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 according to the actual hours worked, using 173 hours as the reference base.

As a result, the full allowance for dependency insurance amounts to 2.703,74 € × ¼ = 675,93 € per month as of May 1st, 2025 (prorated according to the number of declared hours).

Calculation Method

Calculate the prorated allowance:

Prorated allowance = (Hours worked × 675,93) ÷ 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 × 675,93) ÷ 173 = 234,43 €

Taxable base calculation:

1.000,00 € - 234,43 € = 765,57 €

Note: The standard monthly allowance was 642,73 € from January 1st, 2024, updated to 659,45 € as of January 1st, 2025, and further updated to 675,93 € as of May 1st, 2025, following indexation adjustments.

Sources

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

Updated on: 16/06/2025