Covid-19 – New measures to support employees and companies – What applies to suspensions

The companies that can now suspend 100% or 25% of their employees

The Ministries of Finance, Development and Investments, and Labor and Social Affairs announced a package of three additional support measures for employees and businesses to address the economic impact of the Covid-19 pandemic in January.

The measures are as follows:

1. Extension of temporary suspensions of employees with special purpose compensation to additional sectors, by delimiting a percentage of the employed staff that may be suspended.

From 1/1/2022 until 31/1/2022, only companies in the following sectors have the possibility to temporarily suspend 100% of their employees:

  • Nightclubs and Bars
  • Concert halls and professions related to music.

It is recalled that employees who are temporarily suspended from an employment contract are entitled to special purpose compensation, in proportion to the period they are suspended, estimated at an amount of 534 euros per month.

For the above period of time, the full insurance contributions, calculated on the nominal salary, are covered proportionally from the State Budget.

1.a. From 14/1/2022 until 31/1/2022, the companies that can suspend 100% of their employees will be the following:

  • Performing arts and theaters
  • Venues for events and show rooms
  • Organizing weddings and events
  • Playgrounds

1.b. From 14/1/2022 until 31/1/2022, the following companies will have the possibility to suspend at least 25% of their employees and at least one employee :

  • Restaurants and cafés
  • Catering services
  • Hotels
  • Travel agencies and reservation services
  • Cinemas
  • Organization of conferences and trade fairs
  • Gyms
  • Sports education and sports activities
  • Dance schools
  • Physical well-being services
  • Amusement parks and theme parks
  • Casinos

The cost of extending the measure is estimated at 30m euros for the remainder of January.

2. Special program to support companies in selected sectors that are significantly affected by the Public Investment Program

Eligible sectors include, but are not limited to:

  • Organization of conferences and trade fairs
  • Events organisation
  • Catering services
  • Dance schools
  • Nightclubs

Conditions of application: Reduction of turnover over 50% for the years 2019 and 2020.

Amount of aid: 8% on the turnover of 2019. Maximum aid: 400,000 euros.

The cost of the measure is estimated at 42 million euros, with funding from the NSRF-REACT EU.

3. Suspension of the regulated debts payment of the January 2022 installment to the tax administration of companies, that are significantly affected, and employees whose employment contract is temporarily suspended

  • The companies that are significantly affected are given the possibility to suspend the payment of the January 2022 installment of regulated debts to the tax administration and its repayment is postponed to the end of the current regulation.
  • For the employees throughout the territory whose employment contract is suspended, the possibility of suspension of the payment of the January 2022 installment of regulated debts to the tax administration is provided and its repayment is postponed to the end of the current regulation.

The cost is estimated at 8 million euros.

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