Upon application and in certain conditions, the National Solidarity Fund (Fonds national de solidarité – FNS) awards a specific benefit to low-income households.
To qualify for the cost-of-living benefit, the household's income may not exceed a certain threshold set by order of the Council of Government of Luxembourg. The amount of the benefit is determined on the basis of the applicant's household (whether the applicant lives alone or with several other people).
The benefit is not subject to income tax and is also exempt from social security contributions.
Who is concerned
The cost-of-living benefit may be awarded to anyone who:
- is legally resident in Luxembourg;
- is listed on the main register of the National Registry of Natural Persons (Registre national des personnes physiques);
- has legally resided in Luxembourg for a reference period of 12 continuous months;
- has only a modest annual income.
All persons living in the household when the application for the cost-of-living benefit is filed are considered applicants for the benefit for the current year.
The following individuals are not entitled to receive the cost-of-living benefit:
- persons in receipt of the State financial aid for students in higher education (Aide financière de l'Etat pour études supérieures);
- third-country nationals who entered the country as a student, pupil, intern, volunteer or au pair;
- EU nationals, or nationals of a country treated as an EU Member State (Iceland, Liechtenstein, Norway and Switzerland), who entered Luxembourg to enrol in a public or private higher educational institution, and who are principally engaged in pursuing studies or professional training
- persons who are subject to a preventive detention order or a custodial sentence, except during the period of day parole.
Applicants must satisfy the following conditions:
- hold a permit allowing them to reside in Luxembourg;
- be listed on the main register of the National Registry of Natural Persons;
- actually live at the address where they are registered as normally legally resident;
- have lived in Luxembourg for a reference period of 12 continuous months prior to the month in which they filed the application for benefits with the FNS;
- either alone or cumulatively with the people living with the applicant in the same household, and at the time of submitting the application, have an annual income below the set threshold.
Applications must be submitted to the FNS by post before 30 September of the current year. The postmark serves as proof of the date.
Applications submitted after 30 September of the current year will not be considered.
How to proceed
Filing an application
Applications are lodged using a form available from the communal administration offices or from the FNS.
When applying for the cost-of-living benefit, the applicant must declare all of their income (earned by the applicant alone or, where applicable, by the household). The application must also include documents in support of the following:
- income from regular employment or, more generally, from any professional activity;
- replacement income payable under Luxembourg or foreign law (financial benefits in case of illness, maternity, unemployment, work-related accidents/illness, parental leave allowance, etc.);
- income from movable and non-movable assets (rental payments, land rent, occupation rights, usufruct, and so on);
- pensions and annuities;
- benefits or provisions received from a public or private organisation;
- maintenance/support payments.
A bank account identification document for the main applicant must be included with the application.
Note that when applying for the cost-of-living benefit for 2018, it is not necessary to provide proof of payment of any other FNS benefits.
The applicant will then have 30 days to complete their application, failing which the benefit will be denied. The postmark serves as proof of the date.
The application for the cost-of-living benefit must be signed by all persons of legal age in the household, or by their legal representative.
Total annual income threshold
For the application to be accepted, the household's total annual income must not exceed a certain limit.
Total annual income is estimated over a reference period taken as the 12 months preceding the submission of the application.
It should be noted that this income limit is raised for each additional person living in the household.
The annual income limits are adjusted annually in line with the application score (or index) on 1 January of the current year, and with any variations in the social minimum wage.
Note, however, that a reduced benefit may be paid even if the applicant's household exceeds the monthly income limit.
Amount of the cost-of-living benefit
The amount of the benefit is determined on the basis of the applicant's household.
If the reduced benefit is paid, the amount is determined by calculating the difference between:
- the amount of the cost-of-living benefit that would normally be obtained by an applicant in a comparable situation; and
- the portion of the annual income which exceeds the total annual income threshold.
The benefit is awarded only once per calendar year. It is exempt from taxes and social security contributions.
If the applicant owes a certain sum of money to the FNS, a deduction of up to half the cost-of-living benefit may be made to recover the money owing.
Decisions handed down by the President of the FNS regarding the granting or denial of the cost-of-living benefit may be appealed.
The appeal must be filed with the Steering Committee of the FNS within 40 days of notification of the decision to grant or deny the benefit.
The decision of the Steering Committee is final.
Forms / Online services
Demande en obtention d'une allocation de vie chère 2018 / Antrag zur Erlangung einer Teuerungszulage 2018
Demande en obtention d'une allocation de vie chère 2015