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As Tom Tomilin, one of the authors of the project, said, the current model of supporting the downtime subsidy encourages the economy not to function.
“Last year we saw that problem and that’s why the so-called ‘post-traditional’ support model was created. More than 30 thousand. companies used it, 611 million. euros, ”he said.
Delfi recalls that subsidies paid to companies after downtime have attracted the attention of the Seimas Audit Committee. It turned out that the support was distributed to companies that were not necessarily facing difficulties and the Employment Service identified cases of abuse. You can read more about it here.
A draft prepared by the opposition proposes that employers who are included in the list of taxpayers affected by COVID-19 published by the State Tax Inspectorate be granted and pay a wage subsidy for up to 3 months: in the first and second month 70 percent of the monthly minimum wage approved by the Government, and in the third month, paying 50 percent. of MMA.
“The use of this measure would be linked to specific commitments to maintain employment, and the subsidies would be more intensive for small and medium-sized companies and with high added value,” says the explanatory memorandum of the project.
Employers are claimed to be included in the list of activities focused on the production of advanced technologies, knowledge-intensive services, the achievement of the objectives of the European Union Green Course and social dialogue, approved by a joint order of the Minister of Social Security and Labor and the Minister of Economy and Innovation, would receive 100 percent and 70 percent. MMA subsidies.
“The changes will help ensure a steady return to the economy for companies affected by COVID-19 (about 70,000) and a return to work for workers currently in downtime (about 120,000),” the authors said. .
Fix the gap
Mr. Tomilin also said that the amendments were aimed at correcting an error in the law in the public sphere, when it is due to the formality of 10 thousand. Business licensees lost access to self-employment benefits because their activities take place in days instead of months.
For example, Delfi wrote about a situation where a hairdresser or market vendor did not receive a 260 euro grant because he did not have a business certificate on the day the quarantine was announced. The authors of the project propose to waive this requirement.
The law would maintain the requirement that the person claiming a € 260 benefit must have worked for 3 of the 12 months before the quarantine was announced.
The project also proposes to reimburse the costs of testing participants in vocational training for COVID-19 and extend the payment of the job search allowance until September 30, 2021.
Prices do not specify
The explanatory memorandum establishes that many of the proposed measures are short-term and have no fiscal obligations.
“Loan funds should be used for one-off recovery measures. The exact need for funds will be determined by the Ministry of Finance when the government submits a revised draft budget for 2021 to Seimas,” the document reads.
The former Minister of Social Security and Labor, a member of the Seimas, Linas Kukuraitis, said that the proposed model is now more modest than last year.
“But we see a great need to support downtime businesses,” he said.
For his part, the deputy of Seimas Lukas Savickas stressed that, like last year, there would be additional support for green companies and high added value.
“The OECD’s Lithuanian Economic Review, published in November 2020, recommends continuing to provide temporary support to households and businesses to help reallocate resources to viable businesses,” he added.
L. Savickas also pointed out that a large part of the measures related to the management of the consequences of the pandemic provided for in the Employment Law have expired on December 31, 2020.
The project is also supported by members of Seimas Guoda Burokienė, Aušrinė Norkienė, Rima Baškienė, Laima Nagienė, Laima Mogeniėnė, Jonas Jarutis and Rimantė Šalaševičiūtė.
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