In the framework of COVID-19 pandemic, the Luxembourg Government took a set of new measures in order to support the companies in trouble, among which:

Social security contributions

In order to support companies and self-employed individuals through more flexibility in their management of the social security contributions’ payment, the CCSS and the Minister of Social Security decided the following temporary measures, as from 01.04.2020:

  • Suspension of the default interest’s calculation for late payments
  • Suspension of the execution procedures for collection of social security contributions
  • Suspension of the enforcement of constraints by bailiff
  • Suspension of penalties due to late monthly salary declarations to the CCSS

These measures apply both to:

  • Future calls for social security contributions
  • Current balance of social security contributions, regardless of mentions (interest, payment deadlines, etc.) appearing on the CCSS statement of 14.03.2020

These measures will remain applicable until the board of the CCSS considers that they are no longer relevant.

No action must be taken to ask for a payment extension.

Even if all social security contributions remain due, employers can nevertheless better organize their cash flow, combined with other economic measures implemented in the framework of the COVID-19 crisis.

Extraordinary leave for family reasons Covid-19

  • Application for the leave for family reasons

The extraordinary leave for family reasons (due to the temporary closure of nurseries/schools) has been extended by the Minister of Social Security until the end of the pandemic.

As a reminder, it is reserved for parents of children under 13 years old if there is no other possibility for child care. Both parents cannot take this leave at the same time and it cannot be cumulated with other measures such as partial unemployment.

To benefit from this leave, the employee must follow the following process:

    • Inform his employer of any absence (on the day of absence at the latest)
    • Complete the ad hoc form once and send it to the CNS and the employer:
      https://cns.public.lu/dam-assets/formulaires/cprf-covid/certificat-dedemande-pour-CRF-v5-en.pdf
    • Do not mention any starting/ending date on the form (this form will cover all consecutive or non-consecutive leave days)
    • Count of effective days by the employer through the monthly declaration of the work incapacity periods to the CCSS
  • Advance on the reimbursement of the leave for family reasons

Employers concerned have received or will receive in the next few days a letter from the CCSS detailing the process to be followed if they want to obtain an advance on the reimbursement of the salary paid to employees who have benefited from the extraordinary family leave Covid-19:

    • In principle, the reimbursement of the salary paid in March to employees absent due to family leave is made by the “Mutualité des Employeurs” (by compensation through the social security invoice of May).
    • On an exceptional basis, employers may request an advance on this refund For this purpose, employers must submit a secure online application no later than 08.04.2020 (the letter received from the CCSS contains a unique access code)
    • The CCSS will determine the amount of the advances which will be paid by mid-April
    • According to the usual process, employers must also declare work incapacity for March (exact hours of leave for family reasons)
    • On this basis, the CCSS will calculate the reimbursements due by the “Mutualité des Employeurs” and will subsequently regularize the employer’s account by deducting the advance thus granted.

For more information and details: https://gouvernement.lu/fr/actualites/toutes_actualites/communiques/2020/03-mars/19-cotisations-sociales.html

Frontier workers

  • Tax tolerance threshold
    • Belgian and French frontier workers: the authorities concerned agreed with the Luxembourg authorities on the fact that the current situation linked to COVID-19 constitutes a force majeure event.As from 14.03.2020, homeworking days imposed to Belgian and French frontier workers are not to be included in the calculation of the respective 24 or 29 day-tolerance threshold. This measure is applicable until further notice.
    • German frontier workers: negotiations are ongoing to allow to German frontier workers to exceed the 19 day-tolerance threshold.
  • Social security threshold

The issues of homeworking and its implications for social security legislation applicable to frontier workers during the period of the coronavirus crisis is being examined in consultation with neighbouring countries.

The Luxembourg social security authorities consider that the periods of homeworking linked to the coronavirus should not be considered for the determination of the social security legislation applicable to the workers concerned (25% threshold) and therefore have no influence on their social security affiliation.

It is therefore not required to complete any formalities with regard to the competent institutions.

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