Applying for the cost-of-living benefit

SITUATION: CORONAVIRUS / COVID-19

Due to the current situation related to COVID-19, the reception desk at the National Solidarity Fund (FNS) is currently closed but can be contacted by telephone.

This measure has no impact either on the processing of your file or on the payment of your benefits and other allowances.

Furthermore, the amount of the cost-of-living benefit will be doubled for the year 2020.

Find out more about the online procedures and application forms for the FNS.

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Upon application and in certain conditions, the National Solidarity Fund (Fonds national de solidarité – FNS) awards a specific benefit to low-income households.

To receive the cost-of-living benefit, household income must not exceed a certain threshold. 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 exempt of income tax and social security contributions.

Who is concerned

Beneficiaries

Any person of legal age who:

  • is legally resident in Luxembourg;
  • is listed in the main register of the National Registry of Natural Persons (Registre national des personnes physiques – RNPP);
  • actually lives at the address where they are registered as normally legally resident;
  • has been living in Luxembourg continuously for 12 months before the month in which the application is submitted;
  • has a low annual income, either alone, or cumulatively with the persons belonging to their household at the time of submitting the application.
All persons belonging to the household on the date the application is filed are considered as applicants for the benefit for the current year. The applicant in whose name the application is submitted is deemed to be the main applicant.

Excluded persons

The following individuals are not entitled to receive the cost-of-living benefit:

  • persons receiving State financial aid for students in higher education (Aide financière de l'Etat pour études supérieures);
  • third-country nationals who have entered Luxembourg as students, pupils, trainees, volunteers or au pairs;
  • nationals of an EU Member State or a country treated as such (Iceland, Liechtenstein, Norway and Switzerland):
    • who have entered Luxembourg to enrol in a public or private higher education establishment;
    • who are studying or undergoing professional development training as their main occupation;
  • persons who are the subject of a preventive detention order or who have been sentenced to a term of imprisonment, except during the period of day parole, regardless of whether:
    • their sentence has been suspended; or
    • they have been granted a conditional release or been ordered to wear an electronic tag.

Prerequisites

 

Applicants may not have applied previously (it must be their first application in the year).

 

Deadlines

The National Solidarity Fund (FNS) must receive the complete application between 1 January and 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

Applicants must:

  • complete and sign the form that is available:
    • on Guichet.lu;
    • from the communal administration offices or the FNS;
  • submit the application to the FNS by post.

All persons of legal age/legal representatives who are part of the household must sign the application.

Persons who have already received the cost-of-living benefit will receive a pre-completed form from the FNS.

Supporting documents

The application must include any documents that can be used as proof of the applicant's and the other household members' income, such as:

  • payslips;
  • income tax notice of assessment;
  • legal decisions regarding child maintenance;
  • statements establishing the receipt of unemployment, illness, maternity, workplace accident and occupational illness allowances, parental leave allowance, etc.;
  • proof of receipt of rent or other payments;
  • bank account identification document for the main applicant;
  • if the application is being submitted by a legal representative: a copy of the court ruling appointing that person as legal representative.

Incomplete applications

Incomplete applications will be returned to the applicant by post.

The applicant must send the completed application to the FNS within 30 days. The postmark serves as proof of the date. If this deadline is not met, the cost-of-living benefit will be denied.

The FNS may request additional information or documents from the applicant. The applicant has 30 days to respond or submit the relevant documents.

Total annual income

Total annual income threshold

For the application to be accepted, the household's total annual income must not exceed a certain limit, which is:

  • increased for each additional person in the household;
  • adjusted annually in line with:
    • the application score (or index value) in effect on 1 January of the current year;
    • any changes in the social minimum wage.

Total annual income is estimated over a reference period taken as the 12 months preceding the month in which the application is submitted.

It should be noted that this income limit is raised for each additional person living in the household.

Income comprising the total annual income

To determine the income of the household, the following are taken into account:

  • income from any job;
  • replacement income (parental leave allowance, disability pension, etc.);
  • income from movable and immovable assets (rent, stocks, etc.);
  • pensions and annuities;
  • allowances or benefits received from a public organisation, except for:
    • family benefits;
    • back-to-school allowance;
    • maternity allowance.

Amount of the cost-of-living benefit

The amount of the benefit is determined on the basis of the applicant's household, and corresponds to:

  • EUR 1,320 for a single person;
  • EUR 1,650 for a household of 2 persons;
  • EUR 1,980 for a household of 3 persons;
  • EUR 2,310 for a household of 4 persons;
  • EUR 2,640 for a household of 5 or more persons.

Reduced cost-of-living benefit

Applicants whose income exceeds the allocation threshold may receive a reduced cost-of-living benefit.

The amount of this benefit corresponds to the difference between:

  • the amount of the cost-of-living benefit that would normally be paid to an applicant in a comparable situation;
  • the portion of the annual income which exceeds the total annual income threshold.

Allocation of the benefit

The benefit is awarded only once per year.

This limitation also applies if there is a change in the composition of the applicant's household or income situation.

It is exempt from taxes and social security contributions. The benefit is non-transferable and may not be pledged or seized.

If the applicant owes money to the FNS, sums may be withheld to repay the debt. These withheld sums may not exceed half of the cost-of-living benefit.

Review of the file

If the FNS learns that the applicant has more financial resources than the amount used to calculate the benefit, it may request that the applicant repay the excess sums disbursed.

Sanctions

If applicants submit any false or inaccurate information, they must reimburse the FNS for the sums they received.

The FNS may only claim the repayment of funds after having heard the applicant or the beneficiaries, either orally or in writing.

Appeal

Applicants may dispute the decision to grant or deny the cost-of-living benefit handed down by the President of the National Solidarity Fund. Applicants may, within the regulatory time limits, lodge:

  • an objection with the Steering Committee of the FNS; and/or
  • an appeal before the Social Security Arbitration Tribunal (Conseil arbitral de la sécurité sociale - CASS).

The grievance must be lodged within 40 days of the notification of the FNS's decision.

Forms / Online services

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Thank you for your understanding.

Demande en obtention d’une allocation de vie chère 2020 / Antrag zur Erlangung einer Teuerungszulage 2020

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 15, boulevard du Jazz L-4370 Belvaux.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Who to contact

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