Advantia (06.05.2020) In the case of the contributions of salaried persons, the government and the company proportionally assume the employer's part of the contribution of the general branch. Discharges due to isolation or diagnosis due to COVID-19 are covered with 100% of salary from the first day in the case of health personnel, and 66% from the first day in the case of other professionals. In the case of the self-employed, they can benefit from a 50% reduction in the contribution to social security or even its suspension (in which case the Government assumes 10% of the contribution in the general branch, in a that health benefits are assured).
In the case of the contributions of salaried persons, the government and the company proportionally assume the employer's part of the contribution of the general branch. Discharges due to isolation or diagnosis due to COVID-19 are covered with 100% of salary from the first day in the case of health personnel, and 66% from the first day in the case of other professionals. In the case of the self-employed, they can benefit from a 50% reduction in the contribution to social security or even its suspension (in which case the Government assumes 10% of the contribution in the general branch, in a that health benefits are assured).
Complementary economic measures to face the effects of COVID
May 6, 2020
After the first economic measures approved on 23 March, Andorra has just approved a second package of aid and benefits to complement and reinforce the initial measures.
These modifications are intended to protect jobs as much as possible, preserve the productive fabric and promote measures that guarantee a state of well-being. These measures are applied under the principles of joint responsibility and proportionality.
Here are the main novelties:
Measures in labor matters
The temporary suspensions of temporary contracts (STCT) and the reduction of working hours (RJL) in salaried persons are approved . Companies that have had their activity suspended by government decree, as well as those that are subject to a guard system, are eligible for these measures. Companies that, even being authorized to open, demonstrate a 50% drop in turnover in the period from April 1 to 30, 2020 compared to the previous year, can also join.
In the case of the self-employed , a monthly benefit of 1,083.33 euros gross is approved in the event of having their activity suspended.
Paid leave is maintained to take care of children under 14 years of age or with disabilities who do not have relatives up to the second degree of consanguinity or affinity who can care for them (except grandparents). Both parents must be in this situation or be single-parent families.
Social Security measures
In the case of the contributions of salaried persons, the government and the company proportionally assume the employer's part of the contribution of the general branch.
Discharges due to isolation or diagnosis due to COVID-19 are covered with 100% of salary from the first day in the case of health personnel, and 66% from the first day in the case of other professionals.
In the case of the self-employed, they can benefit from a 50% reduction in the contribution to social security or even its suspension (in which case the Government assumes 10% of the contribution in the general branch, in a that health benefits are assured).
Measures regarding leases and bank credit instruments
A reduction of 20% is established in the rent of the houses and the period of rent reduction in the commercial premises is extended according to the following sections:
- If the activity has been open, reduction of 80% (previously it was 50 %)
- If the activity has been on guard duty or permanence or suspended, reduction of 100% (instead of the previous 80%)
At the time of resuming activities, commercial rents will be regularized as follows:
- First month after resumption for activities that had been open: 50% reduction
- In the case of activities that had been on guard duty and permanence: reduction of 80% the first month after resuming activity and 40% the second month.
- For companies whose activity had been suspended: reduction of 100% the first month after resuming activity, 50% the second month and 25% the third month. Shortfalls
are established in home mortgage payments when the installment plus basic household supplies exceed 35% of the household income. The rescue of private pension plans is also allowed for a maximum of the amount of the minimum wage on a monthly basis.
Measures in fiscal and tax matters
Finally, the preparation of a new law is commissioned before May 15, which proposes the reduction of the salaries of public officials and the country's institutions, as well as the containment of public spending of the government budget.
All measures are few to try to mitigate the effects of the global COVID-19 pandemic. Andorra is proving to be up to the task by implementing new measures to try to protect the country's business fabric (made up mostly of SMEs and the self-employed) as well as workers in sectors such as tourism and hospitality, which will undoubtedly be some of the hardest hit. We move on!