Employers who hire older unemployed people may, under certain conditions, recover the employer's share of paid up social security contributions for a certain period of time.
31 December 2021 inclusive
, any private-sector employer legally established in Luxembourg is entitled to the
reimbursement of the employer's share of social security contributions
when employing unemployed persons:
- who are at least 30 years of age;
- registered as unemployed job seekers at the National Employment Agency (ADEM) for at least one month.
Applications must be submitted to the National Employment Agency (Agence pour le développement de l'emploi – ADEM).
Who is concerned
The aid is available to any private-sector employer legally established in Luxembourg, and is provided for the purpose of employing an unemployed person of at least 45 years of age who is registered as an unemployed job seeker with the ADEM for at least one month.
The registration requirement, as well as the requirement of declaring the job vacancy and the requirement regarding the duration of registration do not apply if the employer is hiring a worker:
31 December 2020 inclusive
, the conditions for registration with the ADEM, the declaration of vacant position and the duration of registration do not apply in the case of hiring an
worker aged at least 30 years
- who is affected by a job protection plan; or
- whose employment contract has been terminated following a declaration of bankruptcy or judicial liquidation.
The employment contract offered to the jobseeker must be:
The employee must be occupied for at least 16 hours per week.
The aid is due:
- if the employee:
- is fit to work;
- is enrolled as an employee with the Luxembourg social security institutions;
- is not receiving an early old-age pension, an old-age pension, a tideover allowance, a professional tideover allowance or a full annuity;
- is not the holder of the business permit for the company where they are employed;
- does not work as a manager, director or deputy-director tasked with the day-to-day management of the company or not-for-profit organisation (ASBL) where they are employed;
- does not have an equity holding in the unlisted company where they are employed;
- has not worked for the company or the economic and social entity for the 5 years preceding the start of the working relationship;
- if the employee's spouse or registered civil partner:
- does not hold a majority stake in the company where the employee works;
- has not held, in the 2 years preceding the establishment of the employment contract, a majority stake in the company where the employee works.
The vacant post must have been declared to the ADEM beforehand.
The requirement to declare the vacancy does not apply if the employer is hiring a worker:
The refund of the social security contributions must be applied for within 6 months of the hire date.
How to proceed
Employers are required to file an application for aid for the re-employment of older unemployed people with the ADEM.
The request must be accompanied by a copy of the employment contract.
To obtain a refund of the contributions paid by the employer to the Joint Social Security Centre (Centre commun de la sécurité sociale – CCSS), the employer must file a declaration of claim with the ADEM every 3 months.
The declaration must be accompanied by pay slips for the months concerned.
Amount and duration of aid
The employer's share of the social security contributions is reimbursed:
- for 2 years, for unemployed persons aged 45 to 49 at the time of their employment;
- up to the age of retirement (awarding of an old-age pension) for unemployed persons aged 50 or over at the time of their employment.
If the proposed employment contract is for a fixed term (18 to 24 months), the contributions will be refunded for the contract period only.
31 December 2020 inclusive, the
reimbursement of the employer's share of social security contributions for unemployed persons between the ages of 30 and 45 may
not exceed one year.
Forms / Online services
Aide à l'embauche de chômeurs âgés et de chômeurs de longue durée - déclaration trimestrielle de créance en ligne
Demande d'aide à l’embauche de chômeurs âgés
Aide à l'embauche de chômeurs âgés - déclaration trimestrielle
Who to contact