There are new initiatives to ease the financial burden of social security contributions for employers and self-employed workers in Luxembourg Shutterstock

There are new initiatives to ease the financial burden of social security contributions for employers and self-employed workers in Luxembourg Shutterstock

In a press release issued on Thursday, the social security minister announced legislative and regulatory changes as follows:

Social security contributions

Although social security contributions remain due and are invoiced monthly, collection authority the CCSS will not charge interest on arrears in the event of late payment of contributions until 30 June 2021. Beyond 30 June 2021 the rate of default interest is being reduced to 0% if the payment deadlines from which certain employers and self-employed persons benefit are respected, i.e. if the current contributions and the monthly instalment on the debt are paid on time.

Forced collection

The forced collection of social security contributions for employers in the hotel and catering sector has been suspended until the end of March 2021. Self-employed people from the same sector can request the suspension of forced collection. After this date and in cases where businesses reopen, new proposals for the settlement of arrears of contributions will be sent to these employers, who can benefit from an automatic settlement period of up to 24 months. Self-employed workers can have their contribution base adjusted in order to reduce their social security contributions. Employers and self-employed workers whose financial situation is particularly difficult can contact the CCSS to establish a personal settlement plan.

Reimbursement by the Employers’ Mutual Insurance Company

Employers and self-employed workers will be able to benefit from a 100% reimbursement for people in quarantine or isolation, instead of 80%. This measure will be applied retroactively to 1 July, 2020 and won't affect financial absenteeism when filing with the Mutualité des employeurs. The reimbursement will appear as a credit on the CCSS invoice which will reach employers in mid-March 2021.

More information (in French) can be found here.