Everything you need to know about remote working in 2024

If you work in Luxembourg and feel a little uncertain about current teleworking regulations, then we have got your back with everything there is to know for 2024: tax threshold, social security threshold, negotiations with your boss... Whether you are a resident or a cross-border commuter, you may be working from home in 2024, so do make sure to be up to date about the latest home office rules.

Setting up an agreement with your employer

In Luxembourg, teleworking is based on several principles. The first is to have an agreement with your employer, which applies to both residents and cross-border commuters. Because without a joint agreement, teleworking is not possible. Teleworking is neither an obligation nor a right, which means that while your employer cannot force you to work from home, neither can you demand that you are allowed to do so. You need to negotiate to reach a mutual agreement. Here, the growing popularity of remote work should come in handy as a bargaining chip.

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To ensure that your teleworking is properly managed, we generally recommend that you sign an amendment to your contract setting out the precise conditions: how many days a week will you be allowed to work remotely? What equipment will you be using? And which tasks will you be carrying out?

Practical issues, including the right to disconnect or the use of equipment, should also be addressed. As do certain legal aspects, particularly if you are working with sensitive data. For example: can a bank employee work on the train if they have access to private information? Should they use special software to secure their data if they work from home? All of these matters should be stipulated in black and white.

Tax and social security threshold

Once an agreement has been reached with your employer, there are still two things to observe: the tax threshold and the social security threshold. These are of particular concern to cross-border commuters since Luxembourg residents have an advantage: as long as they work from the Grand Duchy, they are not subject to these rules. However, cross-border commuters are, so they need to be aware of these two thresholds, which apply at the same time.

The first is the tax threshold, which determines where you pay your taxes. This depends on the agreements signed between Luxembourg and its neighbouring countries. For German, Belgian, and French cross-border commuters, the threshold is the same: 34 days a year.

So, as long as you do not work more than 34 days from abroad this year, you will continue to be taxed in Luxembourg. You do not have to declare anything in your country of residence and there is no change on your payslip. It should be noted that this tax threshold is not a ceiling. But, if you exceed these 34 days per year, your income becomes taxable in your country of residence.

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The other threshold you really need to know about is the one for social security. It is based on a European framework agreement, which determines the social security contributions people have to make and which country must award social benefits, including family allowances, study grants, and pensions. Not to mention the extra formalities that employers will have to go through.

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In 2024, you can work remotely for up to 49.9% of your annual working time. For a full-time worker, that is equivalent to around 112 days a year. So, two days of teleworking per week will enable you to meet the social threshold. As long as you don't exceed this, there is no problem: you remain affiliated to Luxembourg social security. But, if you exceed it you will automatically switch to the social security system of your country of residence. And that can have very serious consequences for your pension or the state benefits you receive.

Video report in French