On 1^st A number of provisions relating to employment law came into force on 1 January 2024:

• Flat-rate allowances for subsistence expenses from 1^st January 2024

A ruling by the Government Council (hereinafter, "the Regulation"") signed on 18 December 2023 and published on 19 December 2023 sets the flat-rate allowances for subsistence expenses for civil servants and State employees. In practice, these rules can also be applied to private sector employees if employers so wish.

The per diem allowance, as well as the overnight allowance for trips within the country, are changed on 1^st anuary every year by a Government Council ruling. The Ruling thus sets the per diem allowance at 14 Euros and the overnight allowance at 56 Euros.

The per diem allowance, as well as the overnight allowance for trips abroad, also change on 1^st January every year, and vary depending on the country.

• Remote working for German cross-border workers

On 14 December 2023, Luxembourg's Members of Parliament voted to the increased taxation tolerance threshold for cross-border workers who live in Germany and work in Luxembourg.

Cette augmentation résulte d’un avenant signé le 6 juillet 2023 à Berlin qui vient modifier, entres autres, le seuil de tolérance prévu en matière fiscale permettant ainsi aux travailleurs qui résident en Allemagne et travaillent au Luxembourg d’exercer leur activité salariée pendant 34 jours par an en dehors du territoire luxembourgeois (État de résidence ou tout autre État tiers) tout en restant soumis à l’impôt au Luxembourg. Ce seuil de tolérance a été étendu aux « salaries which come under the scope of application of the civil service Germany has also ratified this agreement.

Ce nouveau régime s’applique à partir du 1^st January 2024.

• Extending the scope of sporting leave

The law of 21 July 2023 on sporting leave came into force on 1^st January 2024 (with the exception of certain specific provisions which came into force on 4 August 2023).

This law extends the circle of potential beneficiaries of sporting leave to sportsmen and sportswomen who hold a licence from a club affiliated with an approved sports federation to prepare for and take part in international competitions, judges and referees who have been licensed and selected by the international sports federation to take part in international competitions or international training courses duly authorised by the federations, as well as administrative and technical staff to deal with the day-to-day running of the organisation and to accompany sportsmen and sportswomen to official international competitions and preparatory training courses.

• New meal voucher scheme

Two new Grand-Ducal Regulations on meal vouchers were published on 27 September 2023 (Mémorial A621 and Mémorial A622 of the Official Gazette) and came into force on 1^st January 2024.

The key changes are as follows:

• The Meal vouchers are set to be digitised, whereby it is specified that " the awarding of meal vouchers in paper form by the employer as well as the issue of such (paper) meal vouchers by the issuers will remain permitted until 31 December 2024.»;

• The criteria subject to which meal vouchers may be used are updated, i.e. the scope of application is broadened to include the purchase of food items and the number of meal vouchers that may be used will be limited to 5 per day

• The value of a meal voucher will be 15 euros starting from the 2024 tax year. The maximum exemption value is set to go up to €12.20, with the €2.80 personal contribution from the employee remaining unchanged. As the employees’ personal contribution remains unaffected, employers will be free to increase their contribution towards the meal vouchers up to the face value of €15, albeit without being under any obligation to do so.