Luxembourg Approves 53 Short Time Working Applications for June 2026

On Tuesday 26 May 2026, the Committee for Economic Development held a meeting under the chairmanship of Luxembourg’s Minister for the Economy, SMEs, Energy and Tourism, Lex Delles.

According to Luxembourg’s Ministry of the Economy, during the meeting, the committee first analysed the national economic situation and the labour market situation for April 2026.

Then it examined the provisional applications for the short time working scheme for June 2026. A total of 58 companies applied, which is the same number as in the previous month. The government will make the final decision on whether to approve the support.

After reviewing the submitted files, the committee issued a positive opinion on 53 applications. Among these applications, 37 related to economic factors, nine related to structural factors, meaning they were linked to an employment retention plan, and seven applications were motivated by economic dependency. The number of employees concerned reached 2,776 full time equivalent (FTE) jobs compared with 2,442 the previous month, said the ministry.

According to the authorities, these figures remain indicative and concern the projected number of affected employees, which do not represent a concrete indicator of the economic situation. This assessment can take place three months after the provisional applications are submitted. Once a provisional application receives a favourable opinion, companies have two months to submit a statement of the hours actually not worked to ADEM.

The ministry noted that, regarding short time working applications for February 2026 reviewed during the committee’s January 2026 meeting, 29 of the 51 approved provisional applications actually made use of the scheme. Three files remain under review, bringing the number of completed files to 26.

Among these 26 declarations, 792 employees actually worked reduced hours out of the 1,314 employees initially expected to be affected in February 2026, compared with 732 employees in the previous month. 160 FTEs were affected, compared with 167 in the previous month.

The total number of reduced working hours declared for February 2026 reached 27,604, compared with 28,805 in the previous month.

The cost to the Employment Fund for February 2026 reached €581,605 compared with €525,525 for January 2026.

The ministry added that the committee issued a positive opinion on four applications for tax exemption on dismissal and departure compensation under Article 115 (10) L.I.R. These applications concerned a total of 20 employees.