The LCGB trade union has reported that it has a solution in sight for the adaptation of family benefits in Luxembourg.

On Tuesday 1 March the trade uniond held a conference to discuss the implementation of the new model that has been proposed by the Luxembourg government; this is to be reviewed every two years, as had been requested by the LCGB.

The changes to the way family benefits are managed will be applied as soon as they are enforced which could happen as early as 1 January 2017.

The adjustments cover all family benefits including:

• Financial benefits for family allowances: age increase, additional special allowance for children with disabilities, yearly school allowance, etc.

• Benefits in kind (service vouchers or similar future benefits).

Based on a report submitted by the government in the Chambre des Deputés (Parliament), the adaptations to these benefits are to be calculated on the average hourly wage and the different benefits divided by the household's number of children. Children are going to be categorised into three groups: from 0 to 6 years, from 6 to 12 years and 12 years and above.

The trade unions expect to be consulted in this legal process and they may in particular decide to promote the upgrading of one or more benefits. The adaptation will then be implemented through separate parliamentary bills.

A series of technical details inherent to the operation of the calculation method and its practical application has yet to be clarified through a simulation of the adaptive mechanism.