All remote working days performed by a cross-border worker until 30 June 2023 will be exempt from the European 25% regulation.

On Tuesday, the Ministry of Social Security announced that the social threshold for remote working, which had already been put on hold until the end of 2022, has now been suspended until 30 June 2023.

This threshold normally limits remote work from abroad to 25% of total annual working time. Crossing this threshold triggers a change in social security affiliation.

Cross-border workers in Luxembourg will therefore be able to continue working remotely from abroad without restriction while remaining affiliated to the Luxembourgish system. This secures their contributions and the benefits they receive.

However, the Ministry specified that this decision has no effect on the tax thresholds. On 1 January, French and Belgian employees in Luxembourg will thus be able to benefit from 34 days of remote work without being taxed in their country of residence. In comparison, this threshold for cross-border workers living in Germany is set at 19 days.

"The aim of this extension is to offer the persons concerned a stable framework for cross-border remote work while allowing the administrative commission to continue working on a sustainable European solution," the Ministry of Social Security explained. In fact, a "cross-border worker status" might be created in order to facilitate remote work for cross-border workers.