Financial aid with respect to the hiring of older or long-term unemployed persons

This page was last modified on 12-02-2016

Employers who hire an older or long-term unemployed person may, subject to certain conditions, recover the social security contributions paid.

Applications must be submitted to the national employment administration (Agence pour le développement de l'emploi - ADEM).

Forms / Online services

Carry out your procedure:

  • With an online service

    • Aide à l'embauche de chômeurs âgés et de chômeurs de longue durée - déclaration trimestrielle de créance en ligne
  • By downloading a form

    • Aide à l'embauche de chômeurs âgés et de chômeurs de longue durée - déclaration trimestrielle de créance

* May be submitted via MyGuichet

Who is concerned

This financial aid is available to all employers established in Luxembourg with respect to the hiring of:

  • the long-term unemployed of 30 years of age and over who have been registered as a job seeker for at least 12 months;
  • the long-term unemployed of 40 years of age and over who have been registered as a job seeker for at least 3 months*;
  • unemployed persons of 45 years of age and over who have been registered as a job seeker for at least 1 month*.

* This condition does not apply to employees whose previous employer devised a job protection plan approved by the Minister of Labour, Employment and Immigration.

Prerequisites

The employment contract offered to the job seeker must be:

The employment contract must be for at least 16 hours work per week.

How to proceed

Initial application

The employer must submit a request for financial aid for the hiring of older unemployed persons and the long-term unemployed to ADEM within 6 months of having hired the person in question.

The request must be accompanied by a copy of the employment contract.

Quarterly declaration

In order to recover the contributions paid to the Joint Social Security Centre (Centre commun de la sécurité sociale - CCSS), the employer must submit a claim declaration to ADEM every 3 months.

The declaration must be accompanied by pay slips for the months concerned.

Amount and duration of aid

Social security contributions are refunded to the employer:

  • for a period of 2 years for the hiring of a long-term unemployed person of 30 years of age or more;
  • for a period of 3 years for the hiring of a long-term unemployed person of 40 years of age or more;
  • until the retirement age for the hiring of an unemployed person of 45 years of age at least.

In the case of a temporary employment contract (18 to 24 months), contributions are only refunded during the contract period.

Who to contact