European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LU-2020-15/306 – measures in Luxembourg

Establishment of an emergency fund for the self-employed

Mise en place d’un fonds d’urgence à destination des indépendants

Country Luxembourg , applies nationwide
Time period Temporary, 08 April 2020 – 25 June 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Extensions of income support to workers not covered by any kind of protection scheme
Author Patrick Thill (LISER) and Eurofound
Measure added 06 April 2020 (updated 20 July 2021)

Background information

The General Directorate for the Middle Classes introduced an emergency allowance for self-employed workers. This measure is intended to provide financial support, in the form of a certified tax-free emergency allowance, to traders, craftsmen and intellectual workers who work as self-employed persons, as well as to managing partners who hold an establishment permit.

This is an additional measure to the measure aiming at small enterprises and self-employed occupying less than ten employees.

At the moment no legal reference is available.

Content of measure

The aid takes the form of a one-off lump-sum capital grant of €2,500.

It is intended exclusively for persons: * who have the status of self-employed persons as their main occupation and; * who are affiliated as such to the social security system.

The aid cannot be cumulated with the certified emergency allowance which was introduced by Grand-Ducal regulation of 25 March 2020 in order to assist commercial or craft enterprises, whether operating as sole proprietorships or companies. To be eligible, 5 conditions must be met:

  1. the self-employed person was affiliated to the Joint Social Security Centre as such on 15 March 2020;
  2. he has the necessary authorisations and approvals for the activity he carries out as a self-employed person;
  3. the professional income of the self-employed person used as a basis for calculating the social security contributions for the year 2019 plus, where applicable, the pensions paid by a pension insurance body must not exceed the amount of 2.5 the minimum social wage (€5,354.98 per month or €64,259.70 per year);
  4. the self-employed person employs less than 10 people;
  5. the self-employed person encounters temporary financial difficulties that have a direct causal link with the COVID-19 pandemic.

Use of measure

Until 19 October 2020, 2,547 eligible applications for an emergency allowance of €2,500 for self-employed persons were processed with a total amount of €6,367,500.

New figures published by the government in May 2021 indicates that until 20 May 2021, 2,564 self-employed people had received a total amount of €6,410,000.

Target groups

Workers Businesses Citizens
Does not apply to workers Solo-self-employed
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 No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: Unknown

Involvement

No involvement.

Views and reactions

No information available.

Sources

Citation

Eurofound (2020), Establishment of an emergency fund for the self-employed, measure LU-2020-15/306 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2020-15_306.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

Article

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.