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COVID-19 EU PolicyWatch

Database of national-level responses

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

Factsheet for case 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
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
Case created 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, case LU-2020-15/306 (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.