On 25 March 2020, the Luxembourg government adopted, by way of a Grand-Ducal Regulation, a regime putting in place an emergency indemnity regime for microenterprises and independent workers which fulfil certain criteria. The indemnity, which consists of a lump sum of EUR 5,000, will be granted to microenterprises and self-employed workers that were forced to cease their activities as a consequence of the social distancing measures put in place under the Grand-Ducal Regulation of 18 March 2020 due to the outbreak of the COVID-19 pandemic.
Furthermore, on 3 April 2020, the Luxembourg government adopted a law that enables the Luxembourg state to provide financial assistance to companies that suffer from the economic effects of an event having detrimental economic repercussions, such as the COVID-19 pandemic.
Such financial assistance will be limited to personnel and rental costs for the period determined by way of a Grand-Ducal Regulation (calculated on the basis of the financial statements of the previous year). The aid will cover a maximum of 50% of the above-mentioned costs and is limited to the amount of EUR 500,000 per company. This financial assistance will be repayable by the companies, but not until a period of 12 months has elapsed from the date of the first payment.
Finally, on 8 April 2020, the Luxembourg government adopted, by way of a Grand-Ducal Regulation, an emergency indemnity to be granted to self-employed workers. The indemnity, which consists of a lump sum of EUR 2,500, will be granted to self-employed workers that are affected by the COVID-19 outbreak, that employ fewer than 10 people and whose professional revenue used as a basis for the calculation of its social contributions does not exceed 2.5 times the social minimum wage.
This indemnity may not be added to the indemnity for microenterprises.