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Unemployment rate in Luxembourg is at 4.9 percent, one of the best in the world.

For those that are unemployed, there are benefits available provided by unemployment insurance. Unemployment insurance is mandatory for all employees in Luxembourg and paid for through an income tax surcharge.

Who Qualifies

Benefits are paid for those that become unemployed involuntarily (i.e. laid off/made redundant) and not for those that quit their jobs. Workers must have been employed for at least 26 weeks during the last 12 months. To qualify for benefits, the worker must also be physically available to work.

Young people who have completed vocational training are eligible for unemployment benefit at a special rate. The benefit depends on their age, the diplomas or certificates obtained, and the statutory minimum wage applicable. There is also a benefit for partial unemployment. This is for those that suffer from working hours being significantly reduced.

Applying

To apply, the unemployed must enrol with the National Employment Office and register with the local benefits office. An application for unemployment benefit should be submitted to the Administration de l'Emploi within two weeks of becoming unemployed. If a late application is submitted, benefits are backdated 14 days.

Benefits

The normal unemployment benefit is 85 percent of the gross salary in the last three months with dependents and 80 percent without. If the spouse earns more than a certain amount, the benefit is reduced accordingly.

The maximum duration for unemployment benefit is 365 days in a 24 month period. This can be extended by up to 182 days. This depends on your age, profession and family situation. Those over the age of 50 can further extend the benefit period by up to 12 months if they have a certain number of credits toward a pension plan.