Certificate(s) of compensation for your employee(s)

Introduction

As an employer, you have received a letter in French accompanied by one or several certificates of compensation for your employee(s).

This page allows you to consult the German and English translations.

The letter

Concerns: Certificate(s) of compensation for your employee(s)

 

Mr/Mrs [Name],

Enclosed you will find the compensation certificate(s) of your employee(s) mentioned.

What is it about?

The certificate of compensation shows the amount of cash benefits that your employee(s) received from the CNS during the period from 1 April 2020 to 30 June 2020 under the transitional measures decided by the government [1].

What to do now?

Due to a different method of calculation, the benefits may be lower than the salary normally received by the employee. The gross amount paid directly by the CNS is therefore to be compared with the gross amount you would have paid to your employee for the relevant period under the continued pay mechanism ("Lohnfortzahlung").

If the employee should have received more than the compensation paid by the CNS, you are required to regularise this situation and pay the difference to the employee. In view of the closing of the financial year 2020, we recommend that you make this adjustment before the end of the year.

Yours sincerely

 

[1] Grand-Ducal Regulation of 3 April 2020 derogating from the provisions of Articles 11, paragraph 2, 12, paragraph 3, 14, paragraph 2 and 428, paragraph 4 of the Social Security Code and L.121-6, paragraph 3 of the Labour Code (règlement grand-ducal du 3 avril 2020 portant dérogation aux dispositions des articles 11, alinéa 2,12, alinéa 3, 14, alinéa 2 et 428, alinéa 4 du Code de la sécurité sociale et L.121-6, paragraphe 3 du Code du travail)

Certificate of compensation

CERTIFICATE OF COMPENSATION

It is certified that the insured person mentioned below received cash benefits (for sickness or accident) from the National Health Fund (Caisse nationale de santé) between 1 April 2020 and 30 June 2020 as part of the exceptional measures decided by the government to combat COVID-19.

This certificate is drawn up in order for the employer to compensate any differences between the amount of the cash benefits paid by the CNS and the amount due under the continued pay mechanism ("Lohnfortzahlung").

INSURED'S NAME

[INSURED'S NAME]

INSURED'S NUMBER

[INSURED'S NUMBER]

EMPLOYER'S NAME

[EMPLOYER'S NAME]

EMPLOYER'S NUMBER

[EMPLOYER'S NUMBER]

MONTH

DAYS COMPENSATED BY THE CNS


GROSS AMOUNT COMPENSATED BY THE CNS

04/2020

   

05/2020

   

06/2020

   

TOTAL

   

Luxembourg, dd.mm.yyyy

Certificate produced electronically without a signature

Explanations

Why did the CNS directly cover all incapacities for work for the months of April to June 2020?

As part of the fight against the Covid-19 pandemic, the Government has taken a number of measures, including direct payment of financial compensation (cash benefits) by the National Health Fund (CNS) from 1 April 2020 to 30 June 2020.

Indeed, during this period, the mechanism of continuation of wages by the employer in the event of sickness/accident ("Lohnfortzahlung") was exceptionally suspended and replaced by direct coverage from the CNS of any incapacity to work due to sickness and accident.

Why have some insured persons been able to see differences from their normal salary?

Differences in salary are possible because CNS's cash benefits are calculated differently from the employer's continuation of salary.

Why does the CNS send this certificate of compensation?
In order to rectify any differences, the employer must settle the differences by comparing :
  • the statement that the employer issues providing details of the remuneration that they would have paid under the continued pay mechanism
  • this certificate of compensation for the payments made by CNS during the months concerned.
What to do if there is a difference?

Only if the employee should have received an amount greater than the compensation paid by the CNS, the employer is required to rectify this situation and pay the difference to the employee. In view of the closing of the financial year 2020, we recommend that employers rectify this situation before the end of this year.

How does the CNS calculate cash benefits for sickness?
On the basis of article 10 of the Social Security Code and articles 178 to 185 of the CNS statutes, the CNS sickness benefits are comprised of:
  • the employee's highest basic salary during the 3 months preceding the start of payment of the cash sickness benefits by the CNS;
  • the average of the supplements and accessories (e.g. productivity bonuses) of the remuneration forming part of the bases for the 12 months preceding the month before the occurrence of the incapacity for work.
How does the CNS calculate the cash sickness benefits if the incapacity does not cover a full month?

If the incapacity for work does not cover a full calendar month, the amount of the basic monthly cash sickness benefits is divided by the number of days in the calendar month concerned (30 days for April, 31 for May, etc.) and multiplied by the number of days of incapacity for work resulting from the medical certificate(s) and employers' declarations made to the Joint Centre of Social Security.

Example: If the number of days of incapacity for work in April is five days, the financial compensation payable by the CNS is equal to 5 x 1/30th of the basic monthly benefits calculated.

The certificates were drawn up on dd.mm.yyyy on the basis of the databases used by the CNS (for certificates of incapacity for work) and the Joint Centre of Social Security (for employers' declarations) of that day.

Payments of cash benefits from the CNS will no longer be adjusted.

The CNS is therefore not involved in the regularisation procedure described in this letter, apart from providing this certificate.

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