REDUCTION OF SALARIES FOR REDUCED ACTIVITY – COVID 19

REDUCTION OF SALARIES FOR REDUCED ACTIVITY – COVID 19
08/04/2020 No Comments Sem categoria JA

SUPPORT MEASURE AGAINST COVID-19

This measure should not be confused with the proposed loan to pay up to 2 minimum salaries.

The reduction may be 25%, 50% or 70% and remain in effect for 90 days.

The MP provides that the employment of the worker who has the reduced working hours must be maintained for a period equal to that of the reduction.

For workers who receive up to three minimum salaries, the agreement to reduce hours and salaries can be made by individual agreement.

For those who receive between three minimum salaries and two maximum INSS basis (R $ 12,202.12, reference value), the reduction in working hours and salaries will have to be made by collective agreement, since in this range the compensation of the unemployment insurance portion does not compensate for the whole salary reduction.

Above R $ 12,202.12, the current labor law already authorizes an individual agreement to reduce working hours and salaries.

For companies with gross revenues of up to R $ 4.8 million, the government will pay 100% of the unemployment insurance amount for these workers, even for workers who are not entitled to unemployment insurance.

For companies with revenues of more than R $ 4.8 million, the company will be required to pay a compensatory aid of 30% of the employee’s salary and the government provides 70% of the unemployment insurance amount.

How are the payments:

• 25% cut in salary: receives 75% of salary + 25% of the unemployment insurance share

• 50% cut in salary: receive 50% of salary + 50% of the unemployment insurance share

• 70% cut in salary: receive 30% of salary + 70% of the unemployment insurance share

• Suspension of the employment contract: receives 100% of the unemployment insurance portion (except in the case of a company employee with gross income greater than R $ 4.8 million – in this case: receives 30% of the salary + 70% of the unemployment insurance)

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