The increase was announced by the family ministry on Wednesday. It is aimed particularly at people on or around the minimum social wage who have been badly affected by short-time working, a temporary employment measure subsidising 80% of salaries for employers in financial difficulty.

The new allocations will apply as follows:

•     €2,640 for a single person (€1,320)
•     €3,300 euros for a household of 2 people (from €1,650)
•     €3,960 euros for a household of 3 people (from €1,980)
•     €4,620 euros for a household of 4 people (from €2,310)
•     €5,280 euros for a household of 5 people or more (from €2,640)

Applying for cost-of-living allowance

In order to qualify for the cost-of-living allowance, the overall annual household income, which is estimated over a reference period of 12 months preceding the month in which the application is submitted, may not exceed a certain threshold:

Households with a gross annual income between the two thresholds indicated in the table below are entitled to a reduced cost-of-living allowance. This allowance is calculated based on the difference between the amounts of the cost-of-living allowance normally obtained by an applicant in a comparable situation and the part of the income amount that exceeds the threshold.

In addition to the condition that the income may not exceed a certain threshold, the applicant must

•     have the right of residence in Luxembourg;
•     be registered in the main register of the national register of natural persons (RNPP);
•     currently reside in the place where his or her habitual residence is established;
•     have resided in Luxembourg continuously for 12 months prior to the month in which the application is submitted;
•     have a modest income, alone or with persons who are part of the domestic community at the time of the application.

The application form for the cost-of-living allowance can be found by visiting www.fns.lu, guichet.lu or from your local commune.

People who have already received a cost of living allowance for this year do not need to reapply; the difference between the new amount and the amount already received will be paid out on 1 July 2020 without any further formalities.

People who have already applied to the SNSF for the year 2020 and whose application is still being processed will receive the new amount of the allowance if all conditions are met.

People who have not yet submitted an application for cost of living allowance must submit their complete application before 30 September 2020.

For further information, visit www.fns.lu or call (+352) 49 10 81-999 on weekdays from 8:30am to 11:30am.