13th Month Bonus in Luxembourg: Tax Impact & Net Amount

The 13th month bonus is standard in Luxembourg and can represent a significant financial boost — but it's often taxed more heavily than you might expect.

What is the 13th Month Bonus?

The 13th month bonus is an extra month's salary paid once a year — typically in November or December. It's included in most collective agreements, though it is not legally required by the Labour Code.

How is it Taxed?

• Added to your annual gross income
• Subject to progressive income tax at your marginal bracket
• Subject to social contributions (CNS, pension, dependency)
• Subject to the solidarity surtax

There is no special tax rate for bonuses in Luxembourg.

Practical Example

• Marginal tax rate: ~32%
• Social contributions on bonus: ~12.45%
• Net bonus received: approximately €2,700–€2,900

When is it Paid?

Most Luxembourg employers pay the 13th month in November or December. Some pay in two instalments (50% in June, 50% in December).