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

COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case LU-2021-6/1807 – measures in Luxembourg

New minimis aid scheme for self-employed

Nouveau régime temporaire d’aide de minimis pour les travailleurs indépendants (3.000, 3.500 ou 4.000 euros)

Country Luxembourg , applies nationwide
Time period Temporary, 01 February 2021 – 15 May 2021
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Patrick Thill (LISER) and Eurofound
Case created 06 April 2021 (updated 27 May 2021)

Background information

The law of 29 January 2021 establishes a new temporary de minimis aid scheme for self-employed workers in the context of COVID-19.

The Luxembourg government has decided to reinforce the support to self-employed people affected by the financial consequences of the COVID-19 pandemic. On 8 January 2021, the Council of Government approved, on the proposal of the Minister for Small and Medium-sized Businesses, a draft law aimed at introducing a new, one-off, non-reimbursable financial aid for the self-employed.

This measure is a renewal of the measure LU-2020-19/965

Content of measure

The law provides for a one-off grant of €3,000, €3,500 or €4,000. It is given according to the income bracket in which the person falls. The subsidy is intended for people who are primarily self-employed and affiliated with the social security system.

Four conditions must be met:

  • The worker must be affiliated with the common social security centre on 31 December 2020.
  • He/she has the necessary authorisations and approvals for the activity he/she carries out as a self-employed person.
  • To be eligible for the allowance, the professional income must be at least equal to or higher than one-third of the minimum social wage. It must not exceed the minimum social wage amount of two and a half times.
  • The self-employed person is experiencing temporary financial difficulties in connection with the health crisis.

Use of measure

Not available yet.

Target groups

Workers Businesses Citizens
Self-employed
Solo-self-employed
Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

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

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: N/A

Involvement

No information.

Views and reactions

The professional chambers have given their opinion on the draft law 7745 of the law : The employers' chambers (Chamber of Commerce, Chamber of Crafts):

  • to allocate the aid to all self-employed persons in the craft sector, including those who currently have an exemption from paying social security contributions.
  • to provide for recurrent payments for the self-employed.
  • to create a legal basis for replacement income for self-employed people in the event of future crises.

The Chamber of Employees;

  • notes that the amount is very low and does not allow the self-employed to really cope with the difficulties encountered.
  • To add an additional condition to the granting of the aid, i.e. that the self-employed person should have fulfilled his social obligations with regard to the payment of social contributions in 2020.

Sources

  • 25 January 2021: New aid for self-employers, (www.chd.lu)
  • 01 February 2021: Law of January 29. 2021 concerning the in troduction of a certified emergency allowance (2021) for self-employed. (legilux.public.lu)

Citation

Eurofound (2021), New minimis aid scheme for self-employed, case LU-2021-6/1807 (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.