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-2021-1/1669 – measures in Luxembourg
|Country||Luxembourg , applies nationwide|
|Time period||Temporary, 01 January 2021 – 30 June 2021|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Adrien Thomas (LISER)|
|Measure added||07 January 2021 (updated 18 January 2021)|
In the context of the COVID-19 pandemic, the government decided to step up support for businesses by setting up a new financial assistance for companies in the sectors most seriously affected by the pandemic and whose financial situation makes it difficult to bear the burden resulting from the increase in the minimum social salary scheduled for 1 January 2021. Legal basis: law from 19 December 2020 modifying Article L.222-9 of the Labour Code.
The aid takes the form of a single lump sum payment of up to €500 per employee, whose monthly remuneration is higher than and or identical to the minimum social wage and less than or equal to the qualified minimum social wage. The law from 19 December 2020 takes into account employees who were hired before December 31, 2020 and who were in employment between 1 January 2021 and 30 June 2021. The aid is destined to the sectors most affected by the COVID-19 pandemic, namely tourism, events, culture, hospitality, entertainment, retail as well as continuing vocational training organizations.
No information available for the moment.
Employees in standard employment
Sector specific set of companies
||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Any other form of consultation, institutionalised (as stable working groups or committees) or informal||Any other form of consultation, institutionalised (as stable working groups or committees) or informal|
Social partners' role in the implementation, monitoring and assessment phase:
The Chamber of wage earners (CSL, Chambre des salariés) and the Chamber of Commerce (Chambre de commerce) and the Chamber of Crafts (Chambre des métiers) took position on the law during its discussion phase.
The Chamber of Wage Earners supported the measure compensating the raise of the minimum wage provided it stays a one-shot measure. The Chamber of Commerce and the Chamber of Crafts criticized in a joint statement the principle of the raise of the minimum wage in a context where many companies are hard-hit by the crisis triggered by the COVID-19 pandemic and asked for compensation measures for the raise of the minimum wage that would be paid out to all companies.
This case is sector-specific (only private sector)
|Economic area||Sector (NACE level 2)|
|G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles||G47 Retail trade, except of motor vehicles and motorcycles|
|I - Accommodation And Food Service Activities||I55 Accommodation|
|I56 Food and beverage service activities|
|R - Arts, Entertainment And Recreation||R90 Creative, arts and entertainment activities|
|R93 Sports activities and amusement and recreation activities|
This case is not occupation-specific.
Eurofound (2021), Compensation for the increase in minimum wage in the context of COVID-19 , measure LU-2021-1/1669 (measures in Luxembourg), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LU-2021-1_1669.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.