Labour minister Dan Kersch (LSAP) pictured during a July 2020 press conference
Photo: Patricia Pitsch
The labour ministry has shelved plans to introduce a crisis wage for self-employed workers after presenting additional aid programmes on Monday.
Labour minister Dan Kersch (LSAP) mooted the crisis wage to replace lost income for independents who cannot work because of government anti-virus measures or have lost 75% of more of their revenue. It was supposed to provide 80% of regular earnings, similar to the country’s partial unemployment scheme.
But the ministry on 16 February said the plan was now redundant after the government increased support for businesses, raising compensation for costs not covered and widening criteria to receive a relaunch grant.
President of employer union UEL Michel Reckinger on Radio 100,7 had welcomed the new measures, saying they would take pressure off the crisis wage debate.
The UEL and Kersch were at odds over who should pay for the crisis wage, with the minister having suggested employers and the state should co-fund the initiative, whereas the UEL demanded a taxpayer-funded mechanism.
“The UEL's appreciative statement makes further demands by the craftsmen's federation (FDA) regarding a replacement salary for the self-employed superfluous,” the labour ministry and its department for small and medium-sized enterprises, led by Lex Delles (DP), said in a statement.