Guides the full payroll cycle for Luxembourg-resident employees: CCSS registration and monthly social-contribution declarations (SECUline), monthly PAYE withholding via the fiche de retenue d'impôt on MyGuichet.lu, and the annual extrait de compte salaire filed with the ACD by 1 March.
Confirm the employer is registered with the CCSS (matricule employeur) and that a valid electronic fiche de retenue d'impôt has been transmitted by the ACD for each employee. For any new hire, file the Déclaration d'entrée (DPE) via SECUline or MyGuichet.lu within 8 days of the start date. Determine the employer's sector (public vs private), MDE absenteeism class, and AAA accident bonus-malus factor before the first payroll run.
Calculate the monthly gross remuneration, apply the correct 2026 CCSS parameter set (index 968.04 until 31 May 2026; index 992.24 from 1 June 2026), deduct the employee social contributions (pension 8.50%, health 3.05% on cash or 2.80% on bonuses/benefits-in-kind, dependency 1.40% on gross less the EUR 675.94 abatement with no ceiling), then apply the ACD withholding tables (barème) using the tax class from the fiche de retenue d'impôt and offset any CIS/CISSM/CIM credits to arrive at net pay.
File the Déclaration de salaires via SECUline by the 24th of the month following the salary period, declaring each employee's gross remuneration and contribution bases. Pay the consolidated CCSS decompte (covering all branches for both the employee and employer shares) within 10 days of the statement date. Late payment attracts default interest of 0.6% per full calendar month.
File the Déclaration de la retenue d'impôt sur rémunérations et des crédits d'impôt bonifiés via MyGuichet.lu and remit the withheld income tax plus solidarity surcharge (7%, or 9% above the EUR 150,000/300,000 thresholds) to the ACD. The filing and payment frequency depends on the monthly withholding amount: monthly if ≥ EUR 750, quarterly if EUR 75–749, annually if < EUR 75. Payment is due by the 10th of the month following the period.
By 1 March of the following year, file the annual extrait de compte salaire (salary statement) with the ACD via XML upload or the MyGuichet.lu online assistant, reporting all salaries paid and income tax withheld for each employee during the tax year. Reconcile the total CCSS contributions declared on the Déclarations de salaires against the CCSS decomptes received, and confirm no entry/exit declarations are outstanding.
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Luxembourg Social Security Contributions (Cotisations Sociales)
Use this skill whenever asked about Luxembourg social security contributions (cotisations
Luxembourg Payroll
Use this skill whenever asked about Luxembourg payroll processing for employed persons. Tr