Factsheet for case LU-2020-12/430 – Updated – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Temporary, 15 March 2020 – 30 June 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Patrick Thill (LISER) and Eurofound|
|Case created||09 April 2020 (updated 10 February 2021)|
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.
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.
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.
||Does not apply to businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|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:
There was consultation.
The measures are discussed in the tripartite Conjuncture Committee (Comité de Conjoncture).
Eurofound (2020), Financial aid for self-employed to compensate for temporary financial difficulties caused by the COVID-19 crisis, case LU-2020-12/430 (measures in Luxembourg), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.