Luxembourg caps civil-service remote work at 60% as employers press for a cross-border safe harbour

Luxembourg has set a new framework for remote working in the civil service, allowing up to 60% of working hours to be worked remotely, subject to the nature of the duties and the interests of the service. The private sector has responded by reopening the recruitment argument, since public-sector terms now compare favourably on flexibility as well as security.

The employers’ body UEL has used the moment to press a specific and concrete ask: that up to 25% of cross-border remote work be made neutral for both tax and social security, while limiting the risk that a home office abroad creates a permanent establishment for the employer. Labour Minister Marc Spautz told the EPSCO Council on 19 October that any European framework on teleworking must account for Luxembourg’s very high share of cross-border workers and stay consistent with the tax agreements negotiated with neighbouring states.

Why this matters. Luxembourg is the clearest test case in Europe for cross-border remote work, because a very large share of its workforce lives in Belgium, France or Germany and commutes in. Every day that a cross-border employee works from home is a day worked in their country of residence, which engages bilateral tax thresholds and the social-security rules on where contributions are due. That is why a 25% safe harbour is the specific number being asked for rather than a general principle.

If you are an employee living in one EU country and working for an employer in another, this is the debate that decides how many days a year you can work from home without changing where you are taxed or insured. It sits alongside the European Commission’s own modelling on cross-border telework above 25%, and the Quality Jobs Act due in December. For the current position, see our guide to the cross-border remote work tax trap.