European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

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

Compensation for the increase in minimum wage in the context of COVID-19

Compensation de l’augmentation du salaire social minimum dans le contexte de la pandémie de Covid-19

Country Luxembourg , applies nationwide
Time period Temporary, 01 January 2021 – 30 June 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Adrien Thomas (LISER)
Measure added 07 January 2021 (updated 18 January 2021)

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


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

    • 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.


  • 20 November 2020: Renforcement des mesures de soutien aux entreprises touchées par la pandémie de COVID-19 (
  • 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 (
  • 04 December 2020: Aide de compensation de l’augmentation du salaire social minimum


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,


Eurofound publications based on EU PolicyWatch

30 January 2023


Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.


12 September 2022


First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.


12 September 2022


Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.


5 July 2022


Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


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