On Thursday, Luxembourg’s MPs are voting on legislation that will raise family allowances and back-to-school allowances, increases that will take effect on 1 January 2027.
The family allowance will go up by €45 a month, with a further €15 supplement for older children. That translates into the following amounts, effective from 1 January 2027:
| Child's age | Family allowances in 2027 |
| 0-5 years old | €352,35 |
| 6-11 years old | €375,58 |
| Starting from 12 years old | €425,34 |
The back-to-school allowance is also being raised, by €60 for younger children and €90 for teenagers. Following the parliamentary vote, the new rates will apply from 1 January 2027:
| Child's age | Back-to-school allowance in 2027 |
| 6-11 years old | €175 |
| Starting from 12 years old | €325 |
The legislation, brought forward by Family Affairs Minister Max Hahn, also puts in place a mechanism to index the back-to-school allowance, as well as the birth grant and the special supplementary allowance (provided for children with disabilities).
All of these will now be adjusted in line with inflation.
The law also includes a long-awaited amendment to Article 270 of the Social Security Code, resolving a delicate issue for Luxembourg.
The child of a cross-border worker’s spouse or partner is now also entitled to Luxembourg's family allowance.
It is now "presumed" that the cross-border worker contributes to the child’s upkeep, even in the absence of a direct biological or legal relationship.
This applies regardless of whether they share a household. If they do not, the cross-border worker can demonstrate their financial support for the child “by any means”.
In doing so, Luxembourg has adopted a "fairly broad" approach to amending the law, bringing it in line with European case law.
The Grand Duchy had been singled out for discriminating against cross-border workers by halting family allowances for those in blended families.
