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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-2020-27/1121 Updated – measures in Luxembourg

Negotiations by the Tripartite coordination committee on the COVID-19 crisis

Négociation du Comité de coordination tripartite au sujet de la crise Covid-19

Country Luxembourg , applies nationwide
Time period Open ended, started on 03 July 2020
Context COVID-19, War in Ukraine
Type Tripartite agreements
Category Promoting the economic, labour market and social recovery into a green future
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Patrick Thill (LISER) and Eurofound
Measure added 14 September 2020 (updated 19 June 2023)

Background information

In order to address the COVID-19 crisis and cushion effects on employment, the government has decided to launch tripartite negotiations with the employers' associations and the representative trade unions. The first meeting in July focused on a study of crisis' effects on employment and how to maintain employees in employment.

Content of measure

The representative trade unions OGBL, LCGB and CGFP, the employers' association UEL and the government agreed upon 10 measures that will be gradually implemented or further pursued in Luxembourg.

The following measures were identified as vital during the tripartite negotiations:

  • Support for the re-employment of older unemployed people
  • The mobilisation of training apprenticeships ('stage de professionalisation')
  • Contract to return to job (contrat CRE)
  • Apprenticeships
  • Mobilisation of grants to start a business
  • Government recruitments
  • Compensated temporary occupation (OTI)
  • Creation of a task-force to discuss skills and competences developments
  • Enhancing ADEM's monitoring committee to strengthen the placement procedure and address skills mismatches
  • Creation of an investment "task force"


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

07 March 2023

A new tripartite meeting proposed an agreement to curb the effects of the war in Ukraine on the lives of people in Luxembourg. Signed on 7 March 2023, this agreement extends the previous agreement signed in 2022. It supports households and businesses by taking strong and lasting action against inflation by boosting purchasing power and providing businesses with wage predictability.

In response to the struggling economy and persistent inflation, the UEL and its members welcome the tripartite agreement signed by the government and the social partners on 7 March. This agreement offers prolonged action on inflation, predictability for companies and an increase in net pay for employees. It confirms the government's commitment to cover a possible 3rd indexation in 2023 after those of February and April (postponed from July 2022). This compensation, initially scheduled to run until the end of 2023, was extended to 1 February 2024.

The main decisions concern:

  • a capping of energy prices until the end of 2023
  • the indexation of salaries with a 9-month gap to maintain economic activity
  • the indexation of the tax scale to inflation by 2.5 index brackets from 2024 (for 2023, a tax credit will be introduced - retroactive to 1 January - to compensate for the equivalent of two indexation bands in the scale)
  • the extension of aid to businesses particularly affected by the rise in energy prices until 31 December 2023 or more in line with the European scheme

Use of measure

Not applicable.


  • Employment retention
  • Other topics
  • Training and employability

Target groups

Workers Businesses Citizens
Applies to all workers Applies to all businesses Older citizens
Youth (18-25)

Actors and funding

Actors Funding
National government
Trade unions
Employers' organisations
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
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:

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level


In addition to a series of working groups prior to the main tripartite negotiations, the social partners were fully involved and agreed upon the measures.

Views and reactions

Social partners agreed upon the proposed measures during the negotiations.



Eurofound (2020), Negotiations by the Tripartite coordination committee on the COVID-19 crisis, measure LU-2020-27/1121 (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.