Full unemployment benefits as a salaried worker
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In the event of involuntary termination of employment, you can receive full unemployment benefits if you meet certain conditions. The benefits are meant to compensate you for the loss of your main or sole source of income.
Before applying for full unemployment benefits, you must first register as a jobseeker with the National Employment Agency (Agence pour le développement de l’emploi – ADEM).
The social security contributions and taxes that are generally deducted from your salary will be deducted from the amount of your benefits. The Unemployment Fund (Fonds pour l’emploi):
- will replace your former employer; and
- will pay the employer's share of the required contributions.
Who is concerned
Any salaried worker aged 16 to 64 years old who:
- resides in Luxembourg;
- is a jobseeker who has lost their job involuntarily, which excludes the following cases:
- employment contracts terminated by mutual agreement;
- resignations without good reason;
- dismissals for serious misconduct;
- is fit for work, available on the job market, and ready to accept any suitable job (as determined based on criteria of pay, physical and mental fitness, daily commute, family situation, working conditions etc.).
Salaried workers who are temporarily incapacitated for work – i.e. on sick leave – when the employment relationship is terminated will not receive unemployment benefits immediately. They must be fit to work before they can start receiving benefits.
Prerequisites
Registering as a jobseeker
Before applying for full unemployment benefits, you must first register as a jobseeker with the National Employment Agency (ADEM).
General terms and conditions
You will only be entitled to unemployment benefits if you satisfied the following conditions before registering as a jobseeker:
- you had one or more employment contracts over at least 182 days in the 12 months (or more, depending on the case) preceding the loss of your job;
- if you had only one employment contract: you worked for at least 16 hours a week in a full-time or part-time job with the same employer;
- if you had more than one employment contracts:
- you lost, within a period of one month, one or more jobs totalling at least 16 hours a week; and
- your remaining income was less than 150 % of the social minimum wage for unskilled workers;
- if an external reclassification decision was made:
- the contract was automatically terminated;
- the 1st reclassification decision pertained to one or more jobs totalling at least 16 hours per week; and
- your remaining income was less than 150% of the social minimum wage for unskilled workers;
- you held none of the following positions in a business:
- manager;
- director;
- managing director;
- chief executive;
- you did not have a business permit.
If you held one of the positions mentioned above, or if you had a business permit, you can still qualify for full unemployment benefits. In that case, you must specify in your application that you are entitled to unemployment benefits pursuant to Article L.521-18 of the Labour Code (ancillary work or other income). If the income from the position you held exceeded the applicable threshold, the amount will be deducted from your unemployment benefits.
Conditions in case of dismissal for serious misconduct or resignation
If you were dismissed for serious misconduct, of if you resigned, you will not be entitled to full unemployment benefits. However, you may apply to receive unemployment benefits temporarily by filing a summary proceeding with the competent labour tribunal, in case of:
- dismissal for serious misconduct;
- dismissal for sexual harassment;
- resignation for serious reasons, further to acts or deeds on the part of the employer.
In those cases, full unemployment benefits will be granted for 182 days only. This period may be extended, but may not exceed 364 days in total.
You can apply for temporary benefits only if you have already filed a claim for unfair dismissal with the competent labour tribunal and petitioned the tribunal to have the case heard on its merits.
If your petition is rejected, you will have to reimburse the Employment Fund the full amount of the unemployment benefits you received.
If you abandon or withdraw the case voluntarily during the proceedings, you will be required to reimburse any amounts you received. If the case is withdrawn further to an agreement between you and your former employer, both you and your former employer will be required to reimburse the Employment Fund 50% of the benefits received.
Deadlines
Your application must be filed within four (4) weeks of the date on which you lost your job.
How to proceed
Applying for full unemployment benefits
Your application must be filed through your MyGuichet.lu private eSpace. As this procedure requires authentication, you must possess an authentication product, i.e.:
- a LuxTrust product; or
- a Luxembourg electronic identity card (eID); or
- an eIDAS-compliant means of authentication issued in another European country.
The procedure on MyGuichet.lu is only accessible to users who are registered as jobseekers with the National Employment Agency (ADEM).
If you need assistance, you can call ADEM's Contact Center on (+352) 247 88 888, Monday to Friday, from 8.00 to 12.30, and from 13.00 to 17.00.
Documents to be submitted with the application
You must also enclose the following documents with your application:
- a bank account identification document, showing:
- your bank account number in IBAN format;
- your bank's name and BIC/SWIFT code;
- if you have dependent children:
- proof that you receive a family allowance (allocations familiales) e.g. a copy of a notice of payment, or a certificate, issued by the Children's Future Fund (Caisse pour l’avenir des enfants); or
- a copy of the document confirming the approval of State Financial Aid for Higher Education (Aide financière de l’État pour études supérieures – AideFi);
- a copy of your most recent employment contract;
- if applicable, a copy of the letter of dismissal, resignation, or termination of employment by mutual agreement.
Amount of benefits
Calculation
The amount of the full unemployment benefits is:
- calculated based on the gross salary you received in the three (3) months preceding the loss of your job (discounting a thirteenth-month bonus , if any);
- adjusted in line with variations in the cost of living (index).
Under certain conditions, the 3-month period may be extended to up to 6 months.
Sick pay, as well as regular bonuses and pay supplements, are also included when calculating unemployment benefits. However, the following are not included:
- compensation for overtime work;
- gratuities;
- allowances for incidental expenses.
All income from any paid professional activities, whether regular or occasional, must be reported to the ADEM since, under certain conditions, such income may be compatible with the unemployment benefits.
Full unemployment benefits amount to:
- 80% of your previous gross salary; or
- 85% if you have one or more children for whom you receive a tax abatement.
If you are divorced, you will not be entitled to the 85-percent rate, even if:
- you have custody of a child;
- you have parental authority;
- you pay child support.
Caps
Full unemployment benefits:
- are capped; and
- may not exceed 2.5 times the social minimum wage.
The cap is lowered as the benefits are paid out over time. Thus, if you are unemployed for more than 182 days in a year, the cap on your unemployment benefits is lowered to two (2) times the social minimum wage.
Duration
In principle, unemployment benefits are paid for the same length of time (in whole months) that you worked during the reference period for calculating the amount.
For example: if you worked for 8 months in the 12 months prior to registering with the ADEM, you will receive unemployment benefits for 8 months.
Working days that exceed a month are counted as a whole month.
For example: you have worked for 184 days. As 6 months of work equates to 182 days, the two additional working days (184-182 = 2 days) are counted as one whole month. This means that they will be considered as a 7th month for the purpose of benefit payments.
In general, unemployment benefits are paid for no more than 12 months. However, extensions can be granted in the following cases:
| Age | Condition | Extension |
|---|---|---|
| 16–49 years old | degree of invalidity: 30% | 6 months |
| 50–54 years old | degree of invalidity: 15% | 6 months |
| ≥ 55 years old | not applicable | 6 months |
| 16–64 years old | beneficiary of a measure to promote employment | Up to 6 months |
| ≥ 50 years old | affiliated with the social security system for 20 years | 6 months |
| ≥ 50 years old | affiliated with the social security system for 25 years | 9 months |
| ≥ 50 years old | affiliated with the social security system for 30 years | 12 months |
Termination and suspension
- Termination
- Suspension
Unemployment benefits will end:
- when the set limits for the duration of payment are reached;
- when one or more conditions for granting the benefits are no longer fulfilled;
- when you reach the age of 65;
- if you refuse, without good reason:
- a suitable job;
- to take part in internship programmes, training or community work proposed by the ADEM.
Unemployment benefits will be suspended if:
- you are receiving an occupational bridging allowance or a full pension; or
- your application to be exempted from having to report to the ADEM for up to 25 working days has been granted.
In the event of illness or maternity during the benefits entitlement period, if the illness/maternity is not covered by the National Health Fund (Caisse nationale de santé – CNS), your entitlement to full unemployment benefits will be maintained.
Obligations
To receive full unemployment benefits, you must:
- report to the ADEM on the days and at the times specified by your ADEM guidance counsellor;
- immediately inform your guidance counsellor if your personal circumstances change.
Changes in personal circumstances during the period of unemployment
You must inform your ADEM guidance counsellor if your personal circumstances change. Changes in personal circumstances include:
- incapacity for work (illness);
- trips abroad;
- absences for personal reasons;
- undergoing training;
- part-time or temporary jobs.
You must comply with the following requirements:
- incapacity for work (illness): provide a certificate of incapacity;
- trips abroad or absences for personal reasons: before leaving, apply for and obtain approval to be exempted from your obligations to the ADEM (no more than 25 working days a year);
- undergoing training: provide a certificate of enrolment for the training in question;
- part-time or temporary jobs: provide a copy of the employment contract.
Penalties
If you fail to report to the ADEM without providing a legitimate reason, penalties may be imposed. Penalties include:
- loss of your entitlement to full unemployment benefits for seven (7) to 30 days for repeat occurrences;
- being struck off the list of beneficiaries of unemployment benefits.
You may be required to reimburse the ADEM the sums you have received, if you are found to have:
- provided false information; or
- filed false declarations in order to receive full unemployment benefits.
Online services and forms
Online services
My data
Who to contact
National Employment Agency (ADEM) Contact Centre for job seekers
- Address:
- Luxembourg
- Phone:
- (+352) 247 88 888
Closed ⋅ Opens Monday at 8.00
- Saturday:
- Closed
- Sunday:
- Closed
- Monday:
- 8.00 to 12.30 , 13.00 to 17.00
- Tuesday:
- 8.00 to 12.30 , 13.00 to 17.00
- Wednesday:
- 8.00 to 12.30 , 13.00 to 17.00
- Thursday:
- 8.00 to 12.30 , 13.00 to 17.00
- Friday:
- 8.00 to 12.30 , 13.00 to 17.00
Related procedures and links
Procedures
Links
Further information
on the website of the National Employment Agency (ADEM)
