Factsheet for measure
LU-2022-32/2260
–
Updated
– measures in Luxembourg
Tripartite agreement on adjustment of the rent subsidy
Subvention loyer
Background information
In order to alleviate the pressure of rising prices on the purchasing power of vulnerable households, the government, the Union des Entreprises Luxembourgeoises (UEL) and the trade unions Confédération Générale de la Fonction Publique (CGFP) and Confédération luxembourgeoise des syndicats chrétiens (LCGB) signed an agreement. The agreement provides for three measures supporting both tenants and owners. These measures were decided in the framework of the Tripartite meeting held on 22-30 March 2022.
Content of measure
In the framework of the tripartite agreement, the rent subsidy will be adjusted on 1 August 2022, so that all tenants up to the income level of decile 5, the median income level, will be eligible. This change increases the number of eligible households.
Furthermore, the monthly amount of rental assistance will increase for all recipients by an average of 50%. This means that a single person with a monthly income of €2,200 who is paying €800 per month on rent will receive a subsidy of €134. A large family will receive up to €400 per month in rental assistance, compared to €294 previously.
The adjustment will be made automatically for all households currently receiving rent subsidy and will be applicable to all future applications.
To receive the subsidy, the applicant cannot be the owner, co-owner or usufructury of another dwelling. The income must be regular for at least three months and cannot exceed a certain threshold. The monthly rent must exceed 25% of the applicant's net income.
Moreover, the rental must be the principal residence, whether it is an apartment or a house. The property must also meet current safety standards. It cannot be rented by an ascendant or descendant of the applicant, nor can it be rented by a public organisation.
Updates
The following updates to this measure have been made after it came into effect.
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15 July 2022
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Rent subsidy increase. The changes to the rent subsidy will apply automatically from 1 August 2022. The new maximum amounts per month will depend on the composition of the household, ranging from €200 for a single person to €400 for a person with three children.
This decision was taken at a meeting of the Tripartite Coordination Committee
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Use of measure
Currently, no data is available on the amount of grants awarded.
Contents
Target groups
Actors and funding
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Actors
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Funding
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National government
Trade unions
Employers' organisations
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Consultation through tripartite or bipartite social dialogue bodies
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Consultation through tripartite or bipartite social dialogue bodies
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Unknown
Involvement
This decision was taken in the framework of the Tripartite meeting held on 22-30 March 2022. The resulting draft law was approved by the Government Council on 7 April 2022.
Views and reactions
Approval by two trade unions: Confédération luxembourgeoise des syndicats chrétiens (LCGB) and Confédération Générale de la Fonction Publique (CGFP), as well as by the Union des Entreprises Luxembourgeoises (UEL).
Sources
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31 March 2022: Tripartite agreement
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22 July 2022: Law - Rent subsidy increas
(www.stradalex.lu)
