Luxembourg: Aid to Offset the Increase in the Social Minimum Wage

June 22, 2021
1 min read
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This aid is intended to support companies in those sectors hit the hardest by the COVID-19 pandemic, and whose financial situation makes it more difficult to bear the new burden resulting from the increase in the social minimum wage.

It is intended only for companies in the following sectors, provided that they carry out certain activities:

  • tourism
  • events
  • the hospitality industry
  • the culture and entertainment sector
  • retail shop and similar businesses.

The aid takes the form of a one-off, tax-free capital grant. It is calculated by multiplying the number of employees in question who are active between 1 January 2021 and 30 June 2021 by €500.

The aid covers employees who meet the following criteria:

  • their monthly remuneration is greater than or equal to the minimum social wage -€2201.93- and less than or equal to the qualified minimum social wage -€2642.32.
  • they were hired before 31 December 2020
  • they were active between 1 January and 30 June 2021
  • they are assigned to an eligible activity.

Please note:

  • Companies should submit only one application for this aid.
  • Employees on short-time working contracts are excluded from the calculations for the amount of aid.
  • An application for the aid must be submitted via by 30 September 2021.



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