Employers who hire a beneficiary of the integration allowance can request a financial contribution to their payroll expenses from the national solidarity fund (Fonds national de solidarité - FNS) with regard to said recruitment.
Employers have to submit an application for contribution, and, if the application is accepted, submit a monthly declaration of their payroll expenses.
Who is concerned
All businesses who hire a beneficiary of the integration allowance within the framework of the guaranteed minimum income (revenu minimum garanti - RMG) can apply for financial contribution to the national solidarity fund (FNS).
The business must not have applied for any other type of state aid with regard to said recruitment, and it must commit to not apply for any other type of financial aid during the period where the FNS is participating in the business' payroll expenses.
The person hired must be a beneficiary of the integration allowance as provided for by the law on the guaranteed minimum income (RMG).
The initial application for contribution must be sent one month before the intended recruitment at the latest (the reception date of the application will be considered proof).
If the application is granted, the business must submit a monthly application for contribution to payroll expenses, at the latest on the 25th of the month following the month the application relates to.
Example: contribution to the payroll expenses in May must be applied for by 25th June at the latest.
How to proceed
Initial application for contribution to payroll expenses
Employers or any other person entitled to commit the business in their name have to complete the application form for contribution to payroll expenses and submit it to the National Social Action Service (Service national d'action sociale - SNAS) at the latest one month before the intended recruitment date (the reception date of the application will be considered proof).
Several elements must be indicated on the form:
- the employer's identity, business address, VAT and registration number;
- the new employee's identity, address and national identification number (matricule - 13-digit social security number);
- for permanent or fixed-term employment contracts, the start and end (if applicable) date of the contract;
- the monthly work hours.
The following documents must be attached to the application:
- an extract from the Trade and Companies Register which clearly states the name of the person who can commit the business in his name and who signed the initial application. The date on the extract must not be more than 4 months older than the date of the intended recruitment.
- the company's business permit;
- a certificate from the Joint Social Security Centre providing proof of the employer's payment of social security contributions. The date on the certificate must not be more than 2 months older than the date of the intended recruitment;
- a certificate of conformity with regard to VAT obligations, issued by the Indirect Tax Authority (Administration de l'enregistrement et des domaines). The date on the certificate must not be more than 4 months older than the date of the intended recruitment;
- a non liability certificate (attestation de non obligation) concerning tax obligations and concerning the withholding tax on wages and salaries, issued by the Luxembourg Inland Revenue (Administration des contributions directes - ACD). The date on the certificate must not be more than 4 months older than the date of the intended recruitment.
The SNAS processes the application and, if approved, informs the employer about the monthly formalities to be completed.
Application for monthly contribution to payroll expenses
After the recruitment of the new salaried worker, employers or a person entitled to commit the business in their name have to submit an application for the reimbursement of payroll expenses every month.
In order to do so, they have to fully complete the corresponding form, and namely indicate:
- the business's identity, address and bank account;
- the new employee's identity and national identification number (matricule - 13-digit social security number);
- the type of contract and the working hours;
- the salary paid to the hired person and the employer's part of social security contributions..
The application must be accompanied by the following supporting documents:
- with regard to the first monthly application for contribution:
a copy of the employment contract;
a copy of the letter from the Employer's mutual insurance scheme which states the rate and class of contributions;
- for all monthly applications:
a copy of the salary slip;
a copy of a bank document attesting that the salary for the month in question has been transferred to the worker's bank account;
- if the work hours have changed and no longer comply with the initial contract, it is necessary to add a copy of the amendment to the contract to the monthly application submitted after the month during which the change of work hours took place.
In the case of a collective transfer of salaries, a signed declaration, attesting that the net amount corresponding to the declared gross amount (minus any attachment of earnings, where applicable) has been transferred to the worker, must be attached to the application for contribution.
The form as well as all supporting documents have to be sent at the latest by the 25th of the month following the month to which the application relates (the reception date of the application will be considered proof) to the following address:
GSL Fiduciaire s.à.r.l
7, rue Portland
If approved, the SNAS submits a declaration to thenational solidarity fund (FNS) who will proceed with the payment of the contribution to the payroll expenses.
Amount and duration of aid
The contribution to payroll expenses can not exceed the social minimum wage for unskilled workers aged 18 and over, increased by the respective employer's share of contributions.
However, the contribution to payroll expenses is limited to a maximum duration of 36 months, which can be extended to 42 months if the person hired is of the underrepresented sex in the sector of activity concerned and/or in a given profession.
Forms / Online services
Formulaire de demande mensuelle de participation aux frais de personnel