The Crew

Social aspects

Seamen’s Employment Rights are defined in the Maritime Act of 1990. Furthermore Luxembourg has ratified all major ILO Conventions (see annex: conventions)
The Law lays down the seamen’s rights and obligations, their repatriation if necessary, and compensation for sickness and injuries. Special provisions apply to the Master.
While no conditions as to the nationality of the crew members need to be fulfilled, the Master must be a national of an EU Member State. The Minister may grant derogations. Most Luxembourg flagged ships benefit from a collective bargaining agreement. A social security cover must be provided to all crew members. According to bilateral and multilateral agreements concluded by Luxembourg as well as according to EC Regulation 1408/71, three regimes exist: affiliation of the seafarer to the Luxembourg national regime, affiliation to the seafarer’s home country regime or a private cover.
Officers and ratings who serve on board a Luxembourg flagged ship are not required to hold a certificate of competency issued by the Luxembourg authorities, however they must hold valid foreign certificates of competency. The Luxembourg authorities will issue a Luxembourg endorsement of the certificates of competency in accordance with the STCW convention for the officers. All seafarers must undergo a medical check before boarding.
Evidence of the medical check must be documented prior to the issue of a seaman’s book that each seafarer has to bear. Sea service of the seafarer is documented in the seaman’s book. Entries are made by the Master.

Crew taxation

Luxembourg resident seamen are subject to the common Luxembourg taxation regime for individuals. The Luxembourg shipping company has to withhold payroll tax and social security contributions on each salary payment. Luxembourg income tax rates for individuals are progressive. They vary from 0% up to 38%. A 2,5% surcharge for the unemployment fund applies so that the maximum marginal income tax rate amounts to 38,95%. Luxembourg income tax liability is based on the individual’s personal circumstances. In this respect, individuals are divided into tax classes.
The payroll on which Luxembourg social security contributions are computed, is capped at EUR 90.205.44 for 2006.
Luxembourg law provides for a lump sum taxation of non-resident seafarers that are employed by a Luxembourg shipping company in international traffic. The Luxembourg shipping company is obliged to withhold payrole tax on each salary payment. The taxation takes the form of a final withholding tax of 10% computed on basis of 90% of the underlying wage less a lump sum allowance of EUR 1.800 per month (EUR 72 per day). No further deduction is allowed.
The withholding tax is definitive. This implies that no further tax return can or should be filed by the non-resident seaman.
Non-resident seamen residing in a country with which Luxembourg has concluded a social security agreement must be affiliated with the Luxembourg social security system. Otherwise, the Luxembourg shipping company has to evidence that the seaman is covered either by a private insurance scheme or by an equivalent social security system in his country of residence.

STCW

List of countries that are currently recognized for the issue of Luxembourg endorsements.

Austria
Australia
Belgium
Bulgaria
Canada
Croatia
Czech Republic
Cyprus
Denmark
Estonia
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Indonesia
Ireland
Italy
Ivory Coast
Latvia
Lithuania
Madagascar
Malta
Netherlands
Philippines
Poland
Portugal
Romania
Russia
Slovakia
Slovenia
Spain
Sri Lanka
Sweden
Turkey
Ukraine
United Kingdom
For countries not mentioned on the list, an endorsement request can be applied if the country is on the IMO whit list.

International maritime conventions to which Luxembourg is a party

1) Convention on the International Maritime Organization, 6 March 1948, as amended.

2) International Maritime Organisation Conventions (IMO)

- SOLAS 1974, as amended and SOLAS Protocols 1978 and 1988
- COLREG 1972
- MARPOL 73/78, and MARPOL Protocol 1978
- MARPOL Protocol 1997 (Annex VI)
- FAL 1965
- LL 1966 as amended and LL Protocol 1988
- TONNAGE 1969
- CLC 1969 and CLC Protocols 1976 and 1984
- CLC Protocol 92
- FIPOL Protocol 92
- PAL 1974 (Athens Convention) and PAL Protocols 1976 and 1990
- STCW 1978 as amended
- SAR 1979
- LDC 1972 and LDC Protocol 1996
- LLMC 76 and LLMC Protocol 96
- Bunker Convention 2001
- AFS 2001

3) Comité Maritime International conventions (CMI)