Government announces conditional subsidy for minimum wage workers

Submitted by socpro on Tue, 07/14/2020 - 17:59
measures summary

Government will cover 50% of the June "prima" ("Christmas bonus") for workers who receive up to a minimum wage.

To access this subsidy, companies must certify that during the pandemic their income has decreased by at least 20%. The other 50% of the premium must be paid by the employer, however, companies may reach an agreement with the employee to pay in installments.

The "prima de servicio" ("Christmas bonus") is a benefit to which all employees with a fixed or indefinite term contract are entitled. It is the value corresponding to 30 days of salary per year, which is given in two payments, one in the middle of the year (before June 30) and the other in December.

Adjusted on 05/29/2020: Extends the subsidy of 50% of the June prima to workers who earn up to one million pesos.

Measure date
Regions / Country