Unemployment in Luxembourg: how does it work?

How to register as a jobseeker in Luxembourg. What are the eligibility criteria for full unemployment benefits? What level of benefits are paid and for how long? myLIFE helps you understand how the unemployment system works in the Grand Duchy of Luxembourg.

If you’ve been laid off, your employment contract has expired or you’ve just finished your studies and can’t find a job, don’t panic! You are not alone during this difficult period. Bodies such as the Agence pour le développement de l’emploi (ADEM) can help get you back on your feet.

Who can register with ADEM?

Anyone looking for a job in Luxembourg can register as a jobseeker with ADEM. You can sign up if you’ve been made redundant, have resigned or come to the end of your fixed-term contract (“CDD”), are self-employed and your own business has gone bankrupt or ceased trading, have finished your studies, or still have a job but are looking to move.

Once you register, subject to certain conditions, you can use the various services designed to help you find a new job: mentoring from a personal adviser, training to suit your profile, employment measures, financial support, access to vacant positions posted by Luxembourg employers, etc.

Remote registration

• • Via MyGuichet.lu: don’t forget to have your LuxTrust certificate or your electronic ID card to hand.
  • By telephone:
    • call the ADEM Contact Center directly on +352 247-88 888;
    • or fill out the contact form on the ADEM website (you will then be offered a telephone appointment to carry out your registration).

Once you have registered, you’ll receive an invitation to meet your personal adviser. This will give you the opportunity to discuss your situation and goals in order to target your job search effectively and give yourself the best chance of a new career.

What are the eligibility criteria for unemployment benefits?

To cover your loss of income during this transition period, you can apply for Luxembourg unemployment benefits during the two weeks following your ADEM registration.

You must meet several criteria for this: you must be registered with ADEM, resident in Luxembourg, aged between 16 and 64 and, lastly, fit and available to work. Additional conditions will apply depending on your status.

Unemployment benefits are not granted if you resigned or your employment contract was terminated by mutual agreement.

If you are a jobseeker who was previously in work:

• • you must have lost your job involuntarily – unemployment benefits are not granted if you resigned or the employment contract was terminated by mutual agreement;
  • you must have worked at least 16 hours per week for at least 26 weeks (with one or several employers) during the 12 months prior to registration;
  • you may not be the holder of a business permit or the manager, director, deputy director or officer in charge of the day-to-day management of a company.

Useful info: if you have been dismissed or resigned for gross misconduct and legal proceedings are ongoing, you can make a simple application to the president of the competent Luxembourg labour court to authorise provisional allocation of full unemployment benefits whilst you await the definitive legal ruling on the dispute.

If you were previously self-employed, you must provide justification of at least two years of obligatory social security contributions in Luxembourg (as an employee or self-employed person) and have worked for at least six months before registering with ADEM.

Finally, at the end of your studies, the right to unemployment benefits depends on your age and your qualification. Check the details of the conditions for school leavers on the ADEM website.

What are the jobseeker’s obligations?

In return for the payment of unemployment benefits, you undertake to comply with several obligations:

to actively look for a job; to attend meetings scheduled by your personal adviser; to carry out any procedures of which you are notified; to be easily available and contactable; to respond to any summons from ADEM; to inform ADEM of any change in your situation which could affect your availability (change of address, illness, foreign travel, new job, etc.); to accept any appropriate job.

Useful info: looking for work is a full-time occupation, so you have the right to take 25 working days as holiday per year, during which time you do not have to comply with ADEM requirements – ask your personal adviser how to apply. Note that during this period your unemployment benefits are suspended, as is your social cover.

In Luxembourg, in principle, unemployment benefits correspond to 80% of your previous gross income.

How high are unemployment benefits?

In Luxembourg, in principle, full unemployment benefits correspond to 80% of your previous gross income.

If you are a former employee, in principle, your unemployment benefits correspond to 80% of your gross salary during the three or six months prior to your registration with ADEM (85%, subject to conditions, for an unemployed person with dependent children).

If you were self-employed, you receive 80% of the income used as the basis for pension contributions for the last two financial years (providing contributions were paid) or 80% of the minimum wage for unskilled workers.

Useful info: unemployment benefits are capped at 2.5x the minimum wage and this cap declines over time.

Lastly, if you are a school leaver, benefits are fixed at 70% of the minimum wage, unless you failed the exams at the end of your apprenticeship or are a minor (16 or 17 years old), in which case benefits are 40% of the minimum wage.

NB: if you receive any income in addition to unemployment benefits, you must declare this to ADEM. If this income exceeds 10% of your reference salary, this amount is deducted from your unemployment benefits.

For example: Before losing her job, Jeanne earned EUR 3,500 gross per month. Today, her unemployment benefits are 80% of this, i.e. EUR 2,800. Whilst looking for a job she has taken work for a few hours a week in a restaurant. If she earns less than EUR 350 per month from this (10% of her former reference salary), her unemployment benefits remain unchanged and she can keep both income streams. On the other hand, if she earns more than this, say EUR 500, the difference between this extra income and the authorised amount (i.e. EUR 500 – EUR 350 = EUR 150) is deducted from her unemployment benefits, which will therefore fall from EUR 2,800 to EUR 2,650.

In Luxembourg, unemployment benefits may, in principle, be paid for up to 12 months when the conditions are met.

For how long are unemployment benefits paid?

In Luxembourg, unemployment benefits may, in principle, be paid for up to 12 months when the conditions are met. As well as looking for a new job, you can use this period to boost your career prospects by following training courses and working on your professional network.

The length of time for which benefits are paid is based on the time worked (in months) during the reference period.

For example:

Useful info: the length of time for which benefits are paid may be increased upon request for jobseekers who are over 50, in training, or working in the public interest, etc.

Becoming a jobseeker may be a challenging time, but try not to be despondent and treat this experience as an opportunity. This period of transition may be the moment to step back and take stock of your life. It may be the incentive you need to shift direction in your career, change your lifestyle or launch the business you’ve been dreaming about for years.

Good luck!