With around 130,000 French cross-border workers recorded in the first quarter of 2026, France is Luxembourg's largest cross-border community. For these workers, 2026 is a particularly eventful year: contributions, remote work, taxation and indexation all come together.
Whether you are already a cross-border worker or considering taking the step, here is an overview of the main changes to know for 2026, without unnecessary jargon.
Each measure has a concrete impact on net pay, the tax household or future retirement. It is best to plan ahead.
1. Pension contribution rises to 8.50%
On 1 January 2026, the employee pension contribution rose from 8.00% to 8.50%, under the law of 18 December 2025. This 50 basis-point increase slightly reduces net pay but strengthens the general pension scheme.
2. Remote work from France: the 34-day threshold
The amendment to the France-Luxembourg tax convention allows a tolerance of 34 days of remote work per year from France without a change of taxation. Beyond that threshold, France recovers the right to tax the share of income corresponding to the days worked on its territory.
The 34-day count includes remote work but also certain business trips made outside Luxembourg. Rigorous tracking is essential.
3. Wage indexation of 1 June 2026
The new indexation tranche (+2.5%, coefficient 992.24) also applies to cross-border workers, because it is the place of work — Luxembourg — that determines the applicable law. Salaries, the minimum social wage and the contribution ceiling are raised accordingly.
4. Tax bonus for shared residence
Parents who do not benefit from tax class 1a can apply for a tax bonus of up to €922.50 per child in cases of shared residence. This measure, in force over the 2025-2026 period, is granted on request.
5. Pension savings and allowances
Several optimisation schemes remain open to cross-border workers:
- the annual pension-savings ceiling is raised to €4,500 (up from €3,200);
- the employee CO2 tax credit is maintained at €216 / year for incomes below €40,000;
- the allowance for staying in working life (AMVP) can reach €9,000 / year for those who continue working until age 65.
Do not forget reporting obligations in France
Even when taxed in Luxembourg, cross-border workers remain required to report their worldwide income in France, via forms 2042 and 2047. This declaration notably allows the effective rate to be calculated and avoids subsequent adjustments.
Taxation in Luxembourg does not exempt you from filing in France: the two administrations now exchange information automatically.
Social protection and healthcare
As employees affiliated in Luxembourg, cross-border workers fall under the National Health Fund (CNS). They have the option to receive care in Luxembourg or in France, and their dependants (spouse, children) may be covered under certain conditions. The French health card and CNS cover coexist: it is essential to correctly declare your affiliated body to avoid gaps in reimbursement.
On the pension side, periods worked in Luxembourg are taken into account in the overall pension calculation, under European coordination rules. Each country then pays its share in proportion to the quarters or years contributed on its territory.
Family allowances and benefits
Cross-border workers are entitled to Luxembourg family benefits for their children, including those residing in France, under the principle of non-discrimination. Where an entitlement also exists in France, a differential top-up mechanism prevents double payments while guaranteeing the more favourable amount. Here too, careful reporting to the Children's Future Fund (CAE) is decisive, and any change in family situation should be declared promptly to keep entitlements up to date.
Take stock with CorExperts
Between the tax convention, tax classes, social protection and optimisation schemes, a cross-border worker's situation deserves a personalised and regularly updated review. The rules change quickly and good anticipation avoids costly adjustments. Our firm supports French cross-border workers and their employers every day.
For an analysis tailored to your household, contact our experts or discover our tax advisory services.