Luxembourg Pensions – A Rough Guide

Ever wondered how the Luxembourg State Pension is calculated? Here is a rough guide to help with your retirement planning.


Calculating Luxembourg Pension

It is calculated on 80% of earnings on a 40th basis.

The maximum salary that counts towards the pension is 5 x the minimum social salary = +/- €8500 per month before tax.

So, for someone earning €120,000 gross p.a. the pension calculation on a yearly basis is:

120,000/12 = 10,000 per month.

The maximum contribution is based on 8,500 per month = 102,000 p.a. can be taken into consideration for Pension rights.

102,000 x 80% = 81,600

81,600 x 1/40 = a yearly pension right of 2,040.

If they had this salary for 12 years and the minimum social salary was unchanged after 12 years they would have an annual pension right of €20,400.



If someone has worked less than 10 years in Lux then there is no standalone Lux Pension.

Working time in Luxembourg will be used on a pro-rata basis and include foreign earnings over 40 years – the authorities will not produce a projection as there are too many variables.

If someone has worked 10 or more years then there will be a standalone pension worked solely on Lux Earnings and relevant pension contributions.