Abroad|06/02/19

LUXEMBOURG: The bonus/penalty system comes into effect

Home > The news of EUROGIP and occupational risks in Europe > LUXEMBOURG: The bonus/penalty system comes into effect

Luxembourg is one of the rare European countries in which there is a uniform rate of OSH insurance contributions, established by a 2011 reform. The regulation of the Grand Duchy of 8 February 2016 introduced the conditions of application of the bonus/penalty system which comes into effect as of fiscal year 2019.

The basic rate of each contributor can be reduced or increased by a personal multiplication factor called the bonus/penalty factor. To calculate this factor, contributors are divided into 17 risk categories based on their main activity and compared with the other contributors in the same category. This comparison is based on the cost of accidents.

The contribution rate is therefore equivalent to the uniform contribution rate multiplied by the bonus/penalty factor.

Calculation of the charge scales is based on benefit payments imputed to occupational injuries (neither travel injuries nor occupational diseases are taken into account) occurring from 1 January 2011 and paid during an observation period between 1 April of the second-to-last year and 31 March of the year preceding the fiscal year of application of the bonus/penalty system. The first observation period is from 1 April 2017 to 31 March 2018.

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