Prerequisites
In order to be entitled to the full unemployment benefit, the unemployed person must:
- be involuntarily unemployed (this excludes termination of the employment contract by mutual agreement, unjustified resignation and dismissal for serious misconduct)
- be at least 16 and not more than 64 years old
- be fit for work, available and ready to accept any suitable job, the criteria for which are laid down by Grand Ducal regulation
- be registered as a jobseeker with ADEM and apply for full unemployment benefit;
- have been employed under one or more work contracts for at least 26 weeks (at a rate of at least 16 hours/week) during the 12 months (or more depending on the case) preceding your registration as a jobseeker with ADEM
- be domiciled in Luxembourg:
- at the time of notification of dismissal in the case of a permanent contract ;
- at the latest 6 months before the end of the contract in the case of a fixed-term contract;
- not hold the position of manager, director, managing director or person in charge of the daily management in a company
- not be the holder of an establishment permit
How to proceed
Following your registration as a jobseeker, ADEM's Financial aid for individuals department will contact you by post within 8 days and send you several forms to fill in:
- an application for unemployment benefit
- a declaration of income and
If you have not received the forms within one week, please contact ADEM's Financial aid for individuals department by telephone on 247-88888, Monday to Friday from 8 a.m. to 12 p.m. and from 1 p.m. to 5 p.m.
Once all documents have been returned to ADEM, the ADEM counsellor in charge will examine the application for unemployment benefits and will continue to manage your case.
Duration of benefit entitlement
In principle, the duration of the entitlement of the payment of unemployment benefits is equal to the duration of work, in whole months, during the period taken as reference for the calculation.
Example: if you have worked for 8 months during the 12 months preceding your registration with ADEM, you will receive compensation for 8 months.
The maximum period of unemployment benefit entitlement is 12 months. In certain cases, though, it is possible to obtain an extension:
| Age of jobseeker | Condition | Duration extended term |
|---|---|---|
| 16 => 49 years | 30% disability | 6 months |
| > 50 years | 15% disability | 6 months |
| > 55 years | unconditional | 6 months |
| 16=>64 years | assigned to a training or employment measur | 6 months |
| > 50 years | 20 years of social security affiliation | 6 months |
| > 50 years | 25 years of social security affiliation | 9 months |
| > 50 years | 30 years of social security affiliation | 12 months |
Amount of benefits
The amount of the full unemployment benefits corresponds to 80% of your gross salary earned during the last 3 months preceding your unemployment. Unemployment benefits are capped and can not be higher than 2.5 times the social minimum wage. The cap is lowered as the benefit continues to be paid out over time.
Under certain conditions, the 3-months period can be extended to 6 months and the rate may be 85% if you have one or more dependent children.
When does the unemployment benefit cease?
Compensation is no longer paid:
- when the set limits for the duration of the payment are reached;
- when one or more conditions for granting the benefit are no longer fulfilled;
- when you pass the age limit of 65;
- if the recipient turns down an appropriate job offer without a legitimate reason;
- if the recipient refuses to take part in internships, training courses or public service works assigned by the ADEM without a legitimate reason;
- if the unemployed person makes no or too little effort to actively seek an appropriate job.
Obligations
Recipients of full unemployment benefits must respect certain obligations.
- Present yourself on the days and times indicated by your ADEM consellor or present yourself at least once a month if no appointment is planned,
- Notify your ADEM counsellor immediately on any change of your situation.
Otherwise, sanctions ranging from 7 days of loss of benefits to 30 days in case of recidivism, up to the permanent suspension of unemployment benefits can be applied.