germany and Belgium have already ratified the agreement. France, for its part, has yet to make a decision on the matter.

It is important to emphasise that these agreements only cover the social aspects, and that the tax tolerance thresholds set between countries in bilateral agreements remain applicable.

The European text also refers only to teleworking and explicitly excludes secondment and other professional activities carried out in the country of residence, such as customer meetings, work on a construction site, etc. Here, the 25% threshold remains applicable.

You will need to be very vigilant if either of these two situations arises. You would have to juggle the two social security thresholds and monitor them very closely.

Are these changes, expected by many employees and employers, not the precursors of other (r)evolutions? The question remains open, and everyone can ask themselves what path they wish to take in the near or more distant future.

Need more information?
Please don't hesitate to contact us: In Extenso Belux