The social security system and policies have specific aims, which are to protect any person to a sufficient extent against a number of contingencies likely to reduce or to suppress their activity, to impose additional burdens, to leave a survivor in need, or to reduce them to a state of dependency.
Any person working in Luxembourg has to be a member of one of the social security funds, depending on their occupation. Membership can be obtained via the Joint Social Security Centre (Centre commun de la sécurité sociale, CCSS).
How does the social security system work?
Luxembourg's social security system is made up of the following schemes: illness, maternity, work-related accidents or illnesses, pension, disability, survivor's insurance, family benefits, unemployment, long-term care insurance, early retirement, guaranteed minimum income.
Social security is managed by public institutions run by the social partners. The conception and supervision in the area of social security are delegated to:
The social security system is financed by the contributions of the insured and the public authorities. The contributions are paid to the Joint Social Security Centre.
In 2001, the Social security celebrated its 100th anniversary in Luxembourg. Compulsory health insurance for workers was introduced in 1901.
Health insurance funds
Since 1 January 2009, the following health insurance funds exist in Luxembourg:
- a health insurance fund for the private sector, the National Health Fund (Caisse nationale de santé, CNS);
- three health insurance funds for the public sector, namely:
- the Health Insurance Fund for Civil Servants and Public Employees (Caisse de maladie des fonctionnaires et employés publics, CMFEP);
- the Health Insurance Fund for Communal Civil Servants and Employees (Caisse de maladie des fonctionnaires et employés communaux, CMFEC);
- the Medical Aid Fund of Luxembourg's National Railway Company (Société nationale des chemins de fer luxembourgeois.
On 1 of January 2009, the National Health Fund took over the activities of the Health Fund Union (Union des Caisses de maladie, UCM) and of the following 6 health insurance funds in the private sector: the Workers' Health Insurance Fund, the Health Insurance Fund for Employees in the Private Sector, the Health Insurance Fund for ARBED Workers, the Health Insurance Fund for ARBED Employees, the Health Insurance Fund for the Self-Employed and the Agricultural Health Insurance Fund. In accordance with the law of 13 May 2008 introducing a single status for the private sector, an organisational structure of the social security based on socio-occupational distinctions was not permitted.
On 1 January 2009, the National Retirement Insurance Fund took over the activities of the following 4 pension funds from the general scheme:
- Old-Age and Invalidity Retirement Fund (Etablissement d'assurance contre la vieillesse et l'invalidité, AVI),
- Retirement Fund for Skilled Workers, Retailers and Industrial Workers (Caisse de pension des artisans, des commerçants, et industriels, CPACI),
- Retirement Fund for Private Employees (Caisse de pension des employés privés, CPEP),
- Agricultural Retirement Fund (Caisse de pension agricole, CPAG).
Apart from the general scheme, there are special schemes for civil servants and for agents of Luxembourg's National Railway Company.