Factsheet for case LU-2021-1/1793 – 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||Patrick Thill (LISER) and Eurofound|
|Case created||22 March 2021 (updated 07 May 2021)|
After the increase by 2.8% of the social minimum wage, the government has decided to help enterprises with a compensation aid: it is intended to support businesses in sectors that are the most severely affected by the COVID-19 pandemic and for which this new burden, resulting from the increase of the social minimum wage since 1 January 2021, is more difficult to overcome due to their financial situation. The aid takes the form of a one-off capital subsidy and is tax-exempt.
Sanction: A beneficiary of aid obtained on the basis of knowingly false or incomplete information shall be liable to a prison term and a fine in addition to being required to reimburse the aid received.
The aid is only aimed at businesses that carry out one or more of the activities listed below and that are active in the following sectors, more particularly:
The business must:
The business must not have been convicted at least twice for violating the provisions prohibiting (illegal labour; or employment of non-EU illegal residents) within the last 4 years preceding the judgment of the competent court for a period of 3 years from the date of such judgment.
Not Known for the moment, but : The amount of aid is calculated by multiplying by €500 the number of employees concerned who are in employment during a period of one month between 1 January 2021 and 30 June 2021 and the aid may not exceed the amount of €200,000 per single company.
|Does not apply to workers||
Sector specific set of companies
||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Not known - giving the interviews with them it seems that this measure (that follow the increase of minimum wage) has been taken by government only.
No reaction but regrets that this aid and amount has not been discussed in tripartite meeting.
|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|
|N - Administrative And Support Service Activities||N79 Travel agency, tour operator and other reservation service and related activities|
|N82 Office administrative, office support and other business support activities|
|R - Arts, Entertainment And Recreation||R90 Creative, arts and entertainment activities|
|R91 Libraries, archives, museums and other cultural activities|
This case is not occupation-specific.
Eurofound (2021), Aid to compensate for the increase of the social minimum wage, case LU-2021-1/1793 (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.