This compensation aid for the increase of the social minimum wage is intended to support businesses active in sectors that are the most severely affected by the COVID-19 pandemic and for which this new burden, resulting from the increase of the social minimum wage since 1 January 2021, is more difficult to overcome due to their financial situation.
This aid is a single premium granted for a single month (at the applicant's choice) between January and June 2021.
Who is concerned
The aid is only aimed at businesses that carry out one or more of the activities listed below and that are active in the following sectors, more particularly:
- businesses in the tourism sector;
- businesses in the events sector;
- the HORECA sector;
- businesses in the culture and entertainment sector;
- companies operating a retail trade in shops and similar businesses.
Companies that were not set up and carrying out their business activity before 31 December 2020 are not eligible.
The aid is aimed at businesses carrying out at least one of the following activities:
- off-site catering activities;
- artistic agencies (career planning, contract negotiation and project management in relation to artistic activities);
- travel agencies and tour operators;
- event agencies;
- indoor play areas;
- fitness and sport studios, and dance schools;
- fairground traders;
- wholesale food and drink outlets;
- construction of exhibition stands;
- drinking establishments, with or without entertainment;
- restaurants and catering establishments;
- operation of event venues and convention, congress and exhibition centres;
- hotels and camp sites;
- rental of furniture, toilet facilities, and kitchen and table equipment for events;
- advertising items, posters and distribution of advertising for events;
- amusement parks;
- animal boarding facilities;
- photography, printing and graphic art for events;
- producers and organisers of live shows / concerts / congresses (including presenters and tour organisers);
- audiovisual productions (video, sound and light productions);
- cinematographic screenings;
- scenographic art;
- signage, printing and large-format;
- studios and sound production;
- taxis and other overland passenger transport services.
The aid is also aimed at businesses active in the in-store retail trade.
Provided the business has a retail trade type commercial area, all activities assimilated to the following retail trade businesses are also eligible:
- shoemaker, shoemender;
- interior designer;
- watch- and clockmaker;
- manicurist / make-up artist;
- dry cleaning and laundry services;
- orthopaedist / surgical truss maker;
- dressmaker (alterer);
- grooming salon for cats and dogs;
- catering services and delicatessen.
Employees who are on short-time work during the month for which aid is requested (even for a single day in the month) are not "on the job" and will not be taken into account for the calculation of the number of eligible employees. The same applies to employees who are not "in employment" if their employment contract is suspended (such as employees on parental leave).
Employees who are on recreational leave or sick leave are considered to be "on the job" and will be counted in the calculation of the number of eligible employees.
The business must:
- have been in activity before 31 December 2020;
- hold a valid business permit (autorisation d'établissement) for said activity (issued by the General Directorate for Small and Medium-Sized Enterprises at the Ministry of the Economy);
- be properly registered with the Joint Social Security Centre (CCSS);
- be experiencing temporary financial difficulties that have a direct causal link with the COVID-19 pandemic.
The business must not have been convicted at least twice for violating the provisions prohibiting:
- illegal labour ; or
- employment of non-EU illegal residents
within the last 4 years preceding the judgment of the competent court for a period of 3 years from the date of such judgment.
Applications for aid to compensate the increase of the social minimum wage must be submitted by 30 September 2021 at the latest.
How to proceed
Filing an application
Applicants or their representative (e.g. a fiduciary), must submit the application via an online assistant available in their business eSpace on MyGuichet.lu.
All communications in relation with a submitted application must be made using MyGuichet.lu.
The person submitting the application needs a LuxTrust product (e.g. Token, Smartcard or Signing stick) or an electronic identity card.
There are 3 possible scenarios:
- The person submitting the application is a new user on MyGuichet.lu and does not yet have an eSpace:
The creation of the eSpace is done in 2 steps:
- registration of a user;
- creation of a business eSpace.
- The person submitting the application is a user of MyGuichet.lu and already has a private eSpace: they will have to create a new business eSpace.
- The person submitting the application already has a business eSpace: the existing business eSpace can be used.
Applications for aid to compensate the increase of the social minimum wage in the context of the COVID-19 pandemic must include:
- a bank account identification document (relevé d'identité bancaire) of the business;
- a photo of the front and interior of the retail trade store or business treated as such;
- where applicable, in the case of a company belonging to a group (partners holding more than 25 % of the shares in other companies), an organisation chart of the group indicating clearly for each entity:
- the percentage of shares;
- employment in full-time equivalent (FTE);
- the annual turnover;
- the balance sheet total.
In order to better process the application, the Ministry of the Economy reserves the right to request a statement listing the employees assigned to the eligible activity during the monthly period under consideration, their sector of activity, rate of occupation and their national identification number.
Amount of aid
The amount of aid is calculated by multiplying by EUR 500 the number of employees concerned who are in employment during a period of one month between 1 January 2021 and 30 June 2021.
Aid may be claimed for any month during the eligible period.
The aid is calculated on the basis of the company's employees:
- employed on a full-time basis;
- whose monthly pay is greater than or equal to the social minimum wage and less than or equal to the social minimum wage for skilled workers;
- who were hired before 31 December 2020;
- who are in employment during a monthly period between 1 January 2021 and 30 June 2021;
- who are assigned to an eligible activity.
If the company also carries out other non-eligible activities, it is only those employees who are assigned to the eligible activity are taken into account for the calculation of the aid.
The amount provided for in paragraph 1 is pro-rated for part-time employees.
The aid may not exceed the amount of EUR 200,000 per single company.
Type of aid
The aid takes the form of a one-off capital subsidy.
The aid is tax-exempt.
A beneficiary of aid obtained on the basis of knowingly false or incomplete information shall be liable to a prison term and a fine in addition to being required to reimburse the aid received.
Forms / Online services
Demande pour l’obtention de l’aide de compensation de l’augmentation du salaire social minimum (SSM)