Half an hour of work, state subsidized wage replacement



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The coverage with a state wage subsidy of employees that with the gradual opening of operations will be called to work on one new work environment with flexible and reduced hours is the plan in which the government is working, in its context next phase of financial support measures workers and companies affected by the pandemic.

According to the newspaper “Ta Nea”, the Government plan which aims to keep jobs “press” in German model of “Kurzarbeit”, The state employee support program on which half of German companies depend, unable to meet their financial obligations due to the coronation crisis. The Kurzarbeit is the program first launched by Germany during the financial crisis of 2008-2009 and allows companies to reduce the hours of their employees without having large losses in their wages, since the state agrees to pay a large part of their wages.

The subsidy of workers wages The Minister of Finance announced yesterday that they will work part-time. Christos Staikouras, who told (RealFM) that if an employee works fewer hours, the state with their help SURE European Program will come to cover the difference. That is, the state will come to supplement the wages of workers who enter flexible forms of employment, such as part-time or shift work, to limit the loss of their wage income.

According to the information, the state subsidy could cover it 40% – 60% of losses due to salary reduction due to the corresponding reduction in working hours. With a corresponding subsidy, part of the employees’ insurance contributions could be covered.

For job rotation

In the first phase, the state subsidy to cover the loss of workers’ wages is considered activated to the extent new shift, which is in force and allows 2 weeks of work per month with half the salary. With “Security personnel” only companies currently operating can operate today are affected based on KAD and as long as they are affected by the relevant CAD with a time horizon until September 20. The measure is applied with a job retention clause and stipulates that the employer can employ the employee for at least 2 weeks a month, continuously or intermittently. It is sufficient that at least 50% of company personnel enter this way of organizing work every week.

The state wage subsidy measure for those who will work part-time is expected to be included in the “SURE” community employment program. According to the calculations of the Ministry of Finance, Greece can claim and receive between 1,400 and 1,500 million euros of the total of 100,000 million euros that the EU estimates to allocate to the Member States in a favorable way. Loans The goal is to contain layoffs and keep state-subsidized jobs in the model: reduced hours of work and subsidies to replace reduced wages. It is not ruled out that the measure will be implemented until the end of 2020, always depending on the evolution of the crown crisis, since much will depend on the possibility of a second wave of pandemics in the fall.

Subsidy

OR Christos Staikouras reported yesterday that the subsidy of 800 euros Employees who are temporarily suspended from employment will be adjusted to the new data on the gradual lifting of restrictions in the economy. “When an entrepreneur asks their employees to be returned, the company will pay them,” the minister said, adding that “for those companies that do not open or for the employees for whom the suspension will not be suspended, the state will be there to help. ” In fact, as he said, the companies have asked to return to work 20,000 employees for whom the suspension of the work contract is suspended.

It should be noted that the Ministries of Labor and Finance have already announced possibility of extending suspensions of employment contracts, but in a different way from that applied during the first phase of the pandemic. The measure is expected to be implemented not in 45 days, but as long as the business remains closedAs by design, specific sectors of the economy will gradually unfreeze. According to the scenarios that are being developed, the possibility of a new suspension of contracts will not last 45 but 30 days and, consequently, it will be reduced from 800 to 534 euros, since the 800 euros cover a period of 45 days.

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