Points from the government business assistance program to pay salaries

The Government confirmed the creation of the Emergency Assistance Program for Work and Production to help companies pay salaries, as well as the granting of different benefits to guarantee its operation during the economic crisis, which was deepened by the coronavirus pandemic.

Through decree 332/2020, which will be published this Wednesday in the Official Gazette, it was indicated that the Program will consist of obtaining one or more of the following benefits:

– Postponement or reduction of up to 95% of the payment of employer contributions to the Argentine Integrated Social Security System.

– Compensatory Allocation to Salary, for all workers in companies with up to 100 employees. For employers of up to 25 workers: 100% of the net salary, with a maximum value of a valid Minimum Living and Mobile Salary, that is, $ 16,875. For employers of 26 to 60 workers: 100% of the net salary, with a maximum value of up to 75% of the current Minimum Living and Mobile Salary. And for firms with between 61 and 100 workers: 100% of net salary, with a maximum value of up to 50% of the current Minimum Living and Mobile Salary.

– REPRO Emergency Health Assistance for workers in a relationship of dependence on the private sector on employers exceeding 100 workers. The worker benefit will have a minimum of $ 6,000 and a maximum of $ 10,000.

– Comprehensive unemployment benefits system: workers who meet the requirements set forth in Laws 24,013 and 25,371 will access an economic unemployment benefit in accordance with the considerations stipulated in article 11 of this decree. What this article establishes is that the amounts of economic unemployment benefits will be raised, during the period defined by the Head of Cabinet, to a minimum of $ 6,000 and a maximum of 10,000 pesos.

As stipulated in the DNU, in order to access one or more of these benefits mentioned, the company must be able to verify that:

-Your economic activities were critically affected in the geographical area where they are carried out.

– Has a significant number of workers infected by COVID 19 or who are in compulsory isolation or with a work exemption due to being in a risk group or care obligations of a relative related to COVID 19.

– Credits a substantial reduction in its sales after March 20, 2020.

In addition, it was detailed that those subjects that perform the activities and services declared essential are excluded from the benefits of this decree., that the Head of Cabinet of Ministers will establish objective criteria, activities and other elements that allow determining the assistance to be received by the beneficiaries. Subjects who meet the requirements will access one of the following benefits:

– Postponement of maturities for the payment of employer contributions to the Argentine Integrated Social Security System.

– Reduction of up to 95% of employer contributions to the Argentine Integrated Social Security System accrued during the month of April 2020 for employers who do not exceed 60 contracted workers (those who exceed it, must promote the Crisis Preventive Procedure).

Also:

– The AFIP will arrange special maturities for the payment of employer contributions.

– During the period established by the Head of Cabinet of Ministers, the amounts of economic unemployment benefits will rise to a minimum of $ 6,000 and a maximum of $ 10,000. It will be the competence of the Minister of Labor, Employment and Social Security to modify the operation of the Comprehensive System of unemployment benefits.

– The employers reached by the benefits must accredit to the AFIP, the payroll of the personnel reached and their involvement in the activities achieved.

– The Ministry of Labor, Employment and Social Security will consider the information and documentation sent by the company, may reveal additional data and may arrange for evaluation visits.

– The Head of the Cabinet of Ministers shall have the power to extend the validity of the measures of this decree and define the economic activities critically affected by the Health emergency.

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