The number of claimants registered to Luxembourg's social security system exceeds the actual population of the Grand Duchy, mainly as non-residents are entitled to pay into the system. These non-residents (broadly cross-border workers) pay into the Grand Duchy's security system and naturally benefit from the system as well.
The General Inspectorate of Social Security (IGSS) published its 2019 report earlier this week, revealing a positive balance of €284 million, calculated from an annual revenue of €13.7 billion and spending of €13.4 billion. The balance corresponds to 0.5% of Luxembourg's GDP.
Revenue only rose marginally due to the pension's fund's weak performance, attributed to low interest rates and an internationally-weak shares market.
Benefits for the elderly made up the largest spending of the social security system, corresponding to 40%. This is followed by cases of illness, which make up a quarter of spending for the 2019 period. Finally, allowances for unemployment and pre-retirement made up 6% of spending.
