The Royal Decree-Law 35/2020, of December 22, was published in the Official State Gazette (BOE) on December 23, which includes new support measures for the tourism, hospitality and retail sectors, as well as measures for bullfighting professionals and artists in public performances, the minimum living income and the special unemployment subsidy.
We would like to inform you that Royal Decree-Law 35/2020, of December 22 (effective December 24), concerning urgent support measures for the tourism, hospitality, and retail sectors, was published in the Official State Gazette (BOE) on December 23. This Reinforcement Plan includes new measures aimed at alleviating the situation of businesses and self-employed individuals involved in these activities and addressing their fixed costs, such as salaries, rent, and tax payments, among others. The goal is to enable them to maintain their viability and avoid closure as a result of the pandemic. This plan also complements the aid already approved by various autonomous communities and municipalities
Among other labor measures, the incentives approved in September for sectors affected by the pandemic are being extended by expanding the catalog of ultra-protected sectors: wholesale trade of beverages, restaurants and food stalls, beverage establishments, and activities of botanical gardens, zoological parks or nature reserves.
Companies in these sectors will be exempt from paying part of the social security contributions that would accrue in the months of December 2020 and January 2021. In addition, they will be able to apply the 50% bonus to social security contributions for so-called fixed-term intermittent workers from April to October 2021.
Below is a summary of these labor and Social Security measures that come into effect on December 24, 2020.
- New social aid for the hospitality, tourism and retail sectors
Schemes (ERTEs). The exemptions of up to 85%, provided for in Additional Provision 1 of Royal Decree-Law 30/2020 on social measures in defense of employment, are extended to certain economic sectors, including the following subsectors, which now receive enhanced protection: Wholesale of beverages, restaurants and food stalls, beverage establishments, activities of botanical gardens, zoos and nature reserves, and gambling and betting activities. These activities are included in this Royal Decree-Law because, as of December 14, the coverage rate of workers still covered by ERTEs exceeds 15% of those registered under their corresponding National Classification of Economic Activities (CNAE) code, and their recovery rate since the beginning of May is less than 65%.
This measure applies to the months of December 2020 and January 2021 and its extension will be determined in the new social agreement that is being negotiated with unions and employers for all sectors protected by the ERTE.
Bonus for fixed-term intermittent contracts. The extension of the bonus for prolonging the period of activity of workers with fixed-term intermittent contracts is maintained exceptionally during 2021, in all autonomous communities and during the months of April to October 2021, in a complementary manner to the measure foreseen for the months of February, March and November in the Draft Law of the General State Budget for 2021, as well as maintaining the compatibility of these bonuses with the exemptions of Social Security contributions that may be applicable.
It will be a 50% bonus on employer contributions to Social Security for common contingencies, as well as for the joint collection concepts of Unemployment, FOGASA and Vocational Training of said workers.
These bonuses will be compatible with any applicable employer social security contribution exemptions, and the resulting amount from applying the exemptions and these bonuses may not, under any circumstances, exceed 100% of the employer contribution that would have been payable.
- Social measures for bullfighting professionals and artists in public shows
For 2021, they are exempt from proving compliance with the requirement of having provided services with minimum remuneration or participated in a certain number of shows, in order to remain included in the General Social Security Scheme.
- Special unemployment subsidy
The deadline for applying for the special unemployment subsidy regulated in art. 1 RDL 32/2020 of November 3, which approves complementary social measures for unemployment protection and support for the cultural sector, is extended by one month, from December 24, 2020, for those who had exhausted unemployment benefits between March 14 and June 30, 2020.
- Amendment to the General Social Security Law
A new Additional Provision 31 is added to the General Social Security Law (LGSS) limiting the scope of contribution refunds in cases where they arise from requests for changes or corrections to Social Security data submitted after the regulatory deadline. In such cases, only the amount corresponding to the three monthly payments prior to the date of submission of these requests will be refunded.
Transitional Provision 16 of the LGSS, relating to the contribution bases and rates and the protective action in the Special System for Domestic Employees established in the General Social Security Scheme, is also modified, so that the transitional period of application of the scale of contribution bases of said special system contemplated therein is extended until 2023 and which, according to its current wording, would end this year 2020, thus aligning the provisions of said transitional provision with the regulation on contribution bases and rates for the aforementioned special system contained in the Draft Law of the General State Budgets for the year 2021.
- Minimum Living Income
It is established that the autonomous communities may refer to the National Institute of Social Security and this may recognize the minimum living income benefit to the interested persons who give their consent to the autonomous community of their domicile to send the data necessary for the identification of said persons, the instruction of the procedure and the certificate issued by the autonomous community which will be sufficient for the managing entity to consider the benefits requested.
See: Plan to strengthen the hospitality, retail and tourism sectors (PDF)
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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