Payroll Giving enables employees in Luxembourg to round down their salaries and donate the spare change to global social causes—a simple, impactful model gaining traction among purpose-driven companies. Hugo Jouve explains.
Launched by not-for-profit PADEM, Payroll Giving lets employees donate spare cents or more from their paychecks to support social impact projects. Inspired by similar UK and Australian programmes, widely adopted by public and private employers, the idea fits PADEM’s vision of accessible, citizen-led solidarity, explains Hugo Jouve, who manages the initiative.
Payroll Giving officially launched in 2017. Where did the idea come from?
Payroll Giving, or “rounding down your salary,” originated in English-speaking countries. It wasn’t invented by PADEM, but in 2015, my predecessor in charge of fundraising noticed that no such structured system existed in Luxembourg. He decided to introduce the concept here, and it took two more years—especially on the technical side—to bring it to life. The idea is simple: “small streams make big rivers.” Employees can voluntarily round their salaries down to the nearest euro and donate the leftover cents to a charitable cause. In reality, many give even more—on average €5 per month.
Initially, only PADEM projects could be supported. You later opened it up to other NGOs. Why?
That’s right. In 2019, we opened the programme to a group of NGOs, which significantly increased both its visibility and impact. Today, the Payroll Giving consortium includes eight organisations: PADEM, Aide à l’Enfance de l’Inde et du Népal, Unity Foundation, Frères des Hommes, Partage.lu, Îles de Paix, SOS Faim, and Médecins Sans Frontières Luxembourg.
How can a company join the initiative?
It’s very simple. Companies can contact us via our website or email. If they already have a preferred NGO in mind, we facilitate the connection. If not, we present the consortium’s organisations to help them select one based on their values, corporate culture, or employee preferences. The NGO then proposes one or more projects.
At PADEM, we usually present four or five during in-person sessions with the staff. Employees take time to discuss internally, and the company gets back to us with their choice. One of our flagship projects—fighting female genital mutilation in Senegal—often garners strong support. We recommend companies support one project per year to ensure clear follow-up and detailed reporting. This pace also helps keep the momentum and encourages new employees to get involved year after year.
Is Payroll Giving difficult to set up from a technical point of view?
Not at all. We start by checking whether the company’s payroll software is compatible—tools like APSAL from Proximus Telindus Tango and KeyPaye from Partenaires Sociaux work seamlessly. Implementation is quick and easy—like adding a browser extension. You select the participating employees, their donation amount, and the chosen NGO. Everything else is automated. If the software isn’t compatible, we adapt to the company’s system. It might take a bit more time, but we always aim to find a solution.
Beyond doing good, what are the benefits for companies?
There are many. Some companies see Payroll Giving as a CSR tool, others use it as a team-building strategy by uniting staff around a meaningful cause. It creates measurable social impact while fostering employee engagement. It’s cost-free for companies, fully automated, and employees can adjust or stop donations anytime. Donations are tax-deductible in Luxembourg starting from €120 per year, which adds an incentive.
With some long-term partners, we go further and offer skills-based volunteering, enabling employees to share their expertise with NGOs. We also organise meetings with local partners, whether in Luxembourg or during specific events, to humanise the initiative and show real-world impact. We even offer awareness workshops and development education, which complement Payroll Giving for companies seeking a broader CSR strategy.
Do you have a clear view of the programme’s real-world impact?
Absolutely. Impact is central. In the past two years, we’ve strengthened our reporting policy. Every company receives a detailed impact report: what projects were funded, how many people benefited, and what tangible results were achieved. These presentations often convince new employees to join the initiative. And here’s another strong incentive: for each euro raised, Luxembourg’s Ministry of Foreign Affairs may co-finance up to €4 for projects in the least developed countries. That’s a powerful multiplier effect. Companies can also choose to do match giving by contributing an amount equal to all the donations made by their employees, for example.
What results have you seen so far?
Around twenty companies currently participate via consortium NGOs. Small businesses with about fifteen employees often reach close to 100% participation. In medium-sized companies, participation rates hover around 50%, while in large firms—such as Société Générale—they reach about one-third. For example, in 2024, nine companies supported PADEM through Payroll Giving, collecting a total of €16,500. Of course, results vary depending on the size and engagement level of each organisation.
About PADEM
Founded in 2002 and based in Dudelange, PADEM is a recognised NGO by Luxembourg’s Ministry of Foreign Affairs and listed as a Public Interest Organisation by the French Ministry of Economy and Finance. PADEM works to improve living conditions for children and their families across the globe, in sectors such as housing, education, economic development, food security, health, and prevention of gender-based violence. The NGO focuses on long-term partnerships with local civil society actors and consistently defends the fundamental rights of its beneficiaries, always in respect of local cultures. Today, PADEM runs 27 projects in over a dozen countries.
This article was published in the 7th edition of Forbes Luxembourg.
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