Unemployment, Benefits and Job Seeking in Luxembourg

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Unemployment, Benefits and Job Seeking in Luxembourg

Luxembourg employees and workers pay Luxembourg national insurance, deducted from their wage or salary to cover their contribution to medical, unemployment and retirement costs.

Approximately half of this is paid by the employer and the other half by the employee. The share of the employee or worker contributions (Charges sociales) is deducted directly from the gross salary at source.

End of Employment

At the end of a work contract or in the case of dismissal the first step is to register at the local Luxembourg employment office (Administration de l'Emploi - ADEM). The ADEM is the government agency involved in helping job seekers to find work and calculating unemployment benefits.

• Administration de l'Emploi (ADEM)
  At: 10 rue Bender, L-1229 Luxembourg
  Tel: 24 78 53 00
  Fax: 40 61 40
  e-mail
  Website (in French)
  Open: Monday to Friday from 08:30-11:30 and 14:00-17:00

Registration at the employment office

In order to register at the employment office (ADEM) the person must:

• Be resident in Luxembourg (take proof of address registration - Attestation d'enregistrement)
• Have a social security card (carte de sécurité sociale) or an E303 form

Registration must be made in person at the local office closest to their place of residence. The person must present proof of identity (identity card or passport).

• To find a local office: Click here (in French) 

The job seeker will receive a "job seekers guide" (Guide du demandeur d'emploi) along with a questionnaire to be filled in and returned with one week. An appointment is made with an advisor who will provide guidance and advice to help the person find employment. Registration as a job seeker is considered definitive following the first appointment with an advisor and the person will receive a document (carte de présentation) as proof of their inscription as a job seeker.

Job seekers obligations

To benefit from the services offered by the ADEM, the job seeker must sign a contract (convention). This must be signed within three months following registration at the employment office for job seekers aged under 30 and within six months following registration for job seekers aged 30 to 64. The convention stipulates that the person:

• Is actively searching for employment (and can prove it with evidence of job applications, for example)
• Must be available to go to the ADEM office if they receive notification to do so. If the person does not reply to a summons from the ADEM they must justify their absence (for example if they are at a job interview or sick) 
• Must accept any appropriate job offer
• Must regularly review their situation with their advisor

If these rules are not respected the person may lose their employment benefits for a number of days. If they do not receive any benefits they may lose their rights to use the service provided by ADEM for two months.

Services provided by ADEM

The ADEM organises a number of services for individuals looking for employment. These include workshops on job seeking strategies, training programmes as well as specific services for those aged under 30, women looking to return to work and disabled job seekers. 

Unemployment Benefits

Job seekers eligible for unemployment benefits must apply for these within 15 days following the end of an employment contract and after registration at the employment office has been carried out. They will need to provide the following documents to the employment office:

• Proof of registration with the employment office (carte de présentation)
• Work contract / letter of dismissal

The person in charge (agent-chômage) of the job seeker's application will provide a number of documents which need to be completed and handed in along with proof of tax paid (fiche de retenue d’impôt). The application will be examined and the unemployed person will be notified of their eligibility for benefits.

Who may benefit

In order to qualify for any unemployment benefits the person must be resident in Luxembourg. Cross border workers (travailleurs frontaliers) who have worked in Luxembourg but live abroad should apply for benefits in their place of residence.

An employee who has been dismissed or made redundant may be entitled to unemployment benefits, except in the event of dismissal for gross misconduct. To qualify for benefits the person must register at their local unemployment office and be aged between 16 and 64.

An employee may resign without giving a reason. They may use the services provided by the ADEM to look for another job but will not be entitled to unemployment benefits except under exceptional circumstances.

Self-employed individuals who have ended their work activity due to financial, economic or medical reasons, or in the case of force majeure may qualify for benefits. They must prove that they have been affiliated to a social security organisation for at least two years and be aged between 16 and 64.

Young people under the age of 21 may qualify for unemployment benefits if they have not found work at the end of their full time training or education.

Amount and payment

Luxembourg law distinguishes between unemployment of employees, self employed people and those aged under 21 who have finished their full time training or education. In order to receive any unemployment allowance the person must be registered at the employment office. Benefits are paid between the 17th and the 20th of the month.

Employees

A person who has worked at least 16 hours a week for at least 26 weeks within the last 12 months may receive unemployment benefits. The length of time for which payments are made will depend on the amount of time worked within the last 12 months.

• For further information on the duration of payments: Click here (in French) 

Payments are based on the last three months of salary and are calculated at a rate of 80 to 85 percent (depending on family status) of the reference salary.

Self-employed

Benefits are calculated at a rate of 80 to 85 percent (depending on family status) of income earned within the last two tax years if the person has paid their social charges. If this is not the case, benefits amount to 80 to 85 percent of the minimum salary. They are paid for 12 months within a 24 month period.

• For further information on the duration of payments: Click here (in French) 

Young people

Young people between 16 and 21 years old may qualify for unemployment benefits if they register at the employment office within 12 months following the end of training or studies. The age limit may be increased to up to 28 years depending on the type of studies undertaken.

Benefits are paid after 26 weeks of consecutive inscription as a job seeker and are calculated at a rate of between 40 and 70 percent of the minimum salary (depending on the person's age). They are paid for 12 months within a 24 month period.

Specific Allowances for Job Seekers

Under certain circumstances, job seekers may be entitled to additional help and allowances. These include:

• Payments to compensate workers who accept employment with a salary inferior to their former salary
• Financial support when creating a business
• Financial support to those who choose to move house for a new job
• For further information: Click here (in French)

Websites for Job Seekers in Luxembourg

The ADEM will advertise a number of employment opportunities. Job offers are also advertised on the following websites:

• Lux Web Emploi (in French)
• Monster  
• Jobs.lu
• Jobsearch.lu (in French)

Further Information

• Information on employment from the Luxembourg government portal: Click here (in French)
• Luxembourg Employment Office Administration de l'Emploi (in French)
• See AngloINFO INFOrmation page Unemployment in France
• See AngloINFO INFOrmation page Unemployment in Belgium
• See AngloINFO INFOrmation page Unemployment in Germany

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