On Thursday 4 September 2025, the Independent Workers' Union, Luxembourg’s association representing the self-employed, issued a statement regarding the proposed increase in social security contributions for self-employed workers.
According to the association, the government’s proposal announced on Wednesday 3 September 2025 to raise social security contributions by a total of 1.5% - to be shared equally between employees, employers and the state - would result in a 1% increase for self-employed workers, who already cover the full contribution themselves.
The Independent Workers' Union stressed that “social security contributions are already approximately 24.5%, among the highest in Europe. An additional increase would place a significant financial burden on a group that often operates with limited margins, precarious income and little capacity to absorb higher costs.”
The union added that many self-employed workers operate as sole proprietors without employees, with “very limited capacity to scale or absorb additional costs”. For these individuals, the proposed increase “is not just an abstract percentage but translates directly into reduced income, increased financial stress and even reduced viability of their professional activities”. The statement further warned that higher costs would likely be passed on to clients, “fuelling inflation and potentially triggering indexation, which in turn undermines purchasing power and national competitiveness”.
The association also expressed regret that “no consultation has taken place with self-employed workers regarding this proposal”, describing the lack of dialogue as “unacceptable given the direct and substantial consequences for a large segment of the workforce”.
It concluded that the current proposal “risks deepening existing inequalities and putting independent professional activity at risk”. While recognising the importance of a strong and sustainable social security system, the union called for immediate consultation with representatives of independent workers, a fairer distribution of funding responsibilities through alternative mechanisms, support measures for those facing financial difficulties, and a dedicated impact assessment on the self-employed sector.
“Raising social security contributions by 1% on independent workers without consultation is both inequitable and counterproductive. It risks forcing many self-employed workers into untenable situations, ultimately weakening their capacity to contribute to Luxembourg’s economy and society,” the statement concluded.
