Luxembourg: Covid-19 related social security regulations for cross-border teleworking extended to 31-Dec-2022

On 24 June, a week before the series of exceptional telework agreements in terms of Luxembourg social security affiliation were due to come to an end on 30 June (c.f. article No. 13108), Luxembourg’s Ministry of Social Security announced that the ‘exceptional provision’ excluding Covid-19 related telework days in social security calculations for cross-border workers is to be extended until 31 December 2022. The members of the Administrative Commission for the Coordination of Social Security Systems in the European Union have decided on a 6 month transitional period of ‘administrative tolerance’ starting 01 July 2022 and ending 31 December 2022. Cross border workers will therefore be able to continue to telework ‘without having to worry about changing their social security affiliation if the 25% threshold (of activity undertaken in the country of origin) provided for in the European legislation is exceeded,’ states the Luxembourg Ministry of Social Security press release. On the other hand, no derogation has yet been announced concerning tax agreements. The press release specifies that this provision only applies to the field of social security, while agreements on taxation are the responsibility of the Ministry of Finance.