Parental leave compensation increased

Parental leave compensation increased
Parental leave compensation increased

In Luxembourg, the ceiling of this “replacement income” is linked to the level of the minimum social wage. With the increase in the SSM on January 1, 2025, the Fund for the Future of Children will therefore increase its payments.

For nearly 14,000 fathers and mothers -residents or cross-border workers-, the next compensation paid at the end of January for parental leave will see its amount increase. And this will not be an error of the future treasury ! This new value is in fact due to the revaluation of +2.6% of the minimum social wage (SSM) in force since January 1, 2025.

The link? Well, in his calculation, the Fund for the future of children must not only ensure that no compensation is never lower than this SSMbut also that the ceiling of compensation granted ne does not exceed 5 thirds of this same unskilled minimum wage (today increased to 2,637 euros/month).

As a reminder, parental leave compensation takes into account two other factors. Who are:

  • the revenue value declared by the employer to the Social Security Affiliation Center during the 12 months preceding the start of the leave.
  • the average hours worked during the year preceding the start of CP.

In the intentions expressed at the start of its mandate, the Luxembourg Government indicated that it wanted “ continue to promote parental leave “. And this goes various measures. This could notably consist of a extended duration for this split leave. There is talk of adding a quarter to the possibility given to accompany your child until he was 6 years old.

Extra time that would not necessarily translate into more moneyt ; the same amount paid is then distributed over the new extended calendar. But no specific bill has yet been tabled.

In 2023, the EAC spent 373 million euros for parental leave. An amount up 13% in one year.

Not family allowances

Among the various benefits of the Fund for the Future of Children, only parental leave is impacted by the increase in SSM. The level of family allowances allocated will remain equal to that of December warns the future treasury.

Belgium

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