Due to the current Covid-19 situation, the reception desks of the Children's Future Fund (Caisse pour l'avenir des enfants - CAE) are currently closed. The CAE can still be reached by telephone and via the contact form.
This measure has no impact on the processing of your file or on the payment of your benefits and other allowances.
Find out more about the online procedures and the application forms of the CAE.
Parental leave enables the parents of a young child to take a break from their professional career or reduce their working time so that they can devote more time to bringing up their child. They are entitled to return to their previous jobs at the end of the leave.
The parent can request:
Parental leave is only granted once per child.
During parental leave, the parent is entitled to an allowance paid by the CAE as a replacement income.
Each parent is entitled to parental leave for each of their children after the birth or the adoption of one or several children.
Parental leave is available to:
If one of the parents waives their right to parental leave, the leave cannot be transferred to their spouse to allow the latter to take 2 periods of parental leave.
The (future) parent must:
Note: in the case of a cessation, merger or transfer of a business, the immediate transfer of an employee to another position is not considered to be a change of employer.
The parent can request either:
If the maternity or adoption leave is not due or has not been taken, any parental leave that might be due must be taken from:
A salaried worker whose trial period ends after the maternity or adoption leave can only request the second parental leave. The second parental leave may only be requested after the end of the trial period.
In the case of single-parent families, whether separated or divorced, the parent who has custody of the child may choose between the first and second parental leave. The parent does not lose the right to the first parental leave if it is not taken immediately after the maternity or adoption leave.
If both parents are applying for the parental leave at the same time, they must specify in their applications who will be taking the first parental leave and who will be taking the second parental leave. In the event of disagreement, the first parental leave will go to the person whose surname comes first (alphabetically).
If only one parent is entitled to parental leave because the other parent does not qualify for it, the parent who is entitled to the leave may choose between the first and the second parental leave.
The first and second parental leaves can be taken on a full-time, part-time or split basis, depending on the number of hours shown in the parent's employment contract and their employment status:
The monthly work time is that which is shown in the parent's employment contract on the date on which the application for parental leave is submitted to the employer.
If the monthly work time changes in the 12 months preceding the parental leave, the average work time for the year in question is taken into account. However, if the number of working hours changes after the application for parental leave has been submitted, the new working hours will not be taken into account when calculating the duration of the parental leave.
For example: if a parent applies for parental leave on 1 August 2022 and their working hours changed from 70 % to 100 % on 1 March 2022, the time frame that will be taken into account to calculate the average number of monthly working hours will be the period from 1 August 2021 to 31 July 2022. As such, since the parent is now working full-time, they could, for example, apply for a split leave. The result obtained from calculating the average work time will be used for establishing the parental leave allowance.
A salaried parent who wishes to take part-time or split parental leave must draw up and sign a parental leave plan that must approved by their employer.
The parental leave plan:
After that, the only changes that may be made to the parental leave plan are those impacting the work schedule or the calendar month, and any such changes may only be made with the employer's approval.
If the employer refuses to grant this type of parental leave, they must:
The purpose of this meeting is to:
If no agreement is reached and no parental leave plan is signed within 2 weeks of the interview, the employee will be entitled to full-time parental leave for either 4 or 6 months.
Parents who are employees or apprentices may submit their parental leave application to their employer:
The application must mention:
If the application for leave is submitted in accordance with the formal requirements and within the legal time frames, the employer may neither refuse nor postpone the first parental leave.
However, they can refuse parental leave if it is requested in the form of part-time or split leave. In this case, the employer must inform the employee by registered letter with acknowledgement of receipt at the latest within 2 weeks of the request and invite them to an interview within 2 weeks of this notification.
The employee must then take full-time parental leave or waive their leave.
Parents who are employees or apprentices may submit their parental leave application to their employer:
at the latest 4 months before the date on which they wish to start their parental leave.
The employee must therefore submit the application on time, given that the employer can postpone the start of the second parental leave.
The parent's application for leave must mention:
Employers cannot refuse the second parental leave if taken on a full-time basis.
They may, however:
The employer can request that the leave be postponed:
The leave cannot be postponed if:
If the second parental leave is postponed, the employer must inform the employee of their decision:
The employer must also inform the staff representatives.
Once an agreement has been reached on the new terms of the leave, the employer must then complete and sign the application for the parental leave allowance submitted by their employee or apprentice.
If the postponement cannot be agreed upon, the case may be referred to the labour tribunal.
Only then can the employee or the apprentice submit the application to the CAE.
During paid parental leave, the parent is entitled to a monthly parental leave allowance, which is paid by the CAE to replace the parent's earned income.
The allowance is subject to social security contributions and taxes based on the data shown on the employee's tax card, on which the CAE appears as the employer.
The Luxembourg Inland Revenue (Administration des contributions directes – ACD) will automatically update the employee's tax card (no action is required by the employee) within 30 working days, on average.
The parental leave allowance can be claimed for up to 2 years from the end of the month for which it is due.
The amount of the allowance is calculated based on the average monthly income earned in the 12 months preceding the start of the parental leave.
If the earned income changes after the start of the parental leave, the allowance will be recalculated.
The CAE provides a tool for calculating the amount of the parental leave allowance on its website.
Each monthly payment is paid by the CAE in the month for which it is due, provided that the application and supporting documents were submitted on time.
If the parent becomes pregnant or adopts a child during the parental leave and, as such, is entitled to maternity or adoption leave, the new maternity allowance will replace the parental leave allowance. In that case, the maternity allowance will be calculated based on the data appearing in the employee's initial employment contract.
To qualify for the parental leave allowance, a parent who has been granted parental leave must submit an application for parental leave allowance to the CAE. The application must be duly certified by the parent's employer and accompanied by the parental leave plan.
This application must be:
To qualify for parental leave, self-employed parents must submit their application for parental leave directly to the CAE by registered letter with acknowledgement of receipt:
They must also enclose a declaration on honour with their application.
Entitlement to the parental leave allowance will be lost if the qualifying conditions are no longer met.
Beneficiary parents must inform the CAE, within one month, of any event that may lead to a reduction in the parental leave allowance or the loss of their entitlement to the allowance.
If an employee tenders their resignation, or if the employee's employment contract is terminated by mutual agreement, before the parental leave has ended, the termination of the employment contract will result in the termination of the parental leave. The employee must then reimburse the entire amount of the allowances received from the CAE.
During the full-time parental leave, the employer must:
During part-time or split parental leave, the employer must:
When an employee returns to work after the parental leave, the employer must submit a new declaration of entry to the CCSS.
In the event of multiple births (e.g. twins) or multiple adoptions, the parental leave is granted in full for each child.
For each child, the parents:
Parental leave is interrupted if a new maternity or adoption leave is granted. In this case, the maternity/adoption leave will replace the parental leave, and the remaining duration of the parental leave will be carried over to the new maternity or adoption leave.
If, for their new child, the parent decides to take parental leave right after their maternity/adoption leave, the new parental leave will be postponed automatically until the end of the part of the initial parental leave that was added to the maternity or adoption leave.
For example: A mother is on parental leave for their first child from 1 January to 30 June. The maternity leave for their second child starts on 1 May. The parental leave for their first child will be interrupted and the 2 remaining months will have to be taken at the end of the maternity leave for their second child, i.e., from 1 October to 30 November.
An employer may replace an employee on parental leave with a new employee hired on a fixed-term employment contract.
The new employee can be employed:
In any event, the replacement employee's employment contract:
To facilitate their reincorporation on returning from parental leave, and to ensure that they are still employable, employees may:
These measures must be mutually agreed upon by the employee and employer at the latest one month before the start of the parental leave through an addendum to the employee's employment contract. However, the employee may put an end to these measures at any time without any negative consequences for themselves.
Employees on parental leave are protected against any form of dismissal with notice:
This protection is guaranteed from:
However, the employee is not protected against dismissal with immediate effect for serious misconduct. In that case, the termination of the employee's employment contract will result in the termination of the parental leave, and the employee will then have to refund any parental-leave allowances they had already received.
Employers are required to:
On the other hand, during full-time parental leave, an employee will not accrue any new annual leave, whereas during part-time parental leave (leave granted in proportion to the weekly working time) and maternity/adoption leave, they will. During full-time parental leave, the employee's employment contract is put on hold.
At the end of parental leave, an employee must be reinstated into their job or a similar job (in terms of pay and qualifications).
An employee who returns to their initial job after their parental leave has the right to a meeting with their employer. The purpose of this meeting is to give the employee the opportunity to ask for a different work schedule and/or work rhythm for a specific period of time which may not exceed one year from the day that has been set for their return to work.
If the employee's request is refused, the employer must justify their decision.
If the employer does not fulfil these obligations, the employee can lodge a claim for compensation for damages with the labour tribunal, which will determine the amount of damages.
The employee can keep any allowances they had already received if they return to work before the end of their parental leave as a result of a change of employer.
In the event of an early return to work with the same employer, with an interruption of parental leave, any compensation received must be reimbursed in full, unless the interruption is justified by reasons beyond the employee's control.
The employee's right to leave will then end on the day they return to work, and any remaining months of parental leave will be lost.
On the other hand, the new employer may also allow the employee to continue the parental leave that began under the previous employer.
In all events, the employee must first inform the CAE.
At the end of their parental leave, employees are required to return to their jobs, unless they decide to terminate their employment contract.
If the employee does not wish to return to work at the end of their parental leave, they must inform their employer by registered letter with acknowledgement of receipt, with the same notice that would apply in case of resignation.
Termination of labour relations by mutual agreement after parental leave is, of course, always possible.
If the employee does not give their employer notice of their resignation by registered letter with acknowledgement of receipt, and does not return to work at the end of their parental leave, this could be considered as a case of serious misconduct warranting dismissal with immediate effect.
If an employee tenders their resignation or if their employment contract is terminated by mutual agreement, before the parental leave has ended, the termination of the employment contract will result in the termination of the parental leave. The employee will then be required to reimburse the entire amount of the allowances received from the CAE.
A parent must return to work at the latest one month after the death of a child or the refusal of an adoption application. If the employer has hired someone to replace the parent on parental leave and is unable to offer the parent a job matching their qualifications and their compensation, the parental leave will continue uninterrupted, but cannot run beyond its original end date.
If a parent changes employer during their parental leave, the leave may be continued without interruption, provided that:
In this case, the parent must send the following to the CAE:
If the employee decides to return to work with the new employer before the end of their parental leave, they can keep the allowances they have received up until the date of their return.
Disputes can be referred to:
Caisse pour l'avenir des enfants - activation de l'eDelivery pour congé parental
Transmission ou modification des coordonnées bancaires pour les bénéficiaires d'un congé parental
Requesting a payment certificate from the Children’s Future Fund (CAE)
Demander une attestation de paiement auprès de la Caisse pour l’avenir des enfants (CAE)
Démarche en ligne
Eine Zahlungsbescheinigung bei der Zukunftskasse (CAE) anfragen
Caisse pour l'avenir des enfants - boîte de réception eDelivery pour congé parental