Salary subsidy and employee rights during the COVID-19
What is the salary subsidy
The Salary subsidy is a financial support from the government to help companies affected by the COVID-19 crisis that have lost at least 25% of their monthly income. This wage subsidy covers part of the employees' salaries. The payment of the salary subsidy is done by the SVb. Companies that are eligible and in need of financial support have to submit the monthly salary application and have to meet the set requirements.
What is paid to the employee according to the salary subsidy?
The government gives each employer a subsidy based on their monthly loss of income, to pay their employees up to 60% of their SVb salary, as indicated with the SVb and up to the SVb wage limit of monthly Afl. 5,850, - as indicated with the SVb.
Employers must cover 20% and employees must sacrifice 20%. In the event that an employer is unable to pay his 20% of the employee's salary, they must mutually agree to reduce the employee's work schedule (working time reduction) based on the 40% loss of income. The employee may only work for what he or she is paid, unless both parties agree otherwise.
Employers who receive the financial support are obliged to pay 60% of the employee's gross salary, as registered with the SVb. Since employers have to apply for subsidies every month, the salaries paid are based on the monthly loss of income and the economic activity is evaluated on a monthly basis. As soon as there is more economic activity, more work and also more income, each company has to adjust working hours and corresponding salaries.
Employers must always be able to prove that they have made agreements with the employees about their salaries. In the event that an employee feels uncomfortable signing an agreement, or wants legal advice before signing, he or she can call the Labor and Research Department at tel: 5237720 for advice, or send an e-mail to email@example.com.
Please note that if an employer does not apply for or is not eligible for the salary subsidy, the employer is responsible for paying the employee's salary. To reduce working time and salary, employers and employees must agree to this in a consultation.
For more information about the salary allowance, please contact the SVb Service Center by sending an email to firstname.lastname@example.org or by sending a WhatsApp message to +297 5272801.
Processing in Celery of salary subsidy
Gross payment of salary subsidy: duplicate payroll code 140 (payroll code amount):
Deduction of COVID-19 (amount of salary subsidy): duplicate wage code 260 (amount wage code):
Processing in Celery of 20% sacrifice
It is important that the contractual hours are paid out in full because the deduction concerns 20% of the contractual hours.
Deduction of COVID-19 (20% sacrifice): duplicatie wage code 260 (hourly wage code):