Increase in Family Allowances in 2027

15 May 2026 by

Frederic Themans

As part of the preparations for the 2028 tax reform, Luxembourg plans to increase family allowances in 2027.

The planned increases are as follows:

Family allowances: increase of €45 to €60 per month, depending on the age of the child,
Back-to-school allowance: increase of €60 to €90,
Birth allowance: addition of a fourth installment of €580.

Each of these allowances, with the exception of the family allowance, will be automatically indexed, including the supplementary special allowance.

In addition, an extra monthly benefit will be granted, with the amount varying according to the child’s age.

This revaluation forms part of a broader set of measures introduced under the National Plan to Combat Poverty.