Unemployment benefits for self-employed workers

Unemployment can be a difficult time, especially for self-employed workers. But Luxembourg offers a robust support system for unemployment, including for the self-employed. This guide explains everything you need to know about eligibility requirements, administrative procedures, and benefits available specifically for self-employed workers in Luxembourg.

Who is eligible for unemployment benefits in Luxembourg?

Self-employed workers and unemployment in Luxembourg

A self-employed person is someone who works for themselves, without being bound by an employment contract with an employer. Due to their status, self-employed people do not receive a salary. They receive income from their own professional activity, whether they are traders, craftsmen, professionals (such as lawyers, doctors, or consultants), or freelancers.

Self-employed workers are responsible for their own administration and must be affiliated with social security. As a result, they must pay monthly social security contributions for health insurance, pensions, and unemployment insurance.

As a self-employed person, what are my rights in the event of unemployment?

Minimum of 6 months' activity to qualify for unemployment benefits in Luxembourg

To receive unemployment benefits as a self-employed person in Luxembourg, you must prove that you have been working for at least 6 months. In addition, you must have been registered with the Luxembourg social security system for at least 2 years.

Be aware of the reasons for ceasing activity in order to receive unemployment benefits

Why did you cease your activity? Only certain reasons for ceasing activity are valid for receiving unemployment benefits.
Financial difficulties, medical reasons, or force majeure are accepted reasons for ceasing your activity. These are the main conditions for receiving unemployment benefits for self-employed workers.

How do you apply for unemployment benefits?

Obligation to register with ADEM

To receive unemployment benefits, self-employed workers must register with a regional ADEM agency. They must do so within two weeks of ceasing their activity.

To validate their application for unemployment benefits in Luxembourg, self-employed workers must submit the following documents:

• Proof of cessation of activity (official documents proving that your self-employed activity has ended)
• Tax documents and income statements from previous years to prove your self-employed status.

These documents are crucial for ADEM to process your application for self-employed unemployment benefits in Luxembourg.

How much unemployment benefits does a self-employed person receive?

Let's take the example of Pierre, a self-employed worker in Luxembourg. Over the last two years, Pierre has declared an average contributory income of €4,000 per month. He has two dependent children.

• 80% of contributory income: Pierre will normally receive 80% of €4,000, or €3,200 per month.
• Increase for dependent children: As he has dependent children, Pierre is entitled to 85% of his contributory income. He will therefore receive 85% of €4,000, or €3,400 per month.
• Unemployment benefit ceiling for self-employed workers: The ceiling for self-employed workers is set at 2.5 times the minimum social wage (SSM), i . e . €6,270.60. The amount of €3,400 is below the ceiling, so Pierre will receive €3,400 per month.

More information on calculating unemployment benefits for self-employed workers

Duration of unemployment benefits for self-employed workers

Up to 365 days of benefits and possible extensions

As a general rule, a self-employed person receives unemployment benefits in Luxembourg for 365 days over a period of 24 months.

Possible extension: Depending on your age and length of service, you may be able to extend your benefit period

Age	Length of service	Duration of benefits
50	30 years or more	24 months
55	35 years or more	36 months
60	40 years or older	48 months

How can you avoid losing your entitlement to unemployment benefits?

The unemployment benefit system in Luxembourg offers financial security for self-employed workers. To be eligible, self-employed workers must meet the eligibility criteria and follow the required administrative procedures.

The following are reasons why you may lose your unemployment benefits

• Reaching the maximum benefit period
• Repeated refusal of suitable employment or training
• Failure to attend mandatory appointments with ADEM.

Your obligations to continue receiving unemployment benefits

• Actively seeking employment and proving this upon request
• Be available for work
• Participate in training or internships offered by ADEM.

For answers specific to your situation, please contact ADEM directly. This government agency will guide you through all the steps involved in unemployment for self-employed workers in Luxembourg.

For more information on unemployment benefits and unemployment, visit the official ADEM website.