Background information

Based on the law of 3 April 2020 on the introduction of an aid scheme for businesses in temporary difficulty/loi du 3 avril 2020 relative à un régime d'aide en faveur des entreprises en difficulté temporaire, this legal framework aims to provide refundable aids to self-employed persons holding a business permit and established in Luxembourg in craft, commercial and industrial businesses. Self-employed activities include, for example, lawyers, doctors, artists, scientists, engineers or journalists.

Content of measure

This measure aims at all self-employed persons holding a business permit and who are established in Luxembourg. In the case of mixed activities where one activity is exercised beyond self-employment, only eligible activities are covered by this aid (agricultural activities are not covered) on condition that the activities or their costs are kept separate.

Refundable costs by the measure include both staff and rental costs for the COVID-19 epidemic period running from 15 March to 15 May 2020. Staff costs comprise both income from a professional activity and income paid by an association or company. The aid is capped at an amount equivalent to 2.5 times the social minimum wage per person concerned. Rental costs are capped at €10,000 per month per single undertaking.

The law stipulates 4 prerequisites for the aid to be applied: the self-employed business must have financial problems during the defined period; the business must fall within the professions defined by the legislation; the business must have exercised its activities already before the crisis; and there must be a causal link between the business' financial difficulties and the COVID-19 epidemic period.

Use of measure

In the context of the COVID-19 crisis, on 29 January 2021, the General Directorate for the Middle Classes introduced a third non-refundable allowance for the self-employed. By February 2021, 2,050 claims have been registered. In just eight days, more than 1,000 files have already been paid, which is equivalent to a payment of approximately €3 million.

Target groups

Workers	Businesses	Citizens
Self-employed	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

There was consultation.

Views and reactions

The measures are discussed in the tripartite Conjuncture Committee (Comité de Conjoncture).

Sources

• 09 April 2020: Guichet public (guichet.public.lu)
• 05 February 2021: Plus de 1.000 dossiers ont déjà été traités et payés dans le cadre de la troisième indemnité non remboursable en faveur des indépendant (meco.gouvernement.lu)
• 21 May 2021: Extension of the 3 aids (gouvernement.lu)