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New in 2025
Several new legal and regulatory provisions directly impacting citizens will come into force in 2025. Below is an overview of the main changes. Please note that this list is not exhaustive.
Social security
Increase in old-age pensions
Effective date: 1 January 2025
In line with Article 225bis of the Social Security Code, pensions will be adjusted as of 1 January 2025. A 1.6% increase will be applied to reflect changes in the average salary level subject to contributions.
Education and Youth
New rules in schools and education and care facilities on the use of mobile electronic devices or similar devices with internet connectivity
Scientists highlight the negative impacts of uncontrolled screen use, such as sleep deprivation, physical inactivity, poor concentration, and impaired social development. To address these concerns, the Ministry of Education, Children and Youth will implement measures to protect pupils from over-consumption of digital technology, with the aim of balancing digital usage with real-life activities (Screen-Life-Balance).
In educational and care facilities for children not attending school (crèches)
Effective date: 1 January 2025
From 1 January 2025, the use of screens will be banned in educational and childcare facilities for children not attending school. This ban is included in agreements with suppliers.
In basic education and childcare facilities for schoolchildren
Effective date: April 2025
From after the Easter holidays, the use of mobile devices or similar internet-connected tools by pupils will be prohibited on school premises and childcare centers (maisons relais). However, electronic tablets may be used for teaching purposes, subject to the teacher's explicit authorisation.
In secondary schools
Effective date: June 2025
From after the Whitsun holidays, a physical distance between students and mobile electronic devices or other similar devices likely to have internet connectivity will become mandatory during lessons in secondary education. Additionally, schools must establish a charter governing the use of such devices on school premises.
Family
Targeted Social Measures to Support Energy Price Cap Phase-Out
Effective date: 1 January 2025
Energy allowance
To combat energy poverty and assist vulnerable households, the energy allowance will not only be renewed in 2025, but its amount will be tripled. The income threshold remains set at 25% above the cost-of-living allowance level. To further increase the number of beneficiary households, a reduced energy allowance amounting to half the energy allowance has been introduced for households with a monthly income between 25% and 30% above the cost-of-living allowance threshold.
(Regulation of the Government in council of 17 July 2024 on the granting of a cost-of-living allowance for the year 2025)
Tax credit equivalent (ECI)
The ECI will be maintained and increased to €90 for beneficiaries of the basic flat-rate allowance under the Act of 18 July 2018, as well as for recipients of the allowance for severely disabled individuals.
Bill 8424 was adopted by the Chamber of Deputies on 4 December 2024.
State contribution to financing the increase in energy costs for accommodation facilities for the elderly
The State's contribution to financing the increase in energy costs for retirement homes has been renewed for 2025. In return, the service providers benefiting from this contribution undertake not to apply any price increases during the period in question, with the exception of increases due to the adjustment of rates to the cost of living index.
Bill 8423 was adopted by the Chamber of Deputies on 4 December 2024.
Social measures to combat poverty
Effective date: 1 January 2025
10% increase in the cost-of-living allowance
Besides increasing the amount of the long-term cost-of-living allowance by 10%, the terms and conditions of entitlement have also been adapted to facilitate access to this social benefit and reduce the number of people who do not use it. For example, recipients of the inclusion allowance will automatically receive the cost-of-living allowance.
(Regulation of the Government in council of 17 July 2024 on the granting of a cost-of-living allowance for the year 2025)
Increase in the social inclusion income (REVIS) and the allowance for people with severe disabilities (RPGH)
The purpose of this text is to introduce an adjustment of 2.6% to the amounts of the social inclusion income (REVIS) and the allowance for people with severe disabilities (RPGH) in line with that proposed in a bill amending Article L. 222-9 of the Labour Code, which raises the minimum social wage rate from 1 January 2025.
Bill in progress (REVIS & RPGH)
Inclusion
Effective date: 28 June 2025
Entry into force of the Act of 8 March 2023 on accessibility requirements for products and services
New provisions have been introduced to improve the accessibility of a number of products and services, such as cash dispensers, e-banking and e-commerce, with the aim of strengthening inclusion and enabling all citizens to participate fully in society. When the law comes into force on 28 June 2025, businesses will be required to comply with the new accessibility standards.
The new Office de la surveillance de l'accessibilité des produits et services (OSAPS) will act as a reference body for accessibility, providing guidelines, tools and advice to help businesses improve the accessibility of their products and/or services. In addition, anyone can report non-compliant products and services to OSAPS.
Mobility
Tram extension to Findel from spring 2025
Effective date: March 2025
The two additional tramway stations, "Héienhaff P+R" and "Findel Luxembourg-Airport", are scheduled to come into service in March 2025. The first line will thus be complete, running from the Stade Luxembourg to the airport.
Finance
Reducing the tax burden on households
Effective date: 1 January 2025
Tax Scale Adjustment
The tax package means less tax for everyone, especially those on low incomes, by adjusting the income tax scale by 2.5 indexed bands on 1 January 2025.
Single-parent families
Households with a gross annual salary of up to €52,400 will be exempt from taxes for the 2025 tax year.
Minimum wage for unskilled workers
Bill 8414 introduces a tax exemption for the minimum social wage for unskilled workers from 1 January 2025 for all tax classes.
Other measures in the ‘Entlaaschtungspak’
- Thanks to the tax measures, various specific programmes in favour of talent and highly specialised profiles will be made more attractive to the employees concerned. The same applies to the profit-sharing bonus and the impatriate scheme.
- Introduction of a new young employee bonus, as well as an overtime tax credit for cross-border workers.
- In order to encourage companies to recruit more unemployed people, the related tax rebate has been extended until the end of 2026.
- Council tax rates will be reduced by one percentage point and actively managed ETFs will be exempt from subscription tax from 2025.
- Adaptation of the rule limiting additional borrowing costs and the legal regime for family asset management companies as an anti-abuse measure.
Companies
Tax relief for investment
Companies that have received a certificate of eligibility for a project in the field of digital transformation or environmental and energy transition, are reminded that, as of January 1, 2025, they can access the procedure for applying for an expenditure certificate via the MyGuichet platform. An information page on this procedure is also available on Guichet.lu.
Please note that, under Article 6 (2) of Article 152a of the L.I.R., the application for a certificate must be submitted no later than two months after the end of the financial year in which the investments or operating expenses were incurred.