Government announces new support measures for employees and companies

Extraordinary Support for Progressive Resumption was announced by the Government as a set of measures to succeed the simplified lay-off. 

From August until the end of the year, workers and companies that have been affected economically by the new coronavirus (Covid-19) will receive support that varies according to the fall in turnover and the period of the year.  These measures are primarily aimed at supporting the maintenance of jobs in companies that have at least a 40-percent drop in turnover. 

Extraordinary support for workers

In August and September, the worker receives at least 77% of the pay, and between October and December, at least 88% of the pay. This figure may be higher depending on the number of hours worked.

Extraordinary support for companies 

Companies that maintain a drop in turnover of 75% or more, the Social Security will co-pay 35% of the hours worked. 

In terms of contributions, between August and September, Micro, Small and Medium-Sized Enterprises maintain the exemption on compensation, followed by a 50% reduction between October and December.  For large enterprises, they will have a 50% reduction from August to September, and from October to December they will no longer have a reduction in social contributions.

Companies will be able to apply for this support through Segurança Social Direta (Direct Social Security).

To learn more, please consult the Frequently Asked Questions page of the Progressive Resumption of Activity Support Mechanism.

Source: Portal do Governo (Government Portal)