Companies that use recovery support, a measure that followed the lay off simplified, they have to pay the Christmas subsidy in full, but Social Security support will arrive in 2021, according to a clarification provided today.
In an informational session online organized by the Social Security Institute (ISS), in partnership with the Directorate-General for Employment and Labor Relations (DGERT), the jurist Alexandra Marcelino explained that the worker with reduced hours under the new extraordinary support for the progressive recovery of the activity “entitles to full Christmas subsidy”.
"If the subsidy payment date coincides with the period of application of the support, the value of the Christmas subsidy is reimbursed by the Social Security, in the following terms: one twelfth of half of the compensation for each month of support attribution », said the jurist.
"The employer pays the remaining amount to ensure the full Christmas allowance," he added.
The payment of the contribution of the Christmas subsidy by Social Security "will only be made after the application of the support depending on the number of months of allocation", said Alexandra Marcelino, adding that this payment "will only be made after December 31, 2020".
Workers covered by the reduced hours are also entitled to receive the entire holiday allowance, being able to book and take holidays during the period in which the company is benefiting from the support.
"The time of reduction of the normal working period does not affect the right and duration of the vacation period nor does it affect its appointment and the respective enjoyment, in general terms, not implying the suspension of support", said the ISS lawyer.
The new support for the recovery, which followed the lay off simplified, is aimed at companies with a drop in turnover equal to or greater than 40% and varies according to the drop in turnover.
contrary to lay off simplified, which ended in July for the vast majority of companies, the new support does not provide for the suspension of employment contracts, but only the reduction of working hours.
Companies in a crisis situation due to the Covid-19 pandemic can thus, between August and December, reduce working hours, having to pay the hours worked in full, except for those with a drop in turnover equal to or greater than 75%, which they are entitled to 35% support on the hours worked.
Workers also receive compensation for hours not worked, which will be financed 70% by Social Security and 30% by the company.
This compensation for hours not worked corresponds to two thirds of the normal gross salary in August and September and to four fifths between October and December and has a maximum limit of three minimum wages (1.905 euros).
According to the Government, this means that workers receive at least 77% of their normal gross pay in August and September and at least 88% between October and December.
In the case of an employer with a break in billing equal to or greater than 40%, the reduction in hours per employee can be a maximum of 50% in August and September, and 40% from October to December.
On the other hand, companies with a break equal to or greater than 60% can reduce working hours up to 70% in August and September and up to 60% in October, November and December.
For companies with a break in billing equal to or greater than 75%, in addition to the contribution by the Social Security on hours not worked, companies receive an additional 35% support for hours worked, which will be paid in September, according to the Government.
The support also provides for exemptions or discounts on the Single Social Rate (TSU), depending on the size of the company, but only on compensation for hours not worked.
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