Luxembourg: Remote working — a more flexible social security regime

In brief

The member states of the European Union (EU) have developed a new framework agreement in the field of social security to address the reality of regular cross-border remote working. The framework agreement on the application of Article 16 (1) of Regulation (EC) No. 883/2004 in cases of habitual cross-border remote working aims to promote the free movement of people within the EU while preserving their right to social security.


This new agreement allows cross-border workers to carry out their duties in their country of residence, including remote working, while remaining subject to the social security legislation of the member state where their employer is located, under certain conditions.

For the new regime to apply, both the worker's country of residence and the country of the employer must have signed the framework agreement, and the working time in the country of residence must be less than 50% of the total working time.

On 5 June 2023,  Luxembourg's Minister of Social Security signed the new framework agreement.

This framework agreement will come into effect on 1 July 2023, after the transitional period related to the pandemic, and will initially be valid for five years.

Germany and the Netherlands have already signed the framework agreement, while Belgium is expected to sign it soon. France has not yet indicated whether it will sign it.

However, taxation matters remain governed by separate specific bilateral agreements. According to the bilateral agreements currently in force, to remain subject to the Luxembourg withholding tax on income, a worker residing in France, Belgium or Germany may not work remotely from their country of residence for more than 34 days (for France and Belgium) or 19 days (for Germany) a year.

For further information on what these developments mean for you or your organization, please get in touch with your usual Baker McKenzie contact.

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