Last update 02.01.2020
This internet page is also available in plain language. Click on the image to access the document.
All other documents in plain language are available here.
Please note that the documents in plain language are available in German only.
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
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.
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.
Applicants may not have applied previously (it must be their first application in the year).
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
- 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.
The application must include any documents that can be used as proof of the applicant's and the other household members' income, such as:
- 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 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.
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.
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.
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
Demande en obtention d’une allocation de vie chère 2020 / Antrag zur Erlangung einer Teuerungszulage 2020
Who to contact
Cost-of-living Benefit Service8-10, rue de la Fonderie
Postal address :
B.P. 2411 L-1024 Luxembourg