Last update 18.02.2021
A person may request an allowance for the severely disabled when they have a severe disability and are not able to find professional employment suitable for their particular needs, or are unable to carry out any professional activity owing to the severity of their disability.
Who is concerned
The following may be entitled to severely disabled allowance:
- a worker recognised as disabled by the Medical Commission (Commission médicale – CM), as a result of a capacity for work reduced by at least 30 % (due to a physical, mental, sensory or psychological deficiency), and deemed able to work but who, for reasons beyond their control, do not have access to salaried employment;
- persons suffering from capacity for work reduced by at least 30 % and deemed unable to work by the CM.
To benefit from severely disabled allowance, several conditions must be met. The worker must:
- be at least 18 years old;
- exhibit at least a 30 % reduction in capacity for work because of a physical, mental, sensory or psychological deficiency; and/or because of psychosocial difficulties aggravating the deficiency (diagnosed before the age of 65);
- be completely unable to work due to their state of health;
- be resident in Luxembourg;
- be recognised as a disabled worker;
- not have access to salaried employment for reasons beyond their control;
- have income lower than the severely disabled allowance.
How to proceed
With the Medical Commission
The concerned party must contact the Secretary of the Medical Commission of the National Employment Agency (Agence pour le développement de l’emploi - ADEM) to obtain the corresponding form and for information on procedures for applying for severely disabled allowance.
The form delivered by the CM must be duly completed and returned with the supporting documentation, such as:
- a birth certificate or equivalent document establishing the applicant's age;
- a recent medical report by the general practitioner as well as a detailed medical report from the ADEM's occupational health practitioner, stating the causes and the degree of reduction of the incapacity for work;
- a certificate of nationality or equivalent;
- documents certifying the status of legal representative if the applicant needs representation in their legal actions.
To make a ruling on the applicant's case, the CM will take account of the reduction in the capacity for work and the state of health of the concerned party.
Where the aforementioned medical conditions are met, the CM will inform the concerned party by registered letter and will send their file to the National Solidarity Fund (Fonds national de solidarité - FNS), which will make a final decision on whether or not the concerned party is entitled to severely disabled allowance.
National Solidarity Fund
The aim of the National Solidarity Fund is:
- to ensure that applicant's age and residency are compliant;
- to inform the applicant of the final decision by registered mail within one month;
- to handle the payment and, if necessary, the refunding of severely disabled allowance.
When the file has been accepted, the severely disabled allowance will be paid to the beneficiary from the time the application is signed and accompanied by the required supporting documentation (the Secretary of the National Solidarity Fund will acknowledge receipt).
A special form is available on request from the Medical Commission of the ADEM.
Payment of the severely disabled allowance
The gross amount of the severely disabled allowance, paid by the FNS, is equivalent to the social inclusion income (revenu d'inclusion sociale – REVIS - formerly the guaranteed minimum income - RMG). Premiums for health insurance and long-term care insurance are deducted from this amount.
Provisions against cumulation of this allowance with earned income or replacement benefits from social security also apply:
- if the concerned party's income is less than the severely disabled allowance, the difference will be repaid to them by the National Solidarity Fund in the form of a compensatory benefit (adapted to the consumer price index and subject to the same social deductions as the severely disabled allowance);
- If the severely disabled person receives disability benefits, such benefits will be taken into consideration in calculating the severely disabled allowance (there is a 30 % exemption, which may be re-evaluated if the beneficiary's final income is less than the severely disabled allowance).
Revision of decision to grant the severely disabled allowance
Beneficiaries of the severely disabled allowance must immediately declare to the FNS any change in their situation that could affect their right to this benefit.
The FNS will regularly assess whether the conditions for granting the allowance continue to be met. If that is not the case, the entitlement to the allowance will be withdrawn.
If the elements used to calculate the allowance amount have changed or it has been granted in error, the allowance may be increased, reduced or discontinued.
Repayment of severely disabled allowance
In the event of the beneficiary's death
In the event of the beneficiary's death, the FNS can, in some cases, demand repayment of the severely disabled allowance from the beneficiary's heirs, up to a maximum equalling the whole of the inherited estate.
In the case of an error benefiting the claimant
When a beneficiary had additional resources at their disposal, beyond what they would normally have been eligible to receive, the excess amounts paid may be recovered at the expense of the beneficiary or their successors.
In the case of an error on the part of the beneficiary
The allowance must be repaid if the beneficiary provided inaccurate information in order to receive it. Amounts unduly paid must be refunded by the beneficiary or their agents, otherwise legal action may result. Such amounts may be deducted from the allowance or from remaining arrears due to the beneficiary.
The FNS can only make a decision concerning the refund after hearing from the concerned party or their agents, either orally or in writing. In all cases, due reasons must be given for that decision.