Business

New changes regarding the recruitment of older unemployed people

Employers who hire unemployed older workers may, under certain conditions, receive state aid.

Moreover, in order to stimulate the labour market, until 31 December 2021 inclusive, any private-sector employer legally established in Luxembourg is entitled to the reimbursement of the employer's share of social security contributions when employing unemployed persons:

  • who are at least 30 years of age;
  • registered as unemployed jobseekers at the National Employment Agency (ADEM) for at least one month.

Thus, the age requirement for the unemployed person hired in order to be eligible for this aid is temporarily lowered to the age of 30 instead of 45.

However, the reimbursement of the employer's share of social security contributions for unemployed persons between the ages of 30 and 45 may not exceed one year.

Furthermore, the conditions for registration with the ADEM, the declaration of vacant position and the duration of registration do not apply in the case of hiring an employee aged at least 30 years and:

  • who is affected by a job protection plan; or
  • whose employment contract has been terminated following a declaration of bankruptcy or judicial liquidation.

Find out in our explanatory information page about the steps to be taken to benefit from this aid.

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