ADEM Recruitment Subsidies in Luxembourg

1. Financial recruitment subsidies by candidate profile

Older jobseekers (aged 45 and over)

Private sector employers may benefit from a reimbursement of employer social security contributions when hiring a jobseeker aged 45 or over. The application must be submitted to the ADEM within 6 months of the hiring date, accompanied by the employment contract. Entitlement to the subsidy is subsequently justified by quarterly declarations.

Long-term unemployed (minimum 12 months, aged 30 and over)

For jobseekers registered for at least 12 months and aged at least 30, it is possible to create an insertion employment position with a degressive financial subsidy over 3 years, capped at 150% of the unskilled social minimum wage. For candidates over 50, the subsidy may be total until retirement age. This scheme applies primarily to the State, municipalities and non-profit associations.

Tax bonification

For the hiring of jobseekers registered with the ADEM for at least 6 months, the employer may obtain a tax bonification for 12 months, equivalent to 10% of the gross monthly remuneration.

Temporary re-employment aid

This aid applies when the beneficiary is engaged under a permanent contract or fixed-term contract of at least 18 months (excluding replacements for parental leave) with a company with a fixed establishment in Luxembourg. Several strict conditions apply cumulatively:

2. Inclusion assistance (disability and external reclassification)

A specific support scheme is available for disabled employees or those undergoing external reclassification hired in the private sector or through an ADEM measure (Art. L.553-1 et seq.).

Scope of assistance

Assistance is provided by an approved assistant (self-employed or employed) or an approved assistance service. It includes:

Financial coverage

The Employment Fund covers the costs of drawing up the plan up to a flat-rate amount of 2,000 euros (Art. L.553-4). For the assistance services themselves, the flat-rate hourly rate is 50 euros (at index 794.54), with a maximum number of hours varying according to the duration of the contract (Art. L.553-6):

3. Youth integration: the employment support contract

Eligibility conditions

The ADEM may offer an employment support contract to young jobseekers under 30 years of age registered for at least 3 months (except for apprentices). The young person is placed with a promoter for training combining practical and theoretical components.

Restriction on promoters

Promoters with the legal form of a commercial company are excluded from the scheme (Art. L.543-1). This mechanism is therefore reserved for public bodies, non-profit associations and other non-profit entities.

4. Key warnings

Application deadlines: a forfeiture condition

Compliance with subsidy application deadlines is a strict condition that cannot be rectified after the fact. Case law confirms this: the submission of quarterly declarations cannot substitute for a late initial application, which results in the permanent forfeiture of the right to the subsidy (CSSS, Ref. 2021/0118). All applications must therefore be submitted within the statutory deadlines as soon as the employment contract is concluded.

Normative value of ADEM information

The practical guides published on Guichet.lu constitute practical information of an indicative and non-normative nature. In case of doubt or dispute, reference should be made to the articles of the Labour Code cited, or the ADEM should be consulted directly. Eligibility conditions and amounts may change independently of the update of the practical guides.