Sunday work, pension reform, profit-sharing bonuses, sports leave… Several proposals are currently under discussion in the Luxembourg Chamber of Deputies. New provisions may (soon?) enter into force.  Here is an overview of the developments that could well affect your professional day-to-day life!

Upcoming reform on Sunday work!

A bill submitted on 12 November 2024 to the Chamber of Deputies proposes amending Article L. 231-4 of the Labour Code so as to adapt the rules governing Sunday work to current market realities.

Currently limited to 4 hours, the permitted working time on Sundays could be extended to 8 hours. This duration would be an absolute limit and could not be exceeded. The measure aims to offer greater flexibility to businesses while responding to the needs expressed by certain employees.

The bill also provides for the continued application of the 70% wage supplement for all hours worked on Sundays, in line with the relevant provisions currently in force. This reform reflects a determination to modernise the legal framework, balancing economic adaptation with the protection of the rights of workers, particularly regarding purchasing power.

Adjusting retail opening hours: towards greater flexibility?

In line with commitments made in the 2023–2028 coalition agreement, the Government is considering a reform of retail opening hours. The aim is meet consumer needs better while taking into account the realities of the sector.

The bill under preparation includes a full exemption for shops selling essential goods so that they can stay open round the clock, subject to an agreement concluded within a collective or interprofessional framework.

Following a meeting with both sides of industry, the Government has proposed the following hours:

• Monday to Friday: authorised opening from 5:00 am to 9:00 pm, with a possible exemption until 1:00 am via a collective or interprofessional agreement.
• Saturdays, Sundays, public holidays, and the eves of public holidays: opening from 5:00 am to 7:00 pm, with a similar exemption possible until 1:00 am under the same conditions.

This reform aims to offer retailers more flexibility while ensuring a clear and consensual legal framework.

Changes ahead in reporting profit-sharing bonuses to the Luxembourg Inland Revenue (Administration des contributions directes)?

A bill submitted on 27 May 2025 is intended to adapt the procedures for reporting the list of employees who have received a profit-sharing bonus to the Luxembourg Inland Revenue.

Employers are currently required to report each bonus payment made during the year. In an effort to simplify administrative procedures, the bill proposes an annual report after the end of the tax year.  Accordingly, employers would be required to submit to the Luxembourg Inland Revenue a named list of employees who received a profit-sharing bonus during the period from 1 January to 31 December, before 1 March of the year following the payment year.

Pension reform: initial proposals announced by the Government

In recent weeks, the pension reform has been widely discussed and has sparked strong reactions. In a statement published on 3 September, the Government shared its initial proposals for reforming the pension system. Measures under consideration include:

• The statutory retirement age would remain at 65.
• As of  2026, the overall contribution rate to the pension scheme would increase from 24% to 25.5%. This rise would be shared equally between employees, employers, and the State, with each contributing 8.5% (up from 8% under the current scheme).
• As of 2026, the rules for early retirement at 60 would gradually change. The aim is to bring the actual retirement age closer to the statutory one. More specifically, contributors would need to pay in for an additional eight months by 2030: one extra month per year in 2026 and 2027, followed by two months per year between 2028 and 2030. The conditions for early retirement from age 57 would remain unchanged.
• The Government is considering introducing a tax incentive in an effort to encourage individuals who already qualify for early retirement but choose to continue working until the statutory age of 65.  

No bill has been tabled for review at this time. It has been stated that the pension system will be reassessed in 2030.

Pay transparency: What about transposition into Luxembourgish law?

In May 2023, the European Union marked a major milestone by adopting Directive 2023/970, an ambitious text placing pay transparency at the heart of the fight for gender equality.

The aim of this directive is to ensure fair remuneration for work of equal value by requiring employers to provide greater clarity on pay, starting from the recruitment process. Companies will henceforth be required to communicate, publish, and in some cases justify their salary data, so that employees and job applicants can  access clear and comparable information, reduce pay discrimination, and help close the gender pay gap.

Moreover, the directive places responsibility on Member States to introduce effective, proportionate, and dissuasive sanctions.

No transposition bill has been submitted to the Chamber of Deputies at this time. Luxembourg has until 7 June 2026 at the latest to transpose the directive into national law, failing which it will apply directly as of that date.

Would you like to learn more about the implications of this directive and its transposition? Explore our special newsletter on the subject!

Sports Leave: Extended deadline for reimbursement requests!

Bill no. 8611 proposes adjustments to the sports leave scheme, which allows eligible employees to take leave to participate in international competitions or accompany athletes at official events.

Funded by the State, this leave requires the employer to submit a reimbursement request. Currently, this request must be filed before 1 February of the year following the leave. The bill proposes extending this deadline to 1 July, giving employers additional time to complete the necessary administrative procedures.

These ongoing reforms reflect a clear intention to adapt the legal framework to the changing world of work and the expectations of both businesses and employees. Whether it’s increasing flexibility around Sunday work, streamlining procedures for profit-sharing bonuses, or anticipating the impact of pension reform, these proposals could have tangible consequences for your organisation and your workforce.