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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-2020-17/989 – measures in Luxembourg

Aid of €5,000 for micro-companies

Aide de 5000 euros pour les micro-entreprises (moins de 10 salariés)

Country Luxembourg , applies nationwide
Time period Temporary, 24 April 2020 – 25 June 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Patrick Thill (LISER) and Eurofound
Measure added 13 July 2020 (updated 21 July 2021)

Background information

The grant was created by the General Directorate for Small and Medium-Sized Enterprises within the Ministry of the Economy to help companies during the COVID-19 crisis. It is based on the following legal background:

  • Grand-ducal regulation concerning having as its object the introduction of a certified additional emergency allowance in favour of certain micro-enterprises in the context of the pandemic COVID-19 (Règlement grand-ducal du 24 avril 2020 ayant pour objet la mise en place d’une indemnité d’urgence certifiée complémentaire en faveur de certaines micro-entreprises dans le cadre de la pandémie COVID-19, Mémorial A 329 du 24/04/2020).
  • Law of 20 of June 2020 on the establishment of a temporary regime of aids (Loi du 20 juin 2020 ayant pour objet la mise en place d’un régime temporaire d’aide de minimis en faveur de certaines entreprises commerciales et artisanales dans le cadre de la pandémie du COVID-19, Mémorial A 534 du 25/06/2020).

Content of measure

The following are the main conditions to benefit from a grant:


  • Those whose closure was imposed by the grand-ducal regulation of 18 March 2020 and which have not been authorised to resume their activities.
  • Those who had to close and were able to reopen after the end of the crisis state but have lost at least 50% of their turnover within the period of 15 April and 25 May 2020.
  • Those who did not have to close but who suffered a significant loss of turnover as a result of the COVID-19 crisis of 50% of their turnover within the period of 15 April and 25 May 2020.

Other conditions are:

  • Employing less than ten wage earners.
  • Being registered as an employer at the social security.
  • Have a turnover between €15,000 and €2.000.000.
  • In order to be eligible, the company must have achieved a minimum annual turnover of €15,000.

Use of measure

Until 19 October 2020, 7,301 eligible applications were processed for an emergency allowance of €5,000 granted to micro-enterprises.

The government published new data on the use of this measure on 20 May 2021. Until then, 7,349 micro-enterprises received €36,745,000 of allowances.

Target groups

Workers Businesses Citizens
Does not apply to workers One person or microenterprises
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: N/A


Not available.

Views and reactions

Not available.



Eurofound (2020), Aid of €5,000 for micro-companies, measure LU-2020-17/989 (measures in Luxembourg), EU PolicyWatch, Dublin,


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