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The new Government Labor Wage Subsidy Plan came into effect at midnight and will continue to provide payroll support until the end of March 2021.
It will replace the current Temporary Wage Subsidy Plan, which currently supports the salaries of nearly 370,000 employees.
The Temporary Wage Subsidy Plan, which was launched last March, helped many companies survive the Covid-19 pandemic.
Its replacement, the new Employment Wage Subsidy Scheme, will be welcomed, although the criteria are stricter.
The Temporary Wage Subsidy Plan required a drop in billing of at least 25% to qualify.
He paid up to € 410 a week in grants per worker earning less than € 76,000 a year and delivered the real money within 48 hours.
However, companies that benefit from the new scheme must have a drop in turnover of at least 30%, and the maximum subsidy rate is significantly lower, € 203.
Employers are concerned that there is a delay of up to six weeks in receiving subsidy payments, which could put pressure on cash flow.
In addition, they will also need to show that they are tax compliant before they can benefit from government assistance.
It remains to be seen how many employers will eventually move to the new scheme and how many jobs it will save.
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