What every student should know about summer jobs and taxes

Meet Anna, she’s 17 and lives in Luxembourg. Like millions of teens this summer, she’s searching for a summer job. Anna has all sorts of questions about employment rules and taxation.

Anna and her friends are planning a summer holiday to Rome in August. To pay for the trip, she wants to find a job for July. From cafés and supermarkets to retail stores and farms, she has so many options.

But what are the rules for teenagers working in the summer? 

Is Anna old enough to find employment?

Yes she is. In Luxembourg, young people like Anna can start working when they are 15 years old.  

Based on European Union rules (Community Charter of the Fundamental Social Rights of Workers), the minimum employment age cannot be lower than 15 years. However, the age limit may be higher in EU countries where compulsory full-time schooling continues after this age.

Younger children may be employed in cultural, artistic, sports or advertising activities, as long as the competent authority has given prior authorisation. What’s more, 14-15-year-olds may be employed as part of a work/training scheme or a work-experience scheme. 

What about Anna’s safety at work?

Since Anna is wondering if she could work on a farm, this will depend on the work involved. For instance, employers in the EU cannot hire young people for work that is beyond their physical capacity or where the risk of accidents is considered to be high. Also, young people may not be employed in work involving risky processes (explosions, high-voltage electrical hazards) or exposure to harmful products like dangerous chemicals. 

How many hours can Anna work?

Teens up to the age of 18 may work eight hours per day and clock 40 hours a week. But  employment between 10pm and 6am or 11pm and 7am is not allowed. 

Also, employers are required to guarantee young people a break of at least 30 minutes if they work longer than 4.5 hours. However, if national derogations allow it, employers might not have to give these rest periods to young employees working in the following sectors: shipping or fisheries, armed forces or police, hospitals or similar establishment, agriculture, tourism industry or in the hotel, restaurant, and café sector.

How much can Anna earn?

The salary that young workers earn depends on the rules applied in each EU Member State. 

In Anna’s case, she will receive at least 80 % of the minimum social salary in Luxembourg. This is EUR 8.15 per hour or EUR 1 409 monthly. This is gross, before deductions like taxes, which the state collects to fund public services and provide goods for citizens. As such, gross is the pre-tax salary. The after-tax (net) salary is the take-home pay remaining after all deductions have been removed from a person’s salary.

Will Anna pay tax?

EU member States apply different rules as regards income taxes. In general, teens may be exempt from paying income tax if they are dependent on another tax payer (such as their parents). This is the case in Belgium and France, for example. 

In Luxembourg, a teenager’s income will not be taxed, provided they don’t earn more than EUR 14 per hour. In Anna’s case, she will only be taxed if she earns more than EUR 14 per hour. 

The employer must submit a special form declaring the personal information of the young worker (name, address, date of birth), as well as the salary.

Relax! We all pay tax.

It is never too early to talk about tax and responsibilities with teenagers. Take a look at our insightful lesson “Relax! We all pay tax” which will help him or her to understand how important ethics must be taken into consideration, even for a first summer job.  

Further reading

• Teenage workers in the EU
• EU directive on the protection of young people at work