Family benefit increases announced in Luxembourg

Luxembourg has approved a significant increase in family benefits, effective January 1, aimed at combating child poverty. The family allowance will rise by 45 euros per child per month, with an additional 15-euro age-based increase for children aged 12 and older.

Back-to-school allowances will also see hikes: 60 euros for children aged 6 to 11, and 90 euros for those aged 12 and older. Furthermore, various benefits paid by the Caisse pour l’avenir des enfants—including birth allowances and special allowances for children with disabilities—will now be indexed.

According to officials, these measures represent the largest increase in family benefits in 25 years. The goal is to move closer to a reference budget required for a dignified life, estimated at 465 euros per month for children aged 6–11 and 698 euros for those over 12. To reach these minimum thresholds for all children, a future 'Complément de vie chère' is being planned for low-income households with school-aged children.