The second law of urgent measures for the Covid-19 crisis was passed in the Consell General.
· The measures implemented in the first law have been tweaked and other measures have been added to improve them. These are mainly aimed at measures of an economic nature. The approval of the Co-Princes, which is expected to take effect in May, is required for the the new law to enter into force.
· These new measures are complemented by others and the purpose is to guarantee jobs … It is anticipated that the temporary term will last until December 2020, if not, it will have to be reviewed.
· The measures involve 3 areas: measures for employees, measures for the self-employed and measures for companies.
· The most significant change is a two-way process: the regulation of the mechanism for temporary suspension of work and the reduction of working hours, which affects not only companies but also self-employed workers. Some of the new proposals are:
The government allocates about 120 million to guarantee salaries
4 levels are planned from the minimum wage to 50% for amounts of more than 4,000 euros
The reduction by 20% on home rent and suspension of mortgage payments.
Temporary suspension of work, the company which wants to do this, will have to consult the representatives of the employees, if any, and present why the company has been forced to submit the application.
· From the measures in the first package new measures are added re working hours of employees.
· They are one of the key groups in the Andorran business fabric, so the new package establishes special provisions designed for them.
· Benefit intended for those who have had to suspend their activity or are on emergency cases only or on duty.
· Government will assume 10% of the contribution in the CASS general branch
· Monthly benefit of € 1,083 until a volume of activity has been recovered and trading is on a 50%, 60% or 100% basis
· Reduction in the payment of rent and total suspension of mortgages and vehicles payments.
· 66% of income if you are a general worker, 100% if you are a health worker
· Suspension and deferral of taxes, fees and penalties. Soft credits at 0% interest
· The new law also includes actions to protect the business fabric, for those who have suspended their business or reduced their business volume.
· Temporary suspension of work (known as ERTO) or reduction of working hours.
· Subsidy for CASS contribution (15.5%) to employees who have stopped working due to this situation.
· Reduction in the rent of commercial premises, up to 80% if the activity is open and up to 100% if the activity has had to close
· Access to soft credits at 0% interest.
· Deferral and discounts of Andorra Telecom and FEDA
· Businesses wishing to receive help must apply by May 1 at the appropriate ministry.
· The reduction in working hours will not take place until the beginning of May and it does not mean that everyone suffers a reduction in work or a temporary suspension. It should be borne in mind that economic activities will gradually open up.
· Workers must receive their salary in full during the month.
· There will be a reopening of children’s day care system. The measures recommended by the Ministry of Health will be applied. The service is complementary to the school, not a substitute for schools. It is envisaged in the second package that those who do not have help to take care of their children and have to go to work can receive this ‘cay care’ help.