ARCHIVED - ERTE pandemic furlough schemes in Spain prolonged until 30th September
The government aims to return to normal employment conditions this autumn
A last-minute agreement has been reached between the Spanish government, trades unions and representatives of the business community to prolong the ERTE furlough schemes which have been operative since the early stages of the coronavirus pandemic, extending the validity of the temporary paid redundancy situation from the end of May until 30th September.
Approximately 558,000 people in this country are still affected by ERTE schemes, receiving a proportion of their salaries while not working due to the businesses in which they are employed being forced to operate at lower than usual levels due to the pandemic. At the same time, employers’ social security contributions are reduced in order to make it possible for the employees to remain on the books, helping to contain the increase in unemployment which has been caused by coronavirus since early last year.
The intention, according to José Luis Escrivá, the Minister for Social Security, is for this to be the last prolongation of the ERTE program, and for the situation to return to “normal” during the autumn of 2021, but in the meantime the aim is to provide every incentive possible for businesses to retain the staff they employed prior to the outbreak of the pandemic.
Among the terms agreed upon in the prolongation of the ERTE schemes is the stipulation that vulnerable businesses with fewer than 50 employees will pay only 5 per cent of the standard social security contributions for workers they take off the ERTE scheme. For those who remain on the scheme the contributions are set at 15 per cent in June, July and August, and 30 per cent in September.
Those with more than 50 employees will pay 35 per cent until the end of August and 40 per cent in September.
At the same time, the list of “vulnerable” sectors has been modified: added to this category are businesses involved in clothing and accessories, trading in tea, coffee, cocoa and spices, and photography, while those removed from the list are those concerned with graphic design, photographic and optical equipment, computer sales, other IT products and special transport companies.