The glossary to understand and take action

Employers’ Mutual Insurance Scheme (MDE)

The Employers’ Mutual Insurance Scheme contributes to covering the cost of continued salary payments in the event of incapacity for work, under the applicable conditions. It is distinct from the CNS and the CCSS, even though their procedures are connected.

Administration ou organisme professionnel · Luxembourg Fiduciaries Editorial Team · Reviewed on

Understand the scope

Its role for your business

Reimbursement to the employer and the employee’s right to continued remuneration are not the same issue. The company must process payroll and the declarations required for the mechanism correctly.

In your file

When to contact them and what to prepare

Organise a reconciliation between absences, declared remuneration and reimbursements received. Errors in periods or data may create discrepancies that need to be explained. The rate and conditions must be checked for the situation concerned; do not reuse an old parameter without verification. For a self-employed person, voluntary affiliation arrangements require separate analysis.

A scenario to help you understand

Educational example

An SME continues to pay the remuneration of an absent employee and separately monitors the declarations and reimbursements corresponding to the relevant periods.

Fictitious situation, presented to illustrate the concept.

Prepare for what comes next

Points to check

  • Distinguer paie et remboursement
  • Rapprocher les périodes et montants
  • Vérifier les paramètres applicables

Connecting concepts

Terms to know as well

Continue with the concepts, contacts and procedures related to this topic.

Continuation of salaryContinuation of remuneration by the employer during an absence under the conditions provided for by the applicable rules.National Health Fund (CNS)The CNS is involved in health and maternity insurance in Luxembourg. For employers, it is notably a contact point in monitoring incapacity for work and benefits falling within its remit.Joint Social Security Centre (CCSS)The Joint Social Security Centre (CCSS) notably manages registrations and the collection of social security contributions within its remit.Employment contractThe employment contract governs an employment relationship, with the respective obligations of the employer and employee within the applicable legal framework.Occupational accident declarationThe accident declaration communicates to the competent body the circumstances of an event that may fall under accident insurance. It enables the case to be assessed without prejudging its recognition.

Put it into practice

Explore further with our guides

Practical guideEmployee illness: coordinating supporting documents, absences and payroll

Sources and verification

References consulted on 20 September 2026. Official procedures specify the applicable conditions and exceptions.

This guide explains a general process. The applicable rules depend on your situation; it does not constitute personalised advice. Report a correction.

A definition gives you a reference point. To examine your situation, clarify your question with a professional.