Government launches support for job retention

14.05.2021

The new Business Standardisation Incentive has just been launched by the Government, which prevents staff dismissals for nine months and provides a financial incentive per worker. The aim is to help companies maintain jobs. Applications are available from next week.

Companies that have used the simplified layoff or the extraordinary support to the progressive recovery (AERP) in the first quarter of this year can apply for this support. 

There are two types of support

If the support is requested until 31 May, companies have access to

  • 2 national minimum wages (equivalent to €1,330) per worker who has been covered by layoff or AERP (paid in a phased manner over six months)
  • 50% exemption from Social Security contributions during the first two months of the incentive
  • 2 national minimum wages, in case of micro enterprises (less than 10 workers) that in 2020 used the simplified layoff or the AERPA support of €1,995, in case of micro enterprises in a business crisis situation still in the coming month of June, that used the simplified layoff only in 2020 (and not in 2021) or the AERP.

If the application for support occurs after 31 May, companies have access to:

  • 1 national minimum wage (€665) per worker covered by layoff or AERP (paid in a phased manner over three months).

For nine months (the duration of the support and the following three months) collective dismissals, dismissals for termination of employment or for inadaptation are forbidden and companies are obliged to maintain the level of employment.

Source: Government portal