ARTICLE
18 December 2018

Salary Payment In The Event Of Illness

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ELVINGER HOSS PRUSSEN, société anonyme

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This amendment puts an end to the discrepancy noted in relation to this topic.
Luxembourg Employment and HR

The Law of 8 April 2018 amends Article L. 121-6 (3) of the Labour Code defining the method of calculation of the daily salary payable by the employer in case of absence due to illness. This amendment puts an end to the discrepancy noted in relation to this topic. The purpose is to guarantee that employees receive full payment of their daily salary during their sick leave.

Employees who benefit from a predefined working schedule until at least the end of the calendar month covering their leave due to illness shall be paid their full salary plus all current bonuses and supplements, as well as any increases to which they would have been entitled if they had worked in accordance with their working hours scheduled for the period of incapacity for work.

Employees who do not benefit from a predefined working schedule until at least the end of the calendar month covering their leave due to illness, shall be paid a daily allowance equal to the average daily salary for the six months immediately preceding the occurrence of the illness or, failing that, the actual time worked for the employer.

Employees who are paid on a performance or task basis or whose salary is fixed as a percentage, by turnover or subject to significant variations, shall be paid a daily allowance equal to the average daily salary of the previous twelve months or, failing that, the actual time worked for the employer.

The average daily wage is calculated based on the employee's gross monthly wage. Final salary increases resulting from the law, collective agreement or individual employment contract, must be taken into account for each month when calculating sickness benefit. However, overtime, non-periodic benefits, bonuses or any incidental work costs incurred are not taken into account.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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