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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-2020-19/965 Updated – measures in Luxembourg

Implementation of new emergency aid for independent workers

Mise en place d'une nouvelle aide d'urgence à destination des travailleurs indépendants

Country Luxembourg , applies nationwide
Time period Temporary, 06 May 2020 – 15 May 2021
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 10 July 2020 (updated 21 July 2021)

Background information

In the context of the COVID-19 crisis, the General Directorate for the Middle Classes has set up a new emergency aid for self-employed workers.

The aid has been implemented by the Grand-Ducal Regulation of 6 May 2020 on the introduction of a new certified emergency allowance for self-employed workers (Règlement grand-ducal du 6 mai 2020 ayant pour objet la mise en place d’une nouvelle indemnité d’urgence certifiée en faveur des travailleurs indépendants dans le cadre de la pandémie COVID-19, Mémorial A n° 363 du 06 mai 2020), which is based on the lLaw of 24 March 2020 extending the state of crisis declared by the Grand-Ducal regulation of 18 March 2020 introducing a series of measures as part of the fight against COVID-19.

Content of measure

The new emergency aid offers self-employed workers a single lump-sum capital grant, the amount of which varies according to the applicant's income bracket.

The persons must be self-employed as a main occupation and affiliated to social security since 15 March 2020 and the temporary financial difficulties must be linked to the COVID-19 crisis.

Other conditions are:

  • either be self-employed whose activity is linked to the Chamber of Maritime Affairs or the Chamber of Commerce;
  • or have more than 25% of shares in a company;
  • or be a director of a company;
  • or carry on an activity in the field of insurance.

The aid can be cumulated with the other aid relating to the COVID-19 crisis.

Updates

The following updates to this measure have been made after it came into effect.

01 February 2021

In the context of the COVID-19 crisis, the Directorate General for the Middle Classes has introduced a new certified emergency allowance (2021) for the self-employed.

The aid takes the form of a one-off lump-sum capital grant, the amount of which varies (€3,000, €3,500 and €4,000 depending on the income bracket in which the person falls. It is intended exclusively for people who:

  • have the status of self-employed person as their main occupation;
  • are affiliated as such to the social security system.

The application for the benefit must be submitted by 15 May 2021 at the latest.

Use of measure

Until 19 October 2020, 4,182 applications have been processed and are eligible for additional direct support of up to €4,000 for self-employed persons depending on their income. The total amount used was at that date €13,513,000.

The government published new data on the use of the use of this measure on 20 May 2021. Until 20 May 2021 4.196 self-employed companies received €13,358,000.

Target groups

Workers Businesses Citizens
Self-employed
Applies to all 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 Unknown Unknown
Form Not applicable Not applicable

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

  • Unknown
  • Main level of involvement: N/A

Involvement

No information.

Views and reactions

No information.

Sources

Citation

Eurofound (2020), Implementation of new emergency aid for independent workers, case LU-2020-19/965 (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.