Main Contents of the Social Security Agreement Between Korea and Luxembourg
History of the Agreement with Luxembourg
- Mar. 2016 : Held the first preliminary meeting of the Agreement
- Jul. 2017 : Held the meeting for the Administrative Arrangement of the Agreement
- Mar. 2018 : Signed the Agreement
- Jul. 2018 : Held the implementation meeting of the Agreement
- Sep. 2019 : Entry into force of the Agreement
Applicable Legislation
- In relation to Korea
- - Coverage :
the National Pension Act, the Employment Insurance Act and the National Health Insurance Act, Industrial
Accident Compensation Insurance Act. - - Benefit : the National Pension Act
- - Coverage :
- In relation to Luxembourg
- - Coverage :
pension insurance in case of old-age, invalidity and survivorship, Articles 2 and 173 of the Social Security Code for
the purpose of Article 8, sickness and maternity insurance, accidents at work and occupational diseases
insurance, unemployment benefits and family benefits. - - Benefits : pension insurance in case of old-age, invalidity and survivorship, Articles 2 and 173 of the Social Security Code for the purpose of Article 8
- - Coverage :
Personal Scope of this Agreement
- This Agreement shall apply to persons who are or have been subject to the legislation of one or both Parties and to the dependants and survivors of such persons within the meaning of the applicable legislation of that Contracting Party.
- ※ For more information, you may refer to the section Agreement
Exemption from Dual Coverage
- ① In general, an employed or self-employed person who works in the territory of one Contracting Party shall, with respect to that work, be subject only to the legislation of that Contracting Party.
- ② A detached worker is exempt from being subject to the legislation of the Party which he/she is sent to for no more than 5 years if he/she is covered under the legislation of his/her home country.
- ③ A self-employed person who ordinarily resides in one contracting party is engaged in self-employed activities in the other contracting party or in both contracting parties is subject to the legislation of only the contracting party in which he/she ordinarily resides.
- ④ A person who is employed in both contracting parties or a person who is self-employed in one contracting party is employed in the other contracting party is subject to the legislation of only the contracting party in which he/she ordinarily resides.
⇒ Based on a mutual agreement between the Contracting Parties, the exemption period can be extended. ※ For more information, you may refer to the section Agreement or Guide for Exemption Application
[ Applicable Legislation under the Agreement ]
| Type | Work Status | Coverage |
|---|---|---|
| Employee | In case working in Luxembourg: | |
| - Those who are employed in Luxembourg | Luxembourg | |
| - Those who are employed in Korea but are dispatched to Luxembourg for work for no more than 5 years(Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Korea | |
| - Those who are employed in Korea but are dispatched to Luxembourg for work for more than 5 years without extension of the detached period | Luxembourg | |
| - Those who ordinarily reside in Korea as a self-employed person, but work in Luxembourg for no more than 5 years (Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Korea | |
| - Those who ordinarily reside in Korea but are employed in both countries for no more than 5 years (Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Korea | |
| In case working in Korea: | ||
| - Those who are employed in Korea | Korea | |
| - Those who are employed in Luxembourg but are dispatched to Korea for work for no more than 5 years(Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Luxembourg | |
| - Those who are employed in Luxembourg but are dispatched to Korea for work for more than 5 years without extension of the detached period | Korea | |
| - Those who ordinarily reside in Luxembourg as a self-employed person, but work in Korea for no more than 5 years (Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Luxembourg | |
| - Those who ordinarily reside in Luxembourg but are employed in both countries for no more than 5 years (Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Luxembourg | |
| Self-employed | In case running self-employed business in Luxembourg: | |
| - Those who ordinarily reside in Luxembourg as a self-employed person | Luxembourg | |
| - Those who ordinarily reside in Korea but are self-employed in Luxembourg or both countries for no more than 5 years (Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Korea | |
| - Those who ordinarily reside and are employed in Korea but are self-employed in Luxembourg for no more than 5 years (Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Korea | |
| - Those who are self-employed in Luxembourg for more than 5 years without extension of the working(detached) period | Luxembourg | |
| - In case running self-employed business in Korea: | ||
| - Those who ordinarily reside in Korea as a self-employed person | Korea | |
| - Those who ordinarily reside in Luxembourg but are self-employed in Korea or both countries for no more than 5 years (Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Luxembourg | |
| - Those who ordinarily reside and are employed in Luxembourg but are self-employed in Korea for no more than 5 years (Based on a mutual agreement between the Contracting Parties, the exemption period can be extended) | Luxembourg | |
| - Those who are self-employed in Korea for more than 5 years without extension of the working(detached) period | Korea |
Benefits under this Agreement
- Even though your periods of coverage in one country are not sufficient to qualify for pension benefits, you may be eligible for benefits after this Agreement has entered into force, thanks to the totalization of coverage periods in both countries.
- ① Korean National Pension Benefits under the Social Security Agreement
- - If you do not have enough periods of coverage to qualify for pension benefits under the Korean national pension scheme, you may be able to qualify for Korean national pension benefits by totalizing periods of coverage under the Korean and Luxembourgian pension systems. However, these periods creditable under the Luxembourgian pension system, must not coincide with those under the legislation of Korea.
- - Your benefit is calculated by dividing the Korean periods of coverage by the total periods of coverage and then multiplying by the benefits amount (theoretical benefit). The benefits amount (theoretical benefit) is calculated based on the total periods in both countries.
- ② Luxembourgian Pension Benefits under the Social Security Agreement
- - If you do not have enough periods of coverage to qualify for pension benefits under the Luxembourgian pension system, you may be able to qualify for Luxembourgian pension benefits by totalizing periods of coverage under the Korean and Luxembourgian pension systems. However, these periods creditable under the Korean national pension scheme, must not coincide with those under the legislation of Luxembourg.
- ③ A person who resides in the territory of a Party shall receive equal treatment with nationals of that Party in the application of its legislation regarding entitlement to or payment of benefits.
- ④ Korean lump-sum refunds are granted to nationals of Luxembourg based on the Agreement.
- ※ For more information, you may refer to the section either Agreement or Guide for Benefits Application.
Agencies of this Agreement
| Korea | Luxembourg |
|---|---|
| (1) National Pension Service (NPS) |
|
