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Internationales Arbeitsrecht Luxemburg

Luxembourg: Fiscal reform with impact on employment law

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As part of the fiscal reforms due to come into force on 1 January 2017, the Tax Administration (Administration des Contributions Directes) published a newsletter on 19 December 2016 about the tax value of payments in kind in the form of meal vouchers.


The Administration des Contributions Directes reminded first that the value of payments in kind is currently set at 2.80 Euros for meals offered by employers to employees in a restaurant for the main meal eaten during a working day.

In other words, either the employee has to pay this amount to the employer, or this amount of 2.80 Euros is taxed. However, if the price of the meal charged by the restaurateur is more than 8.40 Euros, the tax value of the payment in kind is set at 2.80 Euros, plus the difference between that price and 8.40 Euros.

The government, in consultation with the social partners, plans to increase the rate of 8.40 Euros to 10.80 Euros. The value of the payment in kind of 2.80 Euros remains unchanged.


  • Voucher value: €10.80 – Employee’s contribution: €2.80

The benefit to the employee of the difference between 10.80 and 2.80 = 8.00 Euros is exempt from tax.

  • Voucher value: €12.00 – Employee’s contribution: €2.80

The benefit to the employee is 9.20 Euros (12.00 – 2.80), 1.20 Euros (12.00 – 10.80) of which is taxable, and 8.00 Euros (10.80 – 2.80) of which is exempt from tax.

All of the measures included in the fiscal reforms are available at

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