What is the aim of this support?

This support aims to ensure the continuity of income for people in a situation of particular economic deprivation caused by the COVID-19 disease pandemic.

 

Who can access this support?

Employees and members of statutory bodies who, as of January 1st, 2021, fall under the following situations are eligible:

a)       employees, including domestic service workers, self-employed workers and members of statutory bodies with management functions, whose unemployment protection benefit ends after January 1, 2021;

b)      Employees, including domestic service workers, economically dependent self-employed workers and members of statutory governing bodies who, for reasons not attributable to them, have become unemployed without access to the respective benefit and who have at least three months of contributions in the 12 months immediately prior to becoming unemployed;

c)       self-employed persons and domestic service workers on a daily or hourly basis who have at least three months of contributions in the 12 months immediately preceding the application for support and who show a shortfall in the relevant average monthly income of more than 40 % between the last available quarterly statement at the time of the application for support and the relevant average monthly income for 2019. Where this condition is not met for the year 2019, the last available quarterly statement at the time of application for this support and the relevant average monthly income for 2020 shall be taken into account;

d)      Workers in a situation of economic and social unprotection who do not have access to any social protection instrument or mechanism, who do not fit into any of the situations foreseen in the previous paragraphs and who are linked to the social security system as self-employed workers and maintain this link during the allocation of support and in the 30 subsequent months;

e)      Managers of micro and small enterprises, whether they have a stake in the company's capital or not, individual entrepreneurs, as well as members of the statutory bodies of foundations, associations or cooperatives with functions equivalent to those of the above, who are, in that capacity, exclusively covered by the social security system, and have at least three consecutive months or six months interpolated of contributions in the 12 months immediately preceding the application for support:

i) in a proven situation of total stoppage of their activity, or of the activity of the respective sector, as a result of the COVID-19 disease pandemic; or

ii) Through their own declaration together with a certificate from a certified accountant attesting it, in a situation of abrupt and accentuated drop of at least 40% in turnover in the thirty-day period prior to the application to the competent social security services, with reference to the monthly average of the two months preceding this period, or in relation to the same period in the previous year or, for those who have started their activity less than 12 months ago, the average of this period;

f)       Trainees under the professional traineeship measure, set forth in Ordinance no. 131/2017, of April 7th.

This support for employees, including domestic servants, shall consist of a differential benefit between a monthly reference amount of € 501.16 and the household's average monthly income per equivalent adult, whereby the amount of the support may not exceed the net income of the reference remuneration that the worker earned, attributed through a means test.

For the self-employed workers referred to in point b), this support corresponds to the amount of the shortfall in the average monthly relevant income between the last quarterly statement available on the date of the application for the support and the average monthly relevant income for 2019, and in the case of the workers referred to in point c) , to 2/3 of that amount, both capped at €501.16 and, in either case, the amount of the support may not exceed the average monthly relevant income for 2019.

For the employees referred to in paragraph a), the self-employed and members of statutory bodies with management functions whose activities are subject to the duty to close by legislative or administrative determination from a government source within the scope of the COVID-19 pandemic disease, during the first 6 months, the support is granted without verification of the resources condition, corresponding to the value of the unemployment benefit that they were receiving at the date of termination or to which they would be entitled, up to €501.16.

The employees referred to in paragraph a), may request an extension of the unemployment benefit for six months, on an extraordinary basis, as an alternative to the provisions of the previous paragraph.

For managers of micro and small companies, sole proprietors and members of statutory bodies, the support with the maximum limit equal to the value referred to in no. 3 of article 305 of the Labour Code (i.e. 3 x NMW) corresponds:

a) to the value of the remuneration recorded as the contributory base, in situations where this value is less than 1.5 IAS;

b) Two thirds of the value of the remuneration registered as the contributory incidence base, in situations where this value is greater than or equal to 1.5 IAS.

In this case, the support has a duration of 1 month, extendable monthly up to a maximum of 6 months.

The Extraordinary Income Support for Employees has a minimum limit of €50.00, with the exception of the following situations:

a) When the loss of income from work was greater than 1 IAS, the support has a minimum limit of 0.5 IAS;

b) When the loss of income from work is between 0.5 IAS and 1 IAS, the support has a minimum limit of 50% of the value of the loss.

 

Until when is this support paid?

The Extraordinary Income Support for Employees is paid until 28th February 2022, with a maximum period of 12 months for employees referred to in paragraphs a) and b) and 6 months, consecutive or interpolated, for other employees.

 

Is it cumulative with other benefits?

It cannot be combined with other unemployment benefits, benefits for cessation or reduction of activity, or compensation for salary due to suspension of the contract.

Employees, including domestic servants, self-employed workers and members of statutory bodies with management duties who are entitled to unemployment social benefit receive an extraordinary supplement that corresponds to the difference between the amount of that benefit and the amount to which they would be entitled from this support measure.

 

What is the nature of the social support measures in response to the pandemic?

The support paid directly to employees by social security as part of the exceptional and temporary measures in response to the pandemic disease COVID-19 are, for all purposes, considered social security benefits, except exceptional family support for employees and exceptional family support for the self-employed.

The support provided for in the additional social support line for artists, authors, technicians and other cultural professionals is equivalent to social security benefits.

 

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This information is being updated on a regular basis.

All information contained herein and all opinions expressed are of a general nature and are not intended to substitute recourse to expert legal advice for the resolution of real cases.