Faced with the impact of COVID-19 on companies and the self-employed in Luxembourg, the Joint Social Security Centre (CCSS) and the Minister for Social Security, Romain Schneider, have taken a series of measures to support companies and the self-employed by offering them greater flexibility in their management of the payment of social security contributions.
As of 1 April 2020, the CCSS is going to put the following temporary measures into place:
- Suspension of the calculation of default interest for late payments;
- Suspension of the initiation of proceedings for the forced collection of contributions;
- Suspension of the enforcement of constraints by bailiff;
- Suspension of fines to be pronounced against employers who are late in making declarations to the CCSS.
These measures will continue until the Board of Directors of the CCSS finds that they are no longer necessary. They will enable employers who find themselves in a financially precarious situation because of the COVID-19 crisis to better manage the payment of their social security contributions in the coming weeks, without having to fear administrative sanctions.
While it is clear that all social security contributions remain due, the employer can nevertheless better organise his cash flow, in combination with other economic measures introduced as part of the COVID-19 crisis.
The aforementioned measures do not only apply to future calls for contributions, but also to the current balances of social security contributions, notwithstanding any mention (interest, fines, etc.) on the CCSS statement of account dated 14 March 2020.
In addition to these measures, the CCSS will pay an advance on the financial compensation for extraordinary leave for family reasons granted to the parents of children affected by the temporary closure of basic and secondary education, vocational training and childcare facilities, etc.
The purpose of this measure is to advance a substantial part of the reimbursement of salaries that employers must continue to pay to the parents concerned and which would normally only be made in May 2020 through the Employers' Mutual Insurance Scheme (Mutualité des Employeurs).
The CCSS will contact employers potentially affected by such extraordinary leaves for family reasons in order to provide them with the information necessary to request such an advance on the reimbursement of the Employers' Mutual Insurance Fund. The advance will be liquidated in mid-April 2020.
Press release by the Ministry of Social Security