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    February 26, 2021
    Extension of Aid Measures to Companies in 2021

    With a view to maintaining jobs, the extension of aid measures to companies has now been approved covering both the progressive economic recovery measure and the simplified lay off regime for 2021.

    Thus, in situations where companies and establishments are subject to the duty to closure or suspension of activity, due to the pandemic, irrespective to the contribution payment by the employer to the remuneration compensation, the State will ensure that the employees covered by the extraordinary support for the maintenance of employment contracts, already provided for in Decree-Law No. 10-G/2020 of 26 March, often designated as lay off simplified regime, will receive 100% of the salary up to three times the minimum monthly guaranteed salary (MMRG).

    In addition, support for the progressive economic recovery will be extended until the first half of 2021 and now for the first time, to Directors and Administrators of Companies who perform management roles in companies, who pay social security contributions and have employees under their responsibility.

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    In this case, the payment of 100% of the remuneration up to three times the MMRG will also be ensured to employees covered, together with partial exemption of social security contributions of the employer.

    Finally it’s now established that employers can apply to simplified lay off regime, migrating directly from the progressive economic recovery measure, in case they are in situation of forced lockdown or suspension of activity.

    February 2021
    Edge International Lawyers

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