Family allowances going up January 2027: Before the tax reform

Luxembourg's family allowance increases are expected to start in 2027, a full year before the tax reform. Here's what's changing.

While most of Luxembourg's tax reform takes effect in 2028, some family benefits are coming sooner. According to Family Minister Max Hahn, family allowance increases are expected to kick in from 2027, a year ahead of the main reform.

What's planned for 2027

Child allowance (Allocation familiale):

• Children up to 11 years: +€45/month
• Children 12 and over: +€60/month

Back-to-school allowance (Allocation de rentrée scolaire):

• Children 6-11: +€60
• Children 12+: +€90
• Plus: this allowance will be indexed automatically going forward

Birth bonus (Allocation de naissance):

• New 4th tranche added: +€580.03
• Total birth bonus: €2,329.12
• Plus: birth bonuses will be indexed automatically going forward

Special supplementary allowance (for children with disabilities):

• Will be indexed automatically going forward

New targeted aid for lower-income families

A new financial aid measure for lower-income families with school-age children can provide up to €3,000 per child per year, depending on the child's age and family income.

This will be grouped with other support measures (Allocation de vie chère, energy premium, aid for elderly persons) under a single application system: apply once, and if you continue to qualify, you'll keep receiving support automatically.

CSA reform details coming January 12

Education Minister Claude Meisch will present full details of the Chèque-Service Accueil reform at a press conference on January 12. This reform is expected to save families €79 million annually in childcare costs.

We'll update you once those details are released.