The Mutuality of Employers (mutualité) is an institution of the social security created by the law of 13 May 2008 introducing a single employee status. It has been operational since January 1, 2009.
The purpose of the ‘mutualité’ is to protect employers against the financial risk of the continuation of the payment of wages to workers (Lohnfortzahlung) who are incapacitated for work, an employer-related obligation enjoyed by all employees in accordance with the law of 13 May 2008
The mutuality is managed by a board of directors, chaired by the secretary general of UEL and composed of representatives of the employers’ organisations gathered within UEL as well as the president of the Centre commun de la sécurité sociale and the CNS and a representative of the Luxembourg Federation of Independent Professional Workers and of the Chamber of Agriculture.
The generalisation of the continuation of remuneration (Lohnfortzahlung) is one of the major innovations introduced by the single status for all employees in the private sector. The employer continues to pay the employee who is unable to work because of illness or work accident until the end of the month in which the 77th day of sickness occurs during a 12-month reference period. This solution makes it possible to reach, on average, a 13-week pay continuation period.
Example
- In the case where the 77th day falls on the last day of the month, the employer’s intervention ceases as of the 1st day of the following month and is therefore limited to 11 weeks.
- In the case where the 77th day falls on the 1st day of the month, the employer ensures the continuation of the remuneration until the end of the current month, his intervention then bears on 15 weeks.
Affiliates of the mutuality are primarily the employers who contribute to this institution and who receive reimbursement up to 80% of the remuneration paid to their employees during the ‘Lohnfortzahlung’ period, which lasts an average of 13 weeks per calendar year and during which the CNS does not intervene in this risk. Affiliates may also include professionals and self-employed persons who contribute on an optional basis to cover the same risk for themselves.
Documents (in French)
- Statutes of the employers’ mutuality
- Creation of a mutuality of employers – Press release – 12 November 2008
- Contribution rates of the Employers’ Mutual Benefit Society for the financial year 2023 – 22 December 2022
- Press release “Mise en œuvre de l’accord tripartite du 7 mars 2023 concernant la troisième tranche indiciaire de 2023” – 4 August 2023
- Letter “Avis aux non-salariés” – 12 August 2023
For more information (in French)
