Since July 1, 2023, the teleworking framework agreement has introduced favorable conditions for cross-border employees who wish to work from their residence while remaining affiliated with Luxembourg’s social security system. This change comes with important new rules for both employers and non-resident employees.

Teleworking and social security: what the framework agreement changes

The framework agreement allows teleworkers to spend up to 49% of their working time in their country of residence while continuing to benefit from social security in Luxembourg, their country of employment. This applies to employees who telework between 25% and less than 50% of their time.

This flexibility represents a significant step forward for Luxembourg employers, as it enables them to offer more teleworking options to cross-border employees while maintaining their social security coverage in Luxembourg.

DEMDET procedure: how to apply for the framework agreement

The 49% teleworking limit is not automatic. To benefit from this arrangement, employers must complete a declaration process via the SECUline system or by submitting a paper request to the Centre Commun de la Sécurité Sociale (CCSS). This process is referred to as DEMDET.

Therefore, employers are required to take this step to ensure that their employees can take advantage of this benefit.

End of the transitional period: what you need to know

June 30, 2024, marked the end of the transitional period that allowed for 12 months of retroactive declaration. As of July 1, 2024, requests under the framework agreement can only be applied with a retroactive period limited to 3 months.

Employers should be mindful of these declaration deadlines to avoid any loss of rights or advantages related to Luxembourg’s social security scheme.

In summary

The teleworking framework agreement offers cross-border employers and employees greater flexibility for working from home while maintaining their affiliation with Luxembourg’s social security. However, with the end of the transitional period, it is crucial to adhere to the new retroactivity rules to ensure employees continue to benefit from this advantageous scheme. Securex Luxembourg is here to assist you with your teleworking and social security needs.