Employment of personnel in a private household

This page was last modified on 12-01-2016

The administrative procedure for hiring a domestic worker has been simplified.

Administrative steps related to social security and tax have been made easier for the individual who intends to hire a person for the following tasks:

  • domestic work;
  • child care;
  • provision of non medical care services to a dependent person.

Forms / Online services

Carry out your procedure:

Who is concerned

Employer

In order to benefit from the simplified procedure, the employer hiring a domestic worker must be a private individual who employs the worker to provide the services on a personal and private basis.

Domestic workers

The following workers are concerned by the simplified procedure:

  • workers who carry out domestic tasks in the private residence of a person;
  • workers who provide child care services to their employer's disabled children or children of less than 14 years of age within the framework of the employer's private life;
  • workers who provide the necessary assistance and care (non medical) to a person in a state of dependence (i.e. a person requiring significant help and regular assistance from another person for the basic essentials in life such as bathing, eating, moving, etc.).

The services can be provided either directly to the employer or to a person living in the employer's household.

How to proceed

Recruitment

Employers are required to declare a vacant position to the National Employment Agency (Agence pour le développement de l'emploi - ADEM).

Employers who wish to hire a third-country national are also subject to specific rules in this matter.

Employment contract

It is recommended to draw up an employment contract in writing in order to set the working days and times as well as the remuneration of the worker.

The provisions laid down by the labour law will apply in the absence of an employment contract. An employment contract which is concluded orally is automatically deemed to be a permanent employment contract without trial period.

However, in the event a family member or close relation (neighbour or friend) is providing care and help to a legally dependent person, the employer is exempted from having to draft an employment contract and the worker is referred to as an "aidant informel" (informal helper).
The services provided on an occasional basis, with no obligation to do so and with total freedom, can not be qualified as a working relationship, even where a payment for the services is involved.

The employment contract of a person working in a private household can be in a simplified form. However, it must indicate:

  • the identity of the parties involved;
  • the start date of the employment contract;
  • the place of work;
  • the nature of the work;
  • the number of daily or weekly working hours of the worker;
  • the normal working schedule;
  • the remuneration of the worker (net or gross amount);
  • the amount of paid leave or, failing this, the method used to determine the amount of leave;
  • the notice periods for the employer and for the worker in the event the employment contract is terminated or, failing this, the conditions for determining the notice periods;
  • the duration of the trial period if any.

In addition to this essential information, the parties involved may include additional clauses to the contract.

A fixed-term employment contract can only be concluded for a precise and temporary task, e.g. to replace another worker on sick leave.

Remuneration

Depending on their age, diplomas and experience, workers employed in private households must be paid the social minimum wage for skilled or unskilled workers.

Age and/or qualification of the worker

Hourly gross salary as from 1 January 2017

Monthly gross salary as from 1 January 2017

15 to 17 years

8.6644

1,498.94

17 to 18 years

9.2420

1,598.87

18 years and over, unskilled

11.5525

1,998.59

18 years and over, skilled

13.8630

2,398.30

* A skilled worker is defined as a person who:
  • has a vocational skills certificate (certificat d'aptitude technique et professionnelle - CATP) or a vocational aptitude diploma (diplome d'aptitude professionnelle - DAP) or an equivalent foreign diploma;
  • has a manual skills certificate (certificat de capacité manuelle - CCM) or a certificate of vocational ability (certificat de capacité professionnelle - CCP) and proof of at least two years of experience in the profession concerned;
  • has a vocational initiation certificate from a technical secondary school (certificat d'initiation technique et professionnelle - CITP) and proof of at least 5 years of practical experience in the profession concerned;
  • can provide proof of at least 10 years of practical professional experience in the profession concerned;
  • can provide proof of at least 6 years of practical experience in a profession requiring a certain technical capacity and for which there does not exist an official certificate which could be issued after specific vocational training.

The worker must be paid every month and at the latest on the last day of the month. The employer is exempted from issuing salary slips to the worker employed in the private household. At the beginning of the year, the Joint Social Security Centre (Centre Commun de la Sécurité Sociale - CCSS) will establish a salary statement and send it to the employer and to the worker.

Registration with the CCSS

Administrative formalities to be completed by the employer

When an employer hires a worker, he must complete a declaration of employment for private households (déclaration d'occupation dans un ménage privé) and indicate:

  • their own national identification number (matricule - 13-digit social security number);
  • the national identification number of the future employee (in the absence of the number, the worker's date of birth and a copy of his identity card must be attached);
  • the net salary paid.

The declaration must be sent to the department of affiliation (Département affiliation) at the CCSS by mail, fax or email.

Following the declaration, the CCSS will calculate the gross salary and determine the amount of social security contributions which must be paid including a 10 % lump sum tax.

The declaration of employment in a private household is valid as:

  • operating declaration for employers (the declaration allows private households that are first time declarants to obtain a social security number as an employer);
  • declaration of start of employment for the worker employed;
  • declaration of salaries.

Natural persons employing a worker for their private household are automatically exempted from registration with the employers' mutual insurance scheme (Mutualité des employeurs).

Administrative formalities carried out by the CCSS

Based on the data in the declaration, the CCSS will register the persons employed in the household and complete the rest of the procedure such as:

  • calculation of the gross salary: in order to calculate the gross salary, the CCSS will apply the usual rates for health, pension and long-term care insurance as well as a 10 % lump sum tax;
  • calculation of the social contributions to be paid by the employer and their monthly collection;
  • the calculation of withholding tax and payment of tax to the Luxembourg Inland Revenue;
  • the monthly declaration of working hours for the person in employment (the employer is exempted from having to provide salary slips to his worker).

Statement of working hours

At the end of each half-year period, the CCSS sends a statement indicating the average number of hours worked per week and the declared net remuneration to both the employer and the employee.

The gross monthly salary and monthly contributions are indicated on the back of the document.

The employer and the employee have to check the document and report any changes required. The number of working hours is multiplied by the ratio 4.33 (i.e. 52 weeks divided by 12 months) and by the hourly salary in order to calculate the monthly salary.

Each change, namely concerning the percentage of occupation of the employee must also be communicated to the CCSS by standard mail or email.

The employer and/or worker can report, in writing, any difference between the declaration and the actual salary paid. The objection must be raised at the latest during the period following the one where the difference occurred. The CCSS will then make the necessary changes.

At the end of the year, the salary statement will be issued by the CCSS to the employer and the employee for declaration purposes to the Luxembourg Inland Revenue.

Tax

Employer

The employer must pay all the social contributions (employer's and employee's share) and the lump sum tax to the CCSS. The tax represents 10 % of the net salary.

In order to offset these costs, the employer will be granted a fixed tax allowance of a maximum of EUR 3.600 per year to be deducted on his tax return.

To this end, the CCSS issues a salary statement that the employer must attach to his tax return.

Worker

The worker receives a net salary as the social contributions and tax are already deducted.

He does not need to file a tax return. If the worker has a tax card, he must give it to his employer.
The employer must send the tax card together with the indication "personnel de ménage" (household staff) to the following tax office: Bureau d'imposition RTS, B.P. 251, L-4003 Esch-sur-Alzette.

Absence of the worker

Illness

In the event of illness, the worker must immediately inform:

  • his employer: by telephone, email, third person, etc.;
  • the CNS: by telephone, email or post.

In the event of sick leave of more than 2 days, the worker must justify his absence by providing a medical certificate. It must be provided to the CNS and the employer at the latest on the third day of absence.

The employer must continue to pay the worker during the month concerned and during the following 3 months (except in the event of maternity leave).

After the CNS has received the medical certificate, it will send a special form to the employer who must indicate the hours of sick leave. On the basis of the completed form, the CNS will reimburse the costs to the employer.

Employers must allow their employees to attend medical checks during working hours. The employer can request a medical certificate as proof of justified absence. The time spent for the medical check does not have to be paid by the employer, except where the worker is pregnant.

Leave

The worker is entitled to 25 days of leave (= 200 hours for a 40 hour working week) but this number may vary in proportion to the number of working hours.

Example:
  • a person working 2 hours per week is entitled to 10 hours of leave per year;
  • a person working 10 hours per week is entitled to 6.25 days of leave per year.

The legal provisions concerning work on public holidays and sunday work also apply to household staff.

Absence of the employer

If the worker is prevented from carrying out his work due to the employer's absence, the salary is due.

End of the working relationship

Formalities between the employer and his employee

Termination of the employment contract during the trial period

Each party can terminate the employment contract during the trial period, provided they comply with the notice period that depends on the contractually agreed trial period.

In the event of serious misconduct by the employee or the employer, the contract may be terminated with immediate effect.

Dismissal of the worker

Employers who intend to dismiss their employee for serious and real grounds must comply with the provisions on dismissal with notice.

Employers who intend to dismiss their employee for serious misconduct must comply with the provisions on dismissal with immediate effect for serious misconduct.

Resignation of the worker

Workers who intend to resign from their post must comply with the provisions on resignation with notice or, in the event of serious misconduct by the employer, the provisions on resignation for serious misconduct.

Employment certificate

At the worker's request, the employer must draw up an employment certificate describing the worker's position and period of employment.

The employer may decide to join a letter of recommendation.

Administrative formalities with the CCSS

As soon as the working relationship has ended, the employer must send a declaration of end of employment to the CCSS.

Who to contact

125, route d'Esch
L-2975 - Luxembourg
Luxembourg
Phone: (+352) 40141-1
Fax: (+352) 40 44 81

Opening hours
08.00 - 16.00