The method of calculating eligible costs has also been revised to simplify the administrative procedure Shutterstock

The method of calculating eligible costs has also been revised to simplify the administrative procedure Shutterstock

The amendment was announced by the government on Tuesday in a bid to support Luxembourg companies financially impacted by the covid-19 pandemic.

The repayable aid forms part of a draft law being accelerated by economy minister Franz Fayot (LSAP) and small and medium-sized business minister Lex Delles (DP).

The method of calculating eligible costs has also been revised to simplify the administrative procedure. These will now include the firm’s staff costs and rental charges, the latter being capped at €10,000 per month per single firm. The text assimilates personnel costs income from the exercise of a professional activity carried out as a self-employed person on condition that the person concerned is affiliated to the Luxembourg social security system. These costs will be capped at an amount equivalent to 2.5 times the minimum social wage. Finally, the government stressed that reimbursement of the aid must not begin until 12 months at the earliest after the first payment of the reimbursable advance.

This bill complements existing aid instruments which also apply in such cases, such as short-time working.