Wednesday, April 14, 2021

Government admits to resuming support that pays two minimum wages after lay-off

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Tiago Petinga / Lusa

The Minister of Labor, Solidarity and Social Security, Ana Mendes Godinho

At Wednesday’s social consultation meeting, the Government was available to recover the Extraordinary Incentive for Standardization of Activity, which grants support of up to two minimum wages per worker after the lay-off simplified.

The newspaper Public, who heard a government source, advances this Thursday that the recovery of the Extraordinary Incentive to Standardization of Activity, which ended the candidacies on December 31, is part of the reinforcement of support to companies affected by the confinement and, for now, it has nothing to do with the eventual opening plan of the economy.

This support came into force in the summer of last year with the aim of supporting the maintaining employment and reducing the risk of unemployment in companies that resorted to lay-off simplified or the extraordinary training plan.

With this incentive, it was support is given to the employer in the return phase of its workers to the activity.

In this version of the support, the employer could opt for a support in the amount of the minimum wage – 635 euros – paid for each worker who was in lay-off or by paying two minimum wages – 1270 euros – in a phased manner over six months.

Last year, 52,411 incentive applications, covering more than 458 thousand workers.

If the support rules are maintained, the incentive will have as universe the 68 thousand companies that in the last weeks of January resorted to the lay-off simplified

With the simplified lay-off regime, which can be done through the suspension of the employment contract or the reduction of working hours, the employer supports only 19% of the employees’ salary, being exempt from the Single Social Rate (TSU).

Companies with a break in sales, on the other hand, can continue to support the progressive recovery and maintain the possibility of reduce the schedule to 100%. There is a 50% reduction in TSU for micro, small and medium-sized companies (MSMEs) and the managing partners of these companies that are in support of the progressive recovery are now covered.

At this Wednesday’s meeting, the Government also pledged to present, by the end of March, a document that will serve as the basis for a possible agreement in the area of professional qualification.

The social partners regretted that a text for negotiation has not yet been submitted and warned that the design of support for companies whose costs increased with the increase in the minimum wage to 665 euros in 2021 has not yet been released.

Maria Campos Maria Campos, ZAP //

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