The federal government is once again extending temporary unemployment from corona to all businesses until March 31 next year. The Kern decided that on Friday morning.
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Via the system of temporary unemployment due to force majeure due to corona, companies that see their production decline can temporarily put their employees at home. They then fall back on unemployment benefit of 70 percent of their gross monthly salary, with a ceiling of EUR 2,754.76, and an additional allowance of just over EUR 5 per day from the NEO.
The regime applied to all companies during the first wave of the corona pandemic last spring, but it was scaled back to the most affected sectors in September. Temporary unemployment is now being extended again to all businesses, the federal government decided Friday. This will be the case at least until March 31, but the measure can be extended if necessary.
The relaxation of the temporary unemployment system is part of a raft of socio-economic support measures designed to drag workers, healthy businesses, vulnerable people and critical sectors through the second wave. A large part of this is an extension of the existing measures up to and including the first quarter of 2021. These include the VAT reduction on handles and mouth masks, the extension of free notarial powers of attorney, the tax exemption from subsidies by municipalities, cities and states, the increased investment allowance of 25 percent for SMEs, sole proprietorships and liberal professions, the double bridging right, the postponement of the payment of company contributions and social security contributions, the smoother access to artist unemployment, the premium of 50 euros per month for the most vulnerable and the freezing of the degressivity of unemployment benefits, although the latter will only apply until the end of this year.
Surcharge on top of the end-of-year bonus
The De Croo government is also introducing a whole battery of new measures. For example, the NEO will pay a supplement on top of the end-of-year bonus for employees who have been temporarily unemployed this year. Only those who have been at home for at least 52 days in the past year are eligible and will receive a supplement of 10 euros per day of temporary unemployment on top of those 52 days. In concrete terms, these people will receive at least 150 euros extra on the bill at the end of this year.
The government is also making an adjustment in the financing of holiday pay for the temporarily unemployed. The days of temporary unemployment will be equated to the days worked for the calculation of that amount.
Self-employed
The government is also making additional efforts for the self-employed, SMEs and companies. The exemption from the social security employer contribution for the third quarter of this year will be extended to other sectors than the sectors that were obliged to close. Companies that are directly dependent on those sectors, and that can demonstrate a turnover loss of at least 65 percent compared to last year, are now also granted the exemption. This concerns, for example, suppliers who mainly supply catering businesses. In addition, self-employed persons are given the opportunity to apply for a repayment plan to pay the deferred social security contributions, so that that amount is not deducted from the account in one go. The traditional bridging right will then be temporarily extended so that starters who have been active for six months – instead of a year as is currently the case – can use it.
Finally, the government is paying attention to the social consequences of the crisis. A task force for vulnerable groups will be set up with a budget of 75 million euros to take measures in consultation with the sector to support vulnerable people as much as possible. The government is thinking, among other things, of campaigns to make the various helplines, such as 1712, more known to the general public.
How much that entire package will cost the federal government is not clear, Prime Minister Alexander De Croo said at a press conference after the Kern. “The measures are temporary, but the cost will depend on how long the health situation remains difficult.”
The Prime Minister called on anyone concerned about the impact of the health crisis on the economy and public finances to especially follow corona measures. “We will never have a prosperous economy if the population is not healthy,” he said. Moreover, everyone can support the Belgian economy by ordering from local restaurants and shopping at local merchants. “That is one of the best economic support measures we can take.”
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Via the system of temporary unemployment due to force majeure due to corona, companies can temporarily put their employees at home. They then fall back on unemployment benefit of 70 percent of their gross monthly salary, with a ceiling of EUR 2,754.76, and an additional allowance of just over EUR 5 per day from the NEO.
The regime applied to all companies during the first wave of the corona pandemic last spring, but it was scaled back in September to only the most affected sectors. Temporary unemployment is now being extended again to all businesses, the federal government decided Friday. This will be the case at least until March 31, but the measure can be extended if necessary.
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