Luxembourg introduces strategic workforce planning program (« programme de gestion prévisionnelle de l’emploi et des compétences »)
A law of June 19, 2025, which comes into effect on June 28, (the “Law”) brings significant changes to the Luxembourg Labour Code, launching a strategic workforce and skills planning program aimed at helping companies and employees adapt to evolving market conditions.
In a fast-changing economy—driven by technological, environmental, regulatory, and societal shifts—this program is designed to future-proof both businesses and jobs.
The Law enables eligible companies to assess how their workforce needs may evolve and to invest in upskilling or reskilling employees whose roles are likely to change or disappear.
To be eligible, companies must:
- Have been active in Luxembourg for at least 3 years;
- Be headquartered in the Grand Duchy;
- Not be in financial difficulty.
Each application must contain documents in which the company (i) sets out a clear view of the structural trends in the economic market that will impact the company in the coming years, and of its strategic direction and (ii) demonstrates significant needs in terms of staff skills upgrading or requalification.
With the help of an approved consultant, selected companies carry out an internal assessment of their HR situation, identify major trends affecting their business, and determine which roles are likely to be impacted.
For each affected employee, i.e. “an employee with at least twelve months’ seniority, whose position is impacted by structural trends in the economic market, and who consequently needs requalification or skills upgrading of at least 120 hours’ training, in order to secure his or her employability within the company and beyond” the company develops a plan that includes at least 120 hours of training aimed at helping them remain employable, either within the company or elsewhere.
Training must be completed within 24 months and lead to either a formal qualification or a certificate of participation. The state co-finances both the training costs and part of the employee’s salary during training time.
The amount of support depends on the company’s size:
- Micro and small enterprises: up to 75% of consultancy costs and 50% of training expenses (max €7,500 per employee);
- Medium-sized enterprises: up to 50% of consultancy and training expenses;
- Large enterprises: up to 15% of consultancy and 40% of training expenses (max €6,000 per employee).
Wage compensation during training time can also be covered—up to 50% for smaller companies.
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