Social Security

Luxembourg social security provisions comply with EU regulations


European Union Requirements

EC Regulation No 883/2004 sets out the rules for the coordination of social security systems between Member States. The Regulation applies to, amongst others, EU nationals and residents.

Key elements

Applicability of one legislation

The Regulation eliminates the possibility of overlapping benefits by defining which national legislation applies to migrant workers. Employees are generally subject to the legislation in the jurisdiction where they work.

Equality of Treatment

All persons have the same social security rights and obligations in a Member State as the citizens of that Member State. Provisions directly or indirectly discriminating against non-nationals are prohibited.

For the purposes of vessel registration, each Flag State must therefore grant the same social security protection and benefits to EU seafarers as it does to national seafarers.

Special Rule for Seafarers (“Art. 11(4) Exception”)

The Regulation deems that a seafarer’s employment activity is pursued in the Flag State.

There is however an exception to this rule for seafarers. Where the employer’s registered office or place of business is based in the same Member State in which the seafarer resides, the seafarer is subject to the social security legislation of the State of residence.


EU Seafarers

EU seafarers employed on Luxembourg-flagged vessels must be enrolled in the Luxembourg public scheme as EU Regulation (EC) No. 883/2004 mandates they receive equal treatment as Luxembourg nationals.

Exception

Where an EU seafarer is hired by an employer based in his state of residence, the social security jurisdiction of the resident state applies.


Non-EU Seafarers

Non-EU seafarers may be covered privately or through the social security system of their resident state.


Luxembourg Public Scheme

The following contribution rates apply for the Luxembourg public scheme:

Employee Employer
Health 3.05% 3.05%
Sickness (Employers’ mutual fund) 1.16%
Pension 8.00% 8.00%
Dependency 1.40%
Accident 0.90%
Health at work 0.11%
Total 12.45% 13.22%

 


Bilateral Treaties

Bilateral treaties also provide for seafarers from the following States to be covered by the Luxembourg social security scheme:

Albania Montenegro
Bosnia and Herzegovina Morocco
Brazil Serbia
Chile Tunisia
Macedonia Turkey
Moldova