To address the challenges posed by Luxembourg’s high housing costs and to enhance the site’s appeal as a place of employment, the Commission has introduced a housing allowance for certain staff.

The welcome sweetener to new recruits applies to officials, temporary agents, and contract agents in active employment whose basic salary is below grade AD/AST 5, step 5, and who both reside and work in Luxembourg. The allowance goes from EUR  500 for the lowest grades to EUR 352 to the highest.

Married staff or those in a recognised partnership qualify only if their spouse or partner’s gross income is below the basic salary of AST 3, step 2, adjusted for the country of employment, unless they have dependent children. Where both partners are eligible, only the one with the lower salary may receive the allowance.

The payment is limited to a maximum of four years, whether consecutive or not, and is non-renewable. (Any similar housing allowance previously received from another EU body in Luxembourg will count towards this limit.) Part-time staff are entitled to the full amount.

The decision took effect on 1 January 2025, with payments (hopefully) starting in July 2025. The allowance is granted independently of any national housing subsidies; welcome news! The allowance is granted automatically; no need to apply for it.

Conscious of the problems Luxembourg is facing, TAO welcomes the measure, which will help the lives of many. However, we are concerned about certain choices. For example, you lose the allowance if you receive an invalidity allowance or are on 100% parental leave.

We are also worried about its fragility in terms of budget: the scheme will be reviewed annually, considering both available budget and staff needs, with possible adjustments being made annually.

Are you in Luxembourg and eligible for the allowance? Let us know about it and share any issues about it. If you’re in Brussels, would this allowance help you consider moving to Luxembourg? Tell TAO!

For more information, see Housing allowance – Luxembourg and FAQ Housing allowance – Luxembourg.