The birth of a child is one of the most important moments in your life, and maximising the work-life balance is essential when you're starting a family. Parenting is about to get much easier in Luxembourg, where the government has just expanded the range of options for parental leave. Beginning on 1 December, maternity and paternity leave will be more flexible and better paid under the new parental leave regime. Want to know more but it sounds like astrophysics? Don't worry, here's a simple break down of the primary changes:

It's more flexible

Full-time leave: four to six months per child.

  • Part-time leave: eight to twelve months per child. You work half of the time you worked prior to taking parental leave.
  • Partial parental leave: 20 months per child. You work 20% less than your weekly working time prior to taking leave.
  • Split parental leave: 20 months maximum. You split your leave into four separate one-month periods.

Remember: regardless of your choice, you still have to get your employer's permission beforehand.

In some cases, it pays better

Compensation for parental leave is going up and will be indexed to the your revenue as the beneficiary. Up until now, compensation for parental leave has been fixed at EUR 1,778 per month. Starting in December, compensation will be based on your average salary for the 12 months prior to your request for parental leave. Gross compensation (subject to social contributions and tax withholdings) will range from EUR 1,922.96 per month (minimum wage for unskilled labour) to EUR 3,200 per month, a vast improvement compared to the former regime. Remember that if you worked part time prior to taking parental leave, your compensation will be prorated. Want to know what you would earn on parental leave? Calculate your new parental leave income here. Be sure to include your part time work when inputting your working hours.

Other significant changes

  • You can take parental leave until your child is six years of age (whereas the former regime allowed leave for a child up to five years of age).
  • You and your partner can take parental leave simultaneously. The reformed law will enable parents to take leave at the same time.
  • To qualify for parental leave, you must prove that you work an average of at least 10 hours per week (as opposed to 20 hours under the current regime).
  • If you have switched employers over the last 12 months, you will have to find out if any conditions apply in order to qualify for parental leave.

In other words, take your time and think about it. JIt takes time for your baby to adjust to his or her new surroundings, but new parents need time to adjust to parenthood, too. With all of these new options available, you can find a work-life balance that works for you as a new parent. To find out more, visit https://cae.public.lu/fr/allocations.html. Now you can choose what suits you best!

11/2021

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