All there is to know about teleworking in Luxembourg in 2023

A lot of changes affect telework in 2023. While Luxembourg residents are in a relatively comfortable situation, there are several things to know about French border workers.

Since 1 January, the social threshold limiting teleworking to 25% of annual working time has been frozen once again and is on hold until 30 June 2023.

This means that a border worker will be able to work remotely from another country without jeopardising their affiliation to Luxembourg's social security system. This is an important guarantee for their pension contributions and the benefits to which they might be entitled.

However, the tax threshold remains applied. In France, it is officially set at 34 days per year, which means that border workers can annually telework for 34 days and still be taxed in Luxembourg.

Below this threshold, "there is no change for you, no change on your payslip", explains Julien Dauer, director of the Grand Est Association of Cross-Border Workers. Beyond that, tax must be paid in France.

In theory, French cross-border commuters can still do one day of teleworking per week thanks to a new French law. Luxembourgish employers must declare the number of days of teleworking carried out by their employees living in France. The latter are then responsible for making their tax declaration and paying their dues in their home country.

Further negotiations necessary

"Obviously, this makes it possible to better reconcile private and professional life, to be less affected by transport... But it is not as simple as working remotely one morning because there are problems with transport," warns Dauer. "It is important to remember that there might be professional, fiscal, and social consequences."

In addition to these two thresholds, the 25% threshold frozen at the beginning of the year and the tax thresholds, it is in the interest of border workers and residents to negotiate telework with their employer and to sign an amendment framing the practice.

Although employers risk losing talent by refusing this much sought-after benefit, it should be noted that telework is not a right acquired by the employee. In this case, it is the result of a mutual agreement between the two. "Neither party can impose telework. You can't demand it of the employer, just as the employer can't impose it on you", explains Dauer.

If negotiations fail, the employer can legitimately refuse telework. However, a recent survey shows that employers are generally in favour of telework in Luxembourg.

Video report in French