2024 Changes in Luxembourg: Taxation, Meal Vouchers, and More

2024-01-01 07:00:00

Published1. January 2024, 08:00

Legislation in Luxembourg: Meal vouchers, taxes… everything that changes in 2024

LUXEMBOURG – Taxpayers will gain on one side and pay a little more on the other, from January 1st.

par

Séverine Goffin

Meal vouchers can also be used on weekends and public holidays.

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Taxes

Taxes will fall with the adaptation of tax scales. For example, for tax class 1 with an annual gross salary of 75,000 euros, this will represent an annual net gain of 1,095 euros.

Meal vouchers

From 10.80 euros, the meal voucher increases to 15 euros. The employee’s share remains at 2.80 euros and the employer will pay the 12.20 euros difference. It will be possible to use up to five meal vouchers per day, including weekends and public holidays.

TVA

In 2023, VAT fell by one point. The measure being temporary, it resumes its old rates, i.e. 17% for the normal rate, 14% for the intermediate and 8% for the reduced. The super reduced rate has always remained at 3%.

Carbon tax

From 30 euros per tonne, the CO2 tax will increase to 35 euros. It will continue to increase by five euros per year until 2026. Each time, this increases fuel prices by a few cents at the gas station.

Salary of civil servants

Under an agreement signed in 2022, civil servants’ salaries will see a linear increase in the index value of 1.95%. Committee members will also see their remuneration increase by 15%.

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