Payroll Calculation I

This seminar gives participants a practical overview of calculation of salaries. Participants will deepen their knowledge through exercises.

Introduction

• Compulsory deductions on salaries: taxes and social security
• Other deductions
• System of automatic indexation of salaries to the cost of living
• Social minimum wage

Social Security

• Social minimum wage
• Social security threshold
• Compulsory contributions by employer and staff to the different institutions of social security
  • Health Insurance (Caisse Nationale de Santé)
  • Employer’s Insurance (Mutualité des Employeurs)
  • Pension Fund (Caisse Nationale d’Assurance Pension)
  • Accident Insurance (Assurance-Accidents)
  • Family Allowances (Caisse Nationale des Prestations Familiales)
  • Long-Term Care Insurance (Assurance-Dépendance)
  • Unemployment Benefits (Fonds National de l’Emploi)
• Social security and employment for frontier workers outside Luxembourg
  • General EU rules
  • Exceptions during the COVID period (Reminder)
  • Preliminary agreement for remote work of cross-border workers
  • Remote work combined with business travel

Taxes

• General aspects
• Double taxation agreement (Belgium, France, Germany)
• Tax calculations
  • Tax brackets 2025
  • Tax rates 2025
  • Payroll tax
  • Taxation of resident married couples
  • Taxation of non-resident married couples
• Tax cuts 2025
• Tax card (Fiche de retenue d’impôt)
  • Residents/Non-Residents
  • Mentions on tax card
    • Joint Allowance / Extra-professional allowance (AC/AE)
    • Travel expenses (FD)
    • Special expenses (DS)
    • Extraordinary expenses (CE)
    • Flat rates (FFDS, FFO)
    • Single-parent tax credit (CIM)
  • Calculation of the tax credit for employees (CIS)
  • Calculation of the social minimum wage tax credit (CISSM)
  • Calculation of CO2 tax credit (CI- CO2)
  • Calculating the single-parent tax credit (CIM)
  • Calculation of overtime tax credit (CIHS) for cross-border workers
• Employer obligations

Tax regime for highly qualified employees (impatriates)

• Conditions
• Recurring & non-recurring costs
• Possible advantages & disadvantages for the employer

Split salaries

• Luxembourg/Luxembourg (multiple employers)
• Luxembourg/foreign

Practical examples and exercises

Each participant will receive a certificate of attendance.

Each participant receives a complete documentation.

• Number of participants is limited to 6.
• Interactive and practical seminar.

This seminar is part of the cycle "Salaries as well as of the "HR Expert Kit".