Background information

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.

Content of measure

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.

Use of measure

No information available for the moment.

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government Company / Companies	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	Consulted	Consulted
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:

• No involvement
• Main level of involvement: Unknown

Involvement

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.

Views and reactions

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.

Sectors and occupations

This case is not occupation-specific.

Sources

• 20 November 2020: Renforcement des mesures de soutien aux entreprises touchées par la pandémie de COVID-19 (meco.gouvernement.lu)
• 20 November 2020: Aide de compensation de l’augmentation du salaire social minimum
• 02 December 2020: Avis commun de la Chambre de Commerce et de la Chambre des Métiers (www.cc.lu)
• 04 December 2020: Aide de compensation de l’augmentation du salaire social minimum