Sickness benefit for employees
As an employee in Luxembourg, it is essential to understand how to manage incapacity for work, as well as your rights and obligations.
The Luxembourg social security system offers protection mechanisms to guarantee income continuity in the event of incapacity for work.
In a nutshell
On this page, the CNS provides all the information you need to better understand the work incapacity benefit:
- At what point does the benefit take over from the remuneration paid by the employer?
- What are the special cases?
- How long will the benefit last?
- How is it calculated (income taken into account, floor and ceiling, etc.)?
- Is it possible to contest it?
- Up to what age can it be received?
- What happens in the event of an accident at work?
The CNS answers these questions and guides you through the procedures to follow.
Everything you need to know
- Payment during a period of incapacity
- Duration of the benefit
- Amount of the benefit
By whom and under what conditions is the remuneration paid?
Continued payment of salary by the employer
In the event of incapacity for work, the employer is obliged to continue paying the salary until the end of the month in which the employee reaches the 77th day of incapacity. These days are calculated over a reference period of 18 consecutive months preceding the month for which it is desired to determine who is responsible for the payment of the salary.
Attention! It is important to note that the 77 days include all calendar days, including weekends and public holidays, and not only working days.
The 77-day check, carried out every month, determines who is responsible for the remuneration of the employee on sick leave for the following month.
Compensation by the National Health Fund
On the advice of the CMSS, the CNS directly pays for the sick days in a month if the employee has accumulated at least 77 sick days in the 18 months immediately preceding that month. The employer suspends payment of the salary when it is informed of the change in the payment obligation and the start of payment of sickness benefit by the CNS.
Good to know
- The CNS establishes the total number of incapacities for work based on the monthly declarations made by the employer and the medical certificates sent by the employee. It is therefore important that these declarations are made correctly and without delay in order to determine whether the salary should be paid by the employer or by the CNS.
- The CNS will inform the employee and the employer if there is a change in the payment obligation.
Salary paid by the employer or by the CNS? Here's a case study to help you understand!
In December 2024, the employee is unable to work. Is the employer or the CNS responsible for paying the employee's salary?
To find out, the CNS checks whether the employee has reached the threshold of 77 days of incapacity for work in the previous 18 months, i.e. from June 2023 to November 2024.
- If the threshold is reached, the employer stops paying their employee and the CNS takes over by paying compensation.
- If the threshold is not reached, the employer will have to pay the employee's salary for the month of December 2024.
What are the special cases?
End of the employment contract
If the employee is a temporary worker or has a fixed-term employment contract, or at the end of a period of notice of dismissal, the employer will only pay him/her until the end of the said contract.
Termination of Affiliation
The right to a work incapacity benefit is maintained under the following conditions:
- Disaffiliation occurs after 6 months of continuous affiliation (an interruption of less than 8 days is, however, authorised);
- During the period of incapacity for work, the employee does not receive remuneration for professional activity or replacement income. In this case, he or she produces a sworn statement using a standard form sent by the CNS.
Maternity leave, dispensation from work and adoption leave
If the employee is on maternity leave, if she is benefiting from a dispensation from work in the context of her pregnancy or adoption leave for her adopted child, the employer will suspend the payment of the salary but the employee will receive the remuneration (cash benefit) from the CNS from the first day of absence from work.
How long will the benefit last?
Declaration of aptitude for work
When the Social Security Medical Board (CMSS) deems an employee fit to return to work, the CNS will inform them of this decision in writing. In this case, for certificates of incapacity for work issued during the following twelve weeks, the CNS will not pay a salary if the payment obligation falls on them.
However, a certificate issued for a new health problem, duly justified by the prescribing doctor, may be taken into account by the CNS.
Suspension of the entitlement to sickness benefit
The CNS may suspend the payment of the benefit or salary in the following cases:
- Failure to appear without valid reason when summoned by the CMSS;
- Failure to attend a medical examination for reclassification without a valid reason;
- Stay abroad without prior authorisation from the CNS;
- Detention.
Duration of entitlement to financial compensation
The entitlement to payment for days of sickness by the CNS is limited to a total of 78 weeks for a reference period of 104 weeks.
Please note! All periods of personal incapacity for work due to illness, occupational illness or accident at work that occurred during the reference period are taken into account. Periods of maternity leave or dispensation from work are not counted.
At the start of each period of incapacity for work, a check is made for each calendar day of this incapacity to see if the limit of 78 weeks has been reached. The CNS no longer pays for sick days once the total duration of the periods of incapacity exceeds 78 weeks.
Good to know: when the 78-week threshold is approaching, the CNS sends a theoretical simulation of the date on which the entitlement to sick pay will end if the incapacity to work persists.
Permanent disability
When the CMSS recognises a permanent disability, the right to sick pay expires at the end of the month in which the CMSS medical officer recognises it.
Professional reclassification
If the employee benefits from professional reclassification (internal or external), their right to sick pay ends on the day of notification of the decision by the joint reclassification committee (commission mixte sur le reclassement).
How is the benefit calculated?
The sick pay paid in the event of incapacity for work consists of:
- A basic allowance;
- In some cases, supplements and accessories.
Basic salary
The basic allowance normally corresponds to the highest basic salary during the three months preceding the start of the payment of the sick pay by the CNS.
Good to know: the basic salary includes the elements of the salary that are paid monthly in cash and that are not considered as supplements and accessories.
For example, when there is no month entirely covered by an activity subject to contributions (for example, in the case of a temporary employment contract). In this case, the value agreed in the employment contract is used as a basis.
In addition, in the case of apprentices, for example, the apprenticeship benefit is used as the basis for calculating sickness benefits.
Complements and accessories
This is a monthly payment in cash, but the amount may vary from one month to the next, such as a productivity bonus, for example.
The CNS determines the amount by calculating the average of the sums paid in this respect during the 12 calendar months preceding the month prior to the start of the incapacity for work.
If this reference period is not fully covered by an activity subject to contributions, the average is calculated on the basis of the month(s) that have been fully covered.
What is not taken into account when calculating the benefit
When determining the amount of the sickness benefit, the CNS will not take the following salary components into account:
- overtime, even if it was regularly worked before the period of incapacity for work and was initially planned for the period during which the employee is unable to work;
- Gratuities or occasional benefits;
- remuneration in kind such as company accommodation, company car, meal vouchers, etc.
Requesting a correction of the benefit
The employee may ask the CNS to recalculate his sickness benefit for a period of one month if he notices a difference in income for the month in question caused by the different calculation methods used by his employer and by the CNS.
The employee downloads the PDF request for recalculation of sickness benefit and attaches to his request the detailed statement of the part of his salary paid by his employer for the month in question.
Age limit
Sick pay is no longer paid after the age of 68.
Minimum and maximum benefits
The monthly sickness benefit may not:
- Be lower than the social minimum wage, unless there is a legitimate reason for exemption or reduction. In the case of part-time work, this threshold is established on the basis of the hourly social minimum wage.
- be more than five times the social minimum wage.
In the case of several activities of a different nature, whether salaried or self-employed, the various sickness benefits may be accumulated up to a maximum of five times the social minimum wage. If this threshold is exceeded, the benefits are reduced proportionally.
Proportional reduction in compensation if the maximum threshold is exceeded: A case study to clarify the situation!
If we take into account the Minimum Social Wage (SSM) on 1st January 2023 (= €2,387.4), the threshold (SSM x 5) is €11,937.0.
If we accumulate 3 earnings :
- 1st remuneration: 6.000,0 €
- 2nd remuneration: 5.000,0 €
- 3rd remuneration: 4.000,0 €
> Total remuneration : 15.000,0 €
The threshold is exceeded by €3.063,0 (i.e. €15.000,0 - €11.937,0) which is equivalent to a reduction rate of 20.42% which, once applied, gives the following amounts:
- 1st remuneration:4.774,8 €
- 2nd remuneration: 3.979,0 €
- 3rd remuneration: 3.183,2 €
> Total reduced remuneration: €11.937,0 = maximum threshold.
Other institutions involved
The Social Security Medical Board (CMSS) is a separate administration from the CNS.
One of the CMSS's tasks is to assess the state of health of insured persons in connection with the granting of health insurance benefits by the CNS.
The Medical Board also issues medical opinions for the Caisse Nationale d'Assurance Pensions (CNAP), the Association d'Assurance Accident (AAA), ...
How do I send the sick leave to the CNS?
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