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All you need to know about teleworkingteletravail


Since the outbreak of the health crisis in March 2020, telework has become a major issue, enabling companies to continue their activity in compliance with the health and safety regulations in force. As an employer, you now wish to perpetuate telework.

This particular form of organization of work activities has many advantages.

It makes it possible to save, to a certain extent, on fixed costs, such as the rental of parking spaces and workspace (reduction of the number of square metres needed). For employees who are interested in striking a better work-life balance, it comes across as a real remedy to the traffic jams they are confronted with on a daily basis and therefore a real time saver.

The implementation of telework is likely to have important implications in terms of social security and taxation, however, which the employer will have to analyse (especially for his non-resident employees).



Impact of social security rules

When an employee works 25% of his working time or receives 25% of his remuneration in his country of residence, all the remuneration received in other countries is subject to a single social security system, i.e. that of his country of residence.

Teleworking days are consequently added to this 25% counter, thereby limiting the possibilities for frontier employees to telework if they want to remain affiliated to the Luxembourg social security system. The consequences of a change of social security are actually important for both the employee and the employer.


limite 25%  Obligations if the 25% limit is exceeded


The Luxembourgish company must first be registered as a "foreign company" with the foreign social security organization. It will then have to pay the employer's contributions of this foreign country, which are higher than in Luxembourg. For his part, the employee will be covered only by the social security of his country of residence (and no longer by that of Luxembourg).


Impact of international tax rules

The various double tax treaties between Luxembourg and its neighbouring countries (Germany, Belgium and France) currently provide for a tolerance threshold of 19, 34 and 29 days per year respectively.




Days worked outside Luxembourg

34 days/a year

29 days/a year

19 days/a year


Non-resident employees working for a Luxembourgish employer can therefore work outside Luxembourg on occasion without triggering taxation in their country of residence. On the other hand, if the above-mentioned thresholds were to be exceeded, all days teleworked in the country of residence would be taxable in that country (and no longer in Luxembourg).


obligations payroll  This entails a certain number of payroll-related obligations for the employer

The employer must indicate the number of days worked abroad on the remuneration certificate.

If the employer knows that the tolerance threshold is exceeded (taking into account teleworking days and days of activity in any country other than Luxembourg), he must exempt the related salaries from Luxembourg withholding tax.

On income related to working days performed in the country of residence, the employer must, if applicable, calculate, declare and pay the foreign tax (according to the tax provisions of the country of residence) to the competent authorities of that country on behalf of the employee concerned.


Impact of the new collective agreement

Beyond these social security and tax implications, the company will also have to ensure compliance with the new legal framework given by the collective labour agreement of 20 October 2020 on regular telework. The ensuing constraints are quite numerous: need for a contract of employment or an amendment, provision of professional equipment, respect of privacy, involvement of the staff delegation, etc.


Securex at the ready to assist you

Securex is on hand to support you with the implementation of telework. Our HR consultants will inform you of the issues at stake and make you aware of the HR challenges that this particular mode of work organization represents.
Our legal team will answer the legal questions raised by the new telework agreement, and assist you in drafting a customized policy.


Then, in the month to month implementation, our payroll consultants will assist you with the follow-up and determination of the tolerance threshold, as well as in the registration of the Luxembourg company with the foreign authorities. They will ensure that the withholding tax is calculated correctly and coordinate, if necessary, the payroll management with the payroll providers of the border countries (tax exemption/withholding tax according to the rules of the country of residence).

With our services, our expertise and our international partnerships, you can rest assured of complying with your tax obligations and a correct calculation of the salaries while being able to anticipate the tax and social consequences relating to the teleworking of your employees.

For more information, please contact Virgnie Echelin: @email