Your first Luxembourg payslip, explained line by line
A Luxembourg payslip has a logic: gross, then social contributions, then a taxable base, then tax and credits, then other deductions, then net. Once you see the order, the codes stop being scary.
From gross to taxable
Salaire brut is your base plus overtime, bonuses and benefits in kind. Three employee social contributions come off it: pension 8.5% (8% until December 2025; the pension reform raised it on 1 January 2026), health insurance 2.80% + 0.25% (CNS) and dependency insurance 1.4% calculated on gross minus a quarter of the minimum wage. Pension and health are deductible, dependency is not, so the taxable base (brut imposable) is gross minus pension minus health.
Tax and credits
Retenue d'impôt is computed from the monthly scale for your tax class (1, 1a or 2) as printed on your tax card. Two credits are applied directly on the slip when the card allows it: the CIS (crédit d'impôt salarié, up to 50 EUR a month) and the CI-CO2 (up to 14 EUR a month), both phasing out above 40,000 EUR of annual gross. Low earners may also see the CISSM.
Other lines
Chèques-repas: your share, usually 2.80 EUR per voucher, is deducted; the employer pays the rest tax-free up to 15 EUR. Avantage en nature voiture: the car's taxable value is added to the bases and removed again so your cash net is not inflated. Indice: the cost-of-living index applied to your salary; it jumps 2.5% when a tranche triggers. Solde congés: leave balance, at least 26 days a year.
What to check every month
Gross minus all deductions equals net; the three contribution rates; your tax class; that the index number is current; the number of meal vouchers against days worked; overtime at 140%. Payslop runs these checks for free.
Check your own payslip. Upload it and every line is explained, the rates verified and the questions for HR written for you. Free, nothing stored. Decode my payslip
Questions people ask
Why is dependency insurance not exactly 1.4% of my gross?
Because an allowance of a quarter of the unqualified minimum wage (692.83 EUR since the June 2026 index tranche, 675.94 EUR before) is subtracted from the base first, for employees working at least 150 hours a month.
Where is my employer's contribution?
It is not deducted from you. Some slips print it as information ('charges patronales'), roughly 12% to 15% of gross.
Related guides
- No tax card in Luxembourg: why 33% is withheld
- Chèques-repas: what you pay and what you get
- Index tranche: did your salary really go up 2.5%?
Indicative rules as of October 2026. Not tax or legal advice.