Salary Declaration - CCSS

What is a salary declaration to the CCSS? — A salary declaration to the CCSS is the mandatory monthly transmission of gross wages paid by employers to their employees. This declaration serves as the foundation for calculating social security contributions and establishing employees' social rights, including health insurance coverage, pension entitlements, and access to cash benefits during illness or maternity leave.

Who is responsible for submitting salary declarations? — Employers in Luxembourg are legally required to submit salary declarations for all their employees. This obligation applies whether the employer handles payroll internally or outsources to a payroll service provider or accountant. The employer remains ultimately responsible for ensuring accurate and timely declarations, even when delegating this task to a third party.

What information must be included in salary declarations? — Each salary declaration must contain:

How are salary declarations submitted? — Employers can declare salaries through two methods in Luxembourg. The electronic procedure uses SECUline with the DECSAL file format, which offers automated transmission and faster processing. Alternatively, employers receive pre-printed salary lists from the CCSS at the beginning of each month, which reproduce the previous month's declarations and must be verified, corrected if necessary, and returned within the specified timeframe.

What are the deadlines for salary declarations? — Employers using paper salary lists must return them to the CCSS within ten days of receipt. For electronic declarations via SECUline, the deadline is the 24th of the month following the salary payment period. Missing these deadlines can result in quarterly fines for each undeclared salary, with the CCSS automatically notifying employers of missing declarations through the SALMAN file for SECUline users.

How does the CCSS process salary declarations? — Once the CCSS receives salary declarations, it calculates the total social security contributions for each employee based on current contribution rates. The CCSS then issues a monthly account statement to the employer, showing the total amount of social security contributions due, including both employer and employee portions. This invoice must be paid within ten days of issuance, with the employer responsible for deducting employee contributions from gross salaries and paying the combined amount.

What happens if salary declarations are not submitted? — Employers who fail to declare salaries face quarterly administrative fines for each undeclared wage. When salaries are not declared, the CCSS estimates the amount based on the most recently declared salary and validates this estimation when imposing the fine. Employees are notified of these estimated amounts and can request corrections if they disagree with the recorded salary. The employer also retains the right to correct salary information retroactively.

Why are accurate salary declarations critical? — Salary declarations directly impact employees social protection throughout their careers. These declarations determine immediate social security contribution calculations, establish entitlement to health insurance benefits and cash payments during illness, accumulate pension rights for retirement, and serve as the official record for calculating future social benefits. Inaccurate declarations can result in underpayment of benefits, pension calculation errors, or denial of social rights to employees.

Can salary declarations be corrected after submission? — Yes, employers can correct previously submitted salary declarations if errors are discovered. Corrections must be made through the same channels used for initial declarations, either via SECUline or by contacting the CCSS directly. However, periods before a certain date may become archived and unavailable for modification through electronic channels, requiring direct coordination with the CCSS for corrections to older periods.

Synonyms: Monthly wage declaration, DECSAL procedure, payroll reporting to social security, social security wage submission