accounting

Luxembourg's social parameters

social parameters

The economic and social parameters in force in Luxembourg

 

Index

 

  • Current index rate (1 January 2020): 834.76

 

The index in effect until 1 January 2020 was 814.40 (index in effect since 1 August 2018). The index in effect until 31 July 2018 was 794.54 (index in effect since 1 January 2017). The index in effect until 31 December 2016 was 775.17 (index in effect since 1 October 2013). The index in effect until 30 September 2012 was 737.83 (index in effect since 1 October 2011).

 

Minimum wage

 

(see our article The minimum wage in Luxembourg)

 

  • Skilled minimum monthly social (SMIG): 2,570.39 euros
  • Unskilled minimum monthly wage (SMIG): 2,141.99 euros

The monthly minimum wage was increased on 1 January 2019. Until 1 August 2018 it stood at 2,458.25 euros per month for the qualified minimum wage and 2,048.54 euros per month for the unskilled minimum wage.

 

Legal interest rate

 

Legal interest rate for late payment: between professionals            

 
 1st semester2nd semester
20198%8%
20188%8%

 

Legal interest rate for late payment: between a professional and a consumer
   

 
 

Legal rate

20202%
20192%
20182.25%
20172.25%
2016

3%

2015

3%

2014

3.25%

20133.50%

 

Kilometre allowance

 

  • Kilometre allowance for the use of a personal vehicle for business travel: €0.30 per kilometre.

 

Public holidays in Luxembourg

 
1 JanuaryNew Year’s day
Variable dayEaster
1 MayLabour Day
Variable dayAscension
Variable dayPentecost
9 MayEurope Day
23 JuneLuxembourg National Day
15 AugustAssumption
1 NovemberAll Saints' Day
25 DecemberChristmas
26 DecemberBoxing Day

 

 VAT

 

  • Turnover threshold which makes VAT registration compulsory: €30,000
  • Threshold for intra-Community acquisitions at which level VAT registration is compulsory: €10,000
  • Threshold for "distance selling in Luxembourg" at which level VAT registration is compulsory: €1000,000

 

Accounting

 

  • Threshold at which traders who are natural persons or liberal professions are obliged to keep double-entry accounts: €100,000