3 New Support Measures for Companies and Workers not Benefiting from the Simplified Lay-Off
Index
1. Extraordinary Incentive to Business Activity Standardization
a) What does it mean in practice?
Payment of 1 or 2 minimum wages per worker.
b) Who is it meant for?
Companies that leave the lay-off and resume their normal activity.
c) What are the application conditions and how can I apply?
You can see all the conditions for your application to be valid here and all the steps on how to make your application in this guide.
If you still have questions we recommend you watch the video below published by the AIMMAP Legal Department:
2. Mechanism to Support Progressive Resumption of Activity
a) Reduction of working hours
To whom does it apply? – Companies of a private nature, with a drop in invoicing equal to or above 40%, verified in the full calendar month prior to the respective application, vis-à-vis:
- the same month of the previous year
- the monthly average of the two months prior to that period
- the average monthly billing between the beginning of activity and the penultimate complete month
How is it applied? – It is assigned according to the companies’ billing breakdown:
- Break equal to or greater than 40% = reduction of normal working period (PNT) up to 50% (in August and September) and up to 40% (in October, November and December)
- Break equal or superior to 60% = reduction up to 70% (in August and September) and 60% (in October, November and December)
If you still have questions we invite you to watch this short video with the most relevant information:
b) Reduction or exemption from TSU
- What is the TSU? – The Single Social Security Tax (TSU) is a social security (SS) contribution paid by workers (11%) and companies (23.75%). However, this reduction or exemption only applies to compensation.
- What is the Retributive Compensation? – It is the amount paid to workers to compensate, in part, the loss of income for hours not worked, due to the reduction of hours. Since most of this is actually guaranteed by Social Security, the benefit to workers is small.
- What will be the practical impact of this reduction? – On the big companies: 50% reduction on social security contributions until September. In Micro, Small and Medium companies: Exemption until September (then a 50% reduction).
- To whom is it destined? – To the companies that benefit from the progressive support to the activity recovery.
c) Support to companies for the payment of Christmas subsidy
Unlike the proposal presented to the social partners, in which the SS contributed half of the salary compensation, the amount of support for the Christmas subsidy payment will be lower: it is equal to the twelfth of half of the salary compensation, multiplied by the months of support.
To learn more about this mechanism click here.
3. New 1000 Million Line of Credit
a) Who is it intended for?
Micro and small companies, which are not based in tax havens, which have not yet benefited from state guaranteed loans.
b) How is it applied? – There are some rules to be taken into account:
Quotas for what each bank can lend, depending on the size of its credit portfolio.
Companies are obliged to use the money immediately.
c) When will it be available?
These are the new measures to support companies and workers with the almost generalized aim of the simplified lay-off.
It is necessary to emphasize that you should not expect these supports to be the solution to the challenges that the pandemic has brought to your business. These measures only give you an oxygen balloon for a few more months, so it is important to start thinking (and operating) as soon as possible how you can adapt to these times in order to maintain (or increase) the competitiveness of your business during and after the outbreak.
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