Tax credit for domestic workers in a private household

Tax credit for domestic workers  

Employees with taxable income in Luxembourg may be entitled to a tax credit for domestic workers (crédit d'impôt pour salariés - CIS). This is credited by the employer when withholding tax from the employee's salary, and this can be checked on the payslip.

For workers employed exclusively by one or more private households, who have agreed a net salary, and who are affiliated under the simplified procedure, the Social Security Centre (Centre commun de la sécurité sociale - CCSS) pays the CIS. The employee has no further formalities to complete to receive the CIS.

However, if the employee also works for an employer that is not a private household at the same time, or is self-employed or receiving a pension or a personal annuity, the CIS will not be paid by the CCSS, but credited by the employer or competent organisation.

Further information can be found on the Luxembourg Inland Revenue (Administration des contributions directes) website.

The CIS is paid by the CCSS on the first working day of the month, with a three-month delay. The payment will be made exclusively into the bank account used by the National Health Fund (Caisse nationale de santé - CNS) to pay benefits.

Minimum wage tax credit

Since 1 January 2019, employees with taxable income may be entitled to a minimum wage tax credit (crédit d'impôt salaire social minimum - CISSM).

It is up to the employer to pay the aforesaid tax credit to the employee, and this can be checked on the payslip.

For employees hired under the simplified procedure by a private household, the CCSS pays the CISSM. The employee has no further formalities to complete before receiving the CISSM.

Unlike the CIS, the CISSM is also paid by the CCSS for occupations with private households if the employee works for an employer other than a private household at the same time.

Further information can be found on the Luxembourg Inland Revenue (Administration des contributions directes) website.

The CISSM is paid by the CCSS on the first working day of the month, with a delay of 3 months. The payment will be made exclusively into the bank account used by the National Health Fund (Caisse nationale de santé - CNS) to pay benefits.