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 child maintenance and education.
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 back-to-school 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).
An online assistant on MyGuichet.lu is available to help you submit your application for family allowance online.
Who is concerned
Minor children
Any child, from the month of their birth until the age of 18, who:
- is legally domiciled in Luxembourg;
- actually lives in Luxembourg on an ongoing basis;
- is a family member of anyone who is subject to Luxembourg legislation and covered by European regulations or by another bilateral or multilateral agreement signed by Luxembourg on social security matters, 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 family allowance.
Adult children
This age limit is extended to 25 at the latest 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 line 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 income 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 as 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 temporarily 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 undertaking 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 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 actual and ongoing residence with the cross-border worker and their spouse or partner; 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 child A.
Child A is considered a family member and is entitled to family allowance if Ms C provides for their maintenance and if the child shares their common domicile and actual and ongoing residence with Mr B and Ms C.
How to proceed
Submitting the application
The application can be submitted:
- online via MyGuichet.lu using a LuxTrust product or an electronic identity card (eID) or via the MyGuichet.lu mobile app; or
- by post with the duly completed application form (see 'Online services and forms' below; the form is also available in the commune where the birth was registered) to be sent to the Children's Future Fund (Caisse pour l’avenir des enfants - CAE).
Luxembourg residents
Luxembourg residents must submit to the CAE:
- a copy of the child's birth certificate;
- a bank account identification document (RIB).
Whatever the situation, the CAE may request additional documents to support 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 required from residents, recently arrived residents in Luxembourg must also provide the following to the 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 residence permit and those for their other family members (or business permit for self-employed workers).
Non-residents working in Luxembourg
In addition to the documents required from residents, non-residents working in Luxembourg must also provide the following to the CAE:
- a recent residence certificate or household composition certificate listing all the family members;
- where applicable, a copy of the birth certificate of the persons who are applying for family allowance;
- where applicable, a bank account identification document (RIB);
- where applicable, a certificate attesting to the entitlement to family allowance, issued by the family allowance fund which last 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-residents (who have previously worked 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, however, payment may initially be suspended whilst the interested party's case is reviewed in light of their new circumstances. In view of the fact that specific rules apply to those in receipt of a pension, priorities may change.
Adult students
Provided they are still in secondary education, students who turn 18 can continue to receive the family allowance and the back-to-school allowance until the age of 25.
They must return, to the CAE, the application for continuation of family allowance that is sent to them:
- for the first time 2 months before their 18th birthday; and
- then at the end of July or the end of August each year.
The request for continuation must, where applicable, be accompanied by a school attendance certificate issued by the educational institution at the beginning of each school year.
The allowance is only paid up until 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 cannot be accepted by email or over the telephone.
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;
- to the parent freely chosen by mutual agreement if the separated parents share custody and the child lives which each parent for alternating periods;
- 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 a 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 first day of the month after the month in which said children who are eligible for the allowance are legally registered 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 from 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 on 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 are listed on our specific information page in the section 'Family benefits' under 'Old system'.
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 on 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, from 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 an appeal before the Social Security Arbitration Tribunal (Conseil arbitral de la sécurité sociale - CASS), and may be appealed before the High Council of Social Security (Conseil supérieur de la sécurité sociale - CSSS).
Online services and forms
Who to contact
-
Children's Future Fund (CAE)
- Address:
-
Children's Future Fund (CAE) Offices
- Address:
-
6, boulevard Royal
L-2249
Luxembourg
B.P. 394, L-2013 Luxembourg
- Phone:
- (+352) 47 71 53 1
- Website:
- https://cae.public.lu/en.html
Related procedures and links
Procedures
Links
Further information
-
Allowances
on the website of the Children’s Future Fund (CAE)
-
Family benefits
on Your Europe
-
Conditions for residents
on the website of the Children's Future Fund (CAE)
-
Conditions for non-residents
on the website of the Children's Future Fund (CAE)
Further information
Consult the current social parameters.
Legal references
-
Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004
on the coordination of social security systems
- Code de la Sécurité sociale
-
Loi du 27 juin 2006
adaptant certaines modalités d'application de l'échelle mobile des salaires et des traitements