If you have decided to move to Luxembourg, make sure you will benefit from the comprehensive social security system. It provides protection in the case of sickness/maternity (which includes dependency), accidents at work, old age/invalidity  and unemployment, as well as family benefits.

All employees are automatically enrolled in the Joint Social Security Centre. The self-employed must contact the centre to make their own arrangements. In most cases, the benefits will extend to immediate family members in the household.

Health insurance
The Caisse National de Santé (www.cns.lu) is the national health insurance fund and provides payment in cash or kind in the case of sickness or maternity. The employer registers the employee by filing an affiliation declaration. The social security centre places the employee under the appropriate sickness and maternity insurance fund. The employee contribution is 5.9 percent. The employer and the employee contribute evenly to the payment.

To be able to benefit from sickness allowance, it is not necessary to have been covered for a certain period of time. However, to be able to claim sickness or maternity benefits, you must be associated with the fund for at least six months prior to the sickness or birth of the child.

The Luxembourg social security system includes dependency insurance. It reimburses fees paid to aid a dependent person living at home or in a nursing home. The person in question must fall under the definition of a dependent person, i.e., due to a physical or mental illness or deficiency, they are not able perform basic acts such as bodily hygiene, nutrition and mobility.

Family allowances
The Caisse Nationale des Prestations Familiales is the family allowance office. It covers child benefits, childbirth benefits, education benefits, parental leave and a benefit for the start of school. The child benefit is paid from the birth of the first child, and may vary according to the number of children and their ages. For the first child, the amount is EUR 185.60, and for the second it is EUR 440.72. It may be continued up to the age of 27, as long as the child is a student or has a disability.

The childbirth benefit amounts to EUR 580.03 but is split over prenatal benefit (paid as soon as the mother has had five medical examinations and dental check), the childbirth benefit proper (due on the day the child is born) and postnatal benefit (paid as soon the child has undergone six health checks before the age of two).

The education benefit is only awarded to parents who have reduced their working hours to no more than 20 per week or those without a job that care primarily for their children. They must also be receiving family allowance. Depending on circumstances, they can receive the full amount of EUR 485.01 or the reduced amount of EUR 242.50.

Every parent has the right to take leave. For each child the length of leave is six months full-time or 12 months part-time, as long as this is taken before the child is five years old.

The family receives a benefit every year before school starts from the child’s sixth birthday. Again, the amount depends on the number of children and their ages but will be between EUR 113.15 and EUR 323.34 per child.

A new benefit called the Boni pour Enfants has been available since 2008. This ensures that the Caisse Nationale des Prestations Familiales pays an allowance of EUR 922.50 per child. Since March 2009, each child entitles the parents to services which they can exchange for childcare in a crèche.

Unemployment benefits
The public employment administration body covers the unemployment insurance. Their tasks are to find work for the unemployed and pay their benefits. Employees and self-employed made redundant and young school-leavers may claim unemployment benefits. For those who have lost their job to be able to claim the benefit, they must have been associated with the scheme for six months out of the previous year.

Younger people who have completed their education may apply for full unemployment benefit under the conditions that; they were living in Luxembourg when they became unemployed, they are over a particular age, they were registered within 12 months of completing education and are registered as unemployed for 26 weeks. They can be paid 70 percent of the minimum wage and 40 percent if they are younger than 18.

To register, you must go to the appropriate agency, determined by your area of residence. There are four agencies, in Diekirch, Esch-sur-Alzette, Luxembourg and Wiltz. The reception will give you a guide and a questionnaire to fill in. Following this, a meeting will be scheduled.

Agreements exist between Luxembourg and all EU countries, and several other countries including the United States, that allow expats to remain under their home country’s social security system, but only for a certain amount of time. If you qualify for non-resident tax status, you may continue making social security contributions in your country of origin for up to five years.

Terms (French - German)
Insurance: assurance - versicherung
Social security: sécurité sociale - soziale Sicherheit
Unemployment: le chômage - arbeitslosigkeit
Health insurance: assurance maladie - krankenversicherung

Expatica