New COVID-19 Social Security Measures Introduced for Employers, Self-employed

As the COVID-19 health crisis continues into 2021, Luxembourg's Ministry of Social Security, as well as the boards of directors of the Joint Social Security Centre (Centre commun de la sécurité sociale - CCSS) and the Employers' Mutual Insurance Scheme (Mutualité des employeurs) have taken new measures to reduce the financial burden on employers and the self-employed in terms of social contributions.

These measures have led to legislative and regulatory changes respectively to administrative decisions, the effects of which are summarised below:

- Social contributions: Although social contributions remain due and are billed monthly, the CCCS will not receive default interest in the event of late payment of contributions before 30 June 2021. After this date, the interest rate moratoriums is reduced to 0% if the payment deadlines from which certain employers and self-employed workers benefit are respected, that is to say if the current contributions and the monthly installment on the debt are paid when due

- Enforced collection: The enforced collection of social contributions for employers in the hospitality sector is suspended until the end of March 2021. Self-employed workers from the same sector can request the suspension of enforced collection. After this date and in the event of reopening, new proposals for the clearance of arrears of contributions will be sent to these employers, who may benefit from an automatic clearance period of up to 24 months. The self-employed concerned can have their contribution base adjusted in order to reduce social contributions. Employers and self-employed workers whose financial situation is particularly difficult can contact the CCSS for an individualised audit plan with supporting documents

- Reimbursement by the Employers' Mutual Insurance Scheme: Employers and self-employed workers can benefit from a reimbursement of 100% instead of 80% for people in quarantine or isolation. This measure will be applied retroactively to 1 July 2020 and without impact on financial absenteeism when filing with the Employers' Mutual Insurance Scheme. The reimbursement will appear as a credit on the CCSS invoice which will be sent to those concerned in mid-March 2021.

For an overview of information concerning COVID-19 measures in the field of social security, visit the CCSS FAQ page for employers or the self-employed.