PRESS RELEASE - 2nd General Assembly Prioritizes 77-Day Carence Reform and Tax Justice for Independent Workers
- Clara Moraru
- 12 hours ago
- 3 min read
Luxembourg, 26 March 2026
PRESS RELEASE
2nd General Assembly Prioritizes 77-Day Carence Reform and Tax Justice for Independent Workers
At its 2nd General Assembly on 25 March 2026, Union des Indépendants Luxembourg unanimously resolved to launch a structural reform campaign targeting Luxembourg's social security system for independent professionals.
The Union's primary focus for 2026 will address critical inequalities that disproportionately affect the nearly 30,000 independent workers in Luxembourg, with the elimination or significant reduction of the 77-day carence as the central priority.
"Independent workers today face challenges fundamentally different from those of the 1970s," said Clara Moraru, President of Union des Indépendants. "Yet our social security system was designed 50 years ago, specifically for employees, where independent workers were later added, but with rules that make no sense for how we actually work."
The best example is the 77-day carence, a waiting period during which independent professionals receive zero income support when they fall ill, even though they pay both part of the social security, the employee and the employer’s part.
Employees are protected from day one, the employer maintaining their salary, and after 77 days, social security takes over. Their income is never interrupted. In contrast, independent professionals get zero income support for 77 days. Bills continue, but earnings stop. They have no employer to maintain salary. Full financial risk is absorbed alone.
"The government's official justification is: 'This period corresponds to the employer's obligation to maintain salary for employees,'" Moraru explained. "But even when we have no employees and pay our contributions for both the employer and the employee, we receive the protection of neither. For a self-employed worker earning €36,000 annually, losing 77 days of income during illness can mean losing €2,000–€3,000, money many simply don't have."
The 77-day carence is just one symptom of a larger problem: systematic exclusion of independent workers from social justice.
Recent government tax reform introduced bonuses for employees (profit-sharing bonus, young employee bonus, housing/rent bonus), and none is available to self-employed workers.
Entrepreneurial finance programs exist on paper, but getting real, usable capital for a micro-business is nearly impossible.
Unemployment benefits are systematically refused to a majority of self-employed. For example in 2024, nearly 60% of requests from self-employed were refused by ADEM.
In addition, 46% of Union members report high income insecurity as their top challenge, and self-employed workers show biological markers of chronic stress, with 45% of European self-employed reporting workplace factors negatively affecting mental wellbeing.
2026 Campaign Priorities of the Union of Independent Workers
The Union has announced three key demands:
Priority 1: Eliminate the 77-Day Carence – consider alternative models, e.g. reduce carence to 7–14 days, establish a state-supported safety net, or create a mandatory income replacement fund.
Priority 2: Tax Justice for Independent Workers - demand inclusion in government tax bonuses currently reserved for employees only, advocate for progressive tax structure reflecting income precarity, ensure government tax policy no longer systematically excludes self-employed
Priority 3: Transparent Communication on Social Contributions: require government to show full picture: employee part, employer part, state contribution, enable taxpayers to see that independent workers bear disproportionate burden.
A Call for Structural Reform
"Independent professionals are not a niche," Moraru stated. "There are 29,383 self-employed persons in Luxembourg – the vast majority solo self-employed with no employees. We contribute millions to your economy.
You cannot fix structural inequality with PR or pilot projects. You fix it with structural reform. We need a social security system that protects solo self-employed workers the same way it protects employees. This matters for economic resilience. This matters for social cohesion."
The Union's 2026 agenda is backed by the 2026 Global Entrepreneurship Monitor. The data is sobering: just under 10% of Luxembourg adults are starting or running a business, and fewer than 4% own established ones. For every established business owner, more than 2 people are in early-stage phases that may never reach stability.
The government narrative says Luxembourg is a "top ecosystem with excellent support." But the data tells a different story: Luxembourg's National Entrepreneurial Context Index score in the 2026 GEM published in February is 4.4 out of 10 (down from 5.0 in 2022). Only 3 out of 13 framework conditions reach sufficient levels. Critically, on Ease of Entry – Market Dynamics, Luxembourg ranks 53rd out of 53 economies globally – the worst ranking of any country.
About Union des Indépendants
Union des Indépendants is the only trade union in Luxembourg dedicated exclusively to independent professionals. Founded in 2024, it represents nearly 1,700 members (out of approximately 30,000 independent workers in Luxembourg) – freelancers, solo self-employed workers, micro-entrepreneurs, and small business owners across diverse sectors.
Our Mission is to defend the rights and interests of independent workers, connect them in community, and empower them to thrive.
Our membership profile:
66% are solo self-employed (no employees)
20% have employees (small businesses)
14% are part-time or aspiring independents
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