How is the dependency insurance base calculated for part-time employees?

For employees working less than 150 hours per month, the dependency insurance base is calculated by prorating the standard monthly allowance (642,73 €) according to the actual hours worked, using 173 hours as the reference base.

Calculation Method

Calculate the prorated allowance:

Prorated allowance = (Hours worked × 642,73) ÷ 173

Calculate the taxable base:

Taxable base = Gross salary - Prorated allowance

Example

An employee works 60 hours per month with a gross salary of 1.000,00 €

Prorated allowance calculation:

(60 × 642,73) ÷ 173 = 222,91 €

Taxable base calculation:

1.000,00 € - 222,91 € = 777,09 €

Note: The standard monthly allowance (642,73 €) is valid as of January 1st, 2024.

Sources

- CCSS (Centre Commun de la Sécurité Sociale)
- ACD (Luxembourg Tax Administration)

Updated on: 12/11/2024