On Wednesday 8 March 2023, Luxembourg's Ministry of Justice announced that there will be changes to the number of transferable and seizable instalments on earned income, pensions and unearned income from 1 April 2023 when the Grand Ducal Regulation of 7 March 2023 will come into force repealing the current regulation of 27 September 2016.
This modification to seizable and transferable amounts is an attempt to take into account the increase in the index used in the mobile salary grid. The changes will affect any legal seizures forced upon salaries, pensions or private income, including seizures carried out before the specified date.
As a result, there will be a recalculation of all salary seizure procedures which allow lenders to block the sum owed by an employee concerning debt collection. This also applies to people who have authorised such assignments in order to recover debt based on an agreement between the parties involved. Therefore, the new regulations apply to employees who authorise their to assign a part of their salary to a third person.
It is important to note that the current Grand Ducal regulation of 27 September 2016 fixing the rates of assignability and seizability of labour remuneration, pensions and annuities, remains applicable until 31 March 2023.
For further details, see www.guichet.lu.
