Workers are entitled to an unemployment benefit if they meet certain conditions:
i. must be able to work, aged between 16 and 64 and be resident in Luxembourg
ii. must not be unemployed for a fault of their own (must have lost the job involuntarily);
iii. must be registered as a job-seeker and prepared to accept suitable employment commensurate with his/her abilities
iv. must have been employed for at least 26 weeks (6 months) during the year preceding unemployment.
If the unemployed person is the sole breadwinner for the family, the unemployment benefit is 80% of the previous earnings. If he/she has one or more dependent, rate is increased to 85%. However, the unemployment benefit amount cannot exceed an amount equal to 2.5 times the minimum wage. If unemployment status lasts for more than 6 months in a 12 months period, the benefit cannot exceed an amount equal to twice the minimum wage.
Unemployment benefit is provided for the same length of time as the employment lasted during the 12 months before the unemployment started, but only for a maximum of 12 months over any 2 years period. The duration may be extended if the unemployed person is more than 50 years old.
Under the recently adopted Act on professional (independent) artists and ‘intermittents du spectacle’ (subordinate employees in the entertainment industry without steady employment), entitlement to compensation for the periods of inactivity for independent artists involved in the entertainment industry has been limited to 121 days in a period of 365 days. Also the requirements for entitlement included in the former legislation of 1999 have been replaced with two requirements, which firstly require an affiliation with national social security agency for at least 6 months and secondly, a real activity (engagement) in the national artistic and cultural scene.
Source: Labour Code, Libre V