Family allowance

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Family allowance is a financial benefit designed to help households bring up their children by compensating expenses related to the maintenance and education of children.

Each child is entitled to the following until the end of their schooling (or until the age of 25 at the latest:

  • a monthly allowance from the month the child is born; and
  • a school start allowance from the child's sixth birthday.

Family allowance applications must be submitted to the Children's Future Fund (Caisse pour l’avenir des enfants - CAE).

MyGuichet.lu has made an assistant available to help you submit your application for family allowances online.

Who is concerned

Minor children

Each child, from the month of their birth until the age of 18, who:

  • is legally domiciled in Luxembourg;
  • lives in Luxembourg on an actual and uninterrupted basis;
  • is a family member of anyone who is subject to Luxembourg legislation and covered by European regulations or by another bi- or multilateral agreement signed by Luxembourg on social security matters and providing for the payment of the family allowance under the legislation of the country of employment, provided that the child lives in a country covered by such regulations or by the agreements in question.

Children of employees who are temporarily posted to Luxembourg and who are not registered with the Luxembourg social security system are not entitled to the family allowance.

Adult children

This age limit is extended to the age of 25 at the most for children who:

  • actually pursue an education in an establishment and as their main occupation. The education must be of the following type:
    • classic or general secondary education or a similar education:
    • at least 24 hours a week;
  • actually pursue studies or training in accordance with their abilities at a specialised training institute or a centre of competence in specialised psycho-pedagogy, within the establishment and as their main occupation;
  • pursue an apprenticeship in accordance with the provisions of Articles L. 111-1 et seq. of the Labour Code and whose compensation is lower than the social minimum wage.

In this respect, the following are not included:

  • evening classes (since students have to be in education for at least 24 hours a week and this must be their main occupation);
  • distance learning (e.g. eBac-type training, homeschooling).

Prerequisites

Domicile and residence

To be eligible for the family allowance, children must be legally domiciled in Luxembourg and must actually live there on an ongoing basis.

These conditions are met when the child:

  • is a family member of someone who, whilst retaining their legal domicile in Luxembourg, is living abroad on a temporary basis with their family, for reasons pertaining to the person in question, their spouse or their partner (provided that they are not separated);
  • temporarily resides abroad with the parent who:
    • is in higher education, attending university or taking professional training in the foreign country in question;
    • has been posted there by their employer but is still registered with the Luxembourg social security system;
    • is part of a Luxembourg diplomatic mission abroad or is a member of staff of a mission abroad;
    • is involved in a development cooperation mission as a cooperation agent or as a volunteer development worker;
    • is part of a peacekeeping mission relevant to Luxembourg as part of an international organisation;
    • is working as a volunteer.

Under exceptional circumstances, the CAE may grant exemptions.

Children brought up abroad but who have one parent working in Luxembourg are also entitled to the family allowance. The amount of the allowance may vary depending on allowances already awarded in the country of residence.

For time spent abroad, the beneficiary must have retained legal domicile in Luxembourg.

Family members

Children who are deemed to be family members and who qualify for the family allowance are:

  • children born in wedlock;
  • children born out of wedlock;
  • adopted children.

The children of the spouse or partner of a person who works in Luxembourg (cross-border worker) are considered family members, provided that:

  • they legally share a common domicile and effective and continuous residence with the cross-border worker and their spouse; and
  • the cross-border worker provides for their maintenance.

For example:

Mr B has a son A.

Ms C, the wife of Mr B works in Luxembourg.

Mr B and Ms C live in France with their child A.

Child A is considered a family member and is entitled to family allowance if Ms C provides for his maintenance and if the child shares their common domicile and an effective and continuous residence with Mr B and Ms C.

How to proceed

Filing an application

The application can be submitted:

  • online using MyGuichet.lu with a LuxTrust product (Smartcard, Token, etc.) or an electronic identity card (eID) or by using the MyGuichet.lu mobile application; or
  • by post with the duly completed application form (see under 'Online services and forms' below; the form is also available at the commune where the birth was registered) to be sent to the Children's Future Fund (CAE).

Luxembourg residents

Luxembourg residents must submit to the CAE:

  • a copy of the child's birth certificate;
  • a bank account identification document.

Whatever the situation may be, the CAE may request additional documents to complete the application. These documents can be sent:

  • by post; or
  • via MyGuichet.lu.

Residents who have recently arrived in Luxembourg

In addition to the documents requested from residents, recently arrived residents in Luxembourg must also provide the following to the Childrens Future Fund (CAE):

  • for EU citizens:
    • a certificate of cessation of payment or non-payment of family allowance from their former family allowance fund competent in this matter;
  • for third country nationals who legally exercise a professional activity in Luxembourg (for which they are registered with the Luxembourg social security system):
    • their authorisation to stay as well as the ones for their other family members (or the business permit for self-employed workers).

Non-residents working in Luxembourg

In addition to the documents requested from residents, non-residents working in Luxembourg must also provide the following to the Childrens Future Fund (CAE):

  • a recent residence certificate or household composition certificate listing all the family members;
  • where applicable, an extract from the birth certificate concerning the person for whom the family allowance is applied for;
  • a bank account identification document (RIB);
  • where applicable, a certificate stating the right to family allowance issued by the last family allowance fund that paid the allowances.

The family allowance application form must state whether family allowances are already being paid for these children by another institution (in order to obtain a differential supplement, where applicable).

Non-resident pensioners (previously working in Luxembourg)

If they are in receipt of a Luxembourg pension, retired cross-border workers continue to receive the Luxembourg family allowance. Non-resident pensioners are entitled to the full range of family allowances as if they were still working.

Upon retirement from work, however, payment may initially be suspended whilst the interested party's case is reviewed in line with their new circumstances. In light of the fact that specific rules apply to those in receipt of a pension, a change of priorities is possible.

Adult students

Students who have just come of age (18 years of age) may continue to receive the family allowance and the back-to-school allowance until they turn 25.

To do so, they must submit a school attendance certificate, issued by the educational establishment, to the CAE at the beginning of each school year.

The allowance is only paid to 31 July each year.

Adult children can ask for the family allowance to be paid to them directly. For this to happen, they need to apply to the CAE by post, also submitting a bank account identification document (RIB). Applications by email or over the telephone cannot be accepted.

Students in higher education cannot claim the family allowance.

Payment

The family allowance is paid:

  • to the parents, if the child is raised in the joint household;
  • in the event of alternating residence, to the parent freely chosen by common agreement;
  • in other cases, to the parent, or to the natural or legal person with whom the child is legally domiciled in Luxembourg and with whom the child actually lives.

In the event of dispute as to who should receive the family allowance, the CAE decides in the best interests of the child.

The family allowance is paid:

  • for births, from the month of birth;
  • in all other cases, from the calendar month following the event giving rise to entitlement to the family allowance;
  • for children arriving in Luxembourg, from the 1st of the month after the month in which said children who meet the criteria for the allowance to be granted are legally declared in Luxembourg;
  • if workers have been registered for the best part of a calendar month.

Any change of circumstance occurring during the course of a particular month is not taken into consideration until the 1st of the following month.

Differential supplements are paid at the end of January and July, provided that the documents submitted to the CAE are complete.

Amount of family allowance

New system as of 1 August 2016

The amount of the family allowance is set per child and per month.

This amount is increased for each child from the month in which the child turns 6 and again from the month in which the child turns 12.

The amounts are listed in our specific information page in the section 'Family benefits'.

For non-residents, the amount of family allowance varies according to the amount of benefits received in their country of residence. Luxembourg will then pay a differential supplement, if applicable.

Transitional system

There is a transitional system for children whose entitlement to family allowance starts before 1 August 2016, and who are members of a household with 2 or more children.

The amounts for the transitional system (old system) are listed in our specific information page in the section 'Family benefits'.

Back-to-school allowance

Children in receipt of the family allowance are automatically granted the back-to-school allowance. It is paid in August of each year until the year in which the pupil finishes or drops out of school.

The amount of the back-to-school allowance is listed in our specific information page in the section 'Family benefits'.

Discontinuation of the payment

The allowance ends:

  • the month after the death of a child who is in receipt of the allowance;
  • when an apprentice's pay rises above the social minimum wage;
  • if, during the course of their studies, students receive income equivalent to, or higher than, the social minimum wage for a minimum of 4 out of 12 months, under a paid internship or whilst carrying out a professional activity;
  • from the month after the student gives up their current courses of study.
  • as soon as the cross-border worker is deregistered from the mandatory registration with the Joint Social Security Centre.

Appeal

Only a ruling from the Chair (bearing a signature and the words 'on behalf of the chair', sent by registered letter) can be appealed before the CAE Board of Directors. A written objection, stating the reasons for the objection, must be sent to the CAE, by post, within 40 days.

The decisions of the Board of Directors of the CAE can be subject to a remedy before the Social Security Arbitration Tribunal (Conseil arbitral de la sécurité sociale), and may be appealed before the High Council of Social Security (Conseil supérieur de la sécurité sociale).

Online services and forms

Online services

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My data

Who to contact

Children's Future Fund

Related procedures and links

Procedures

Links

Further information

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Social parameters

Consult the current social parameters.

Legal references

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