Employment Support Contract (CAE)

New from 1 July 2026, with the entry into force of the law of 3 March 2026 amending employment measures for young jobseekers:

 

For contracts signed on or after 1st of July 2026, the beneficiary's allowance is paid directly by ADEM and an invoice corresponding to the employer’s share is issued to the employer.

ADEM also ensures the beneficiary's registration with the Joint Social Security Centre (CCSS) throughout the entire duration of the contract. 

Contracts signed before 1 July 2026 remain subject to the provisions previously in force until their expiry date, including in the event of an extension.

Objective

Foster the employability of young jobseekers.

Beneficiaries

  • Young jobseekers less than 30 years of age and registered with ADEM for at least three months.
  • Employers who do not have the legal form of a commercial company (Government, municipalities, public institutions, associations or groups of non-profit persons) and who wish to provide practical and theoretical training to young jobseekers in order to increase their (re) integration into the labor market.

Conditions

The employment support contract is concluded between the Employment Agency (ADEM) and the jobseeker.

The employer will appoint a mentor who will supervise the young person during the duration of the contract. They will jointly draw up a training plan.

Duration of the CAE contract: 12 months (40 h / week).with a maximum prolongation of 6 months.

The allowances are calculated on the basis of the social minimum wage (SSM) and are subject to social security and taxes:

  • 80% of unskilled SSM for young people under 18 years of age;
  • 100% of unskilled SSM for unskilled young people and young people with a certificate of technical and vocational aptitude or a final diploma of technician, technical or secondary high school;
  • 130% of SSM unskilled for young holders of a technician's certificate (BTS) or a university degree (bachelor's or master's)

FINANCING/SUPPORT

The Luxembourg Employment Fund reimburses for the first 12 months, to employers other than the State:

  • 75% of the benefit received by the young jobseeker;
  • 100% of employers' expenses.

In the case of a prolongation, the Employment Fund will reimburse 50% of the compensation for the young jobseeker.

If the young jobseeker is hired on basis of a permanent employment contract after the completion of the employment support contract, the Employment Fund reimburses the employer for the 12 months following the date of hiring the employer's share of paid up social security contributions.

How to proceed

Please contact ADEM’s employer service.

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