Luxembourg: agreement struck with France to increase the number of teleworking days for cross-border workers

Starting 01 January 2023, workers commuting between France and Luxembourg will be able to telework free from any double taxation onus for a maximum of 34 days per year, instead of the current 29. Some 117,000 French nationals working in Luxembourg will be concerned by the decision. “I would like to thank my French counterpart for this agreement, which has been eagerly awaited by many employees and businesses, and which offers greater flexibility, particularly with regard to teleworking,” said Yuriko Backes, Luxembourg’s Finance Minister. A similar agreement was secured with Belgium at the end of August 2021, which raised the annual teleworking quota from 24 to 34 days and which benefits 50,000 Belgian workers. Discussions with Germany are also underway to increase the number of telework days for German workers from the current 19 per year. The extraordinary telework agreements that were concluded in March 2020 between Luxembourg and its border countries (Germany, Belgium, France) as a way of coping with the Covid-19 pandemic, are set to expire on 31 December 2022, and as such put an end to the administrative tolerance that had meant no switching of an employee’s social security scheme membership was required if the EU legislation maximum activity threshold was exceeded (no more than 25% of an activity to be undertaken in the country of origin) (c.f. articles No.13108 and No.13118).