Today the Royal Decree-Law 8/2020 of 17 March was approved, adopting extraordinary urgent measures to address the economic and social impact of COVID-19. At Confialia, business advisors, we have prepared a summary to make it easier for our clients to read.
200,000 million euros (almost 20 per cent of Spanish GDP) will be mobilised so that companies and the productive fabric as a whole feel protected. Of this, 117 billion will be entirely public and the remainder will be complemented by the mobilisation of private resources.
During this time, companies will not pay Social Security contributions, so that they do not lay off workers. The exemption is total if the company has less than 50 workers and 75% if it has more than 50 workers.
Extraordinary benefit for cessation of activity for self-employed workers whose activities have been suspended or whose turnover has fallen by 75% compared to the average of the previous six-month period. It will be valid for one month and is one of the extraordinary emergency measures to deal with the economic and social impact of COVID-19.
All persons affected by Temporary Redundancy Proceedings (ERTE) will be entitled to unemployment benefit, even those who were not entitled to it because they did not have sufficient contribution time.
Moreover, this time of benefit will not count towards unemployment afterwards. In other words, these people will not have exhausted their unemployment benefit, and if they are made redundant in the future, they will start collecting it from scratch.
Specific benefits for permanent, part-time and cooperative workers with regard to unemployment benefits.
Families are also covered by the plan for extraordinary emergency measures to cope with the economic and social impact of COVID-19.
Moratorium on mortgage payments for people whose income has been reduced or who are unemployed due to the Coronavirus.
600 million euros are to be allocated to basic social benefits, "with special attention to the elderly and vulnerable". Protection of water supplies, electricity and telecommunications services willalso be extendeduntil 17 April 2020.
The social bonus is extended until September
Relaxation of the spending rule so that local councils can use their surplus if they invest it in social services, care for dependent persons, and all kinds of social problems associated with the coronavirus. We are talking about 300 million euros of investment.
Extraordinary appropriations for the Ministry of Science and Innovation, for scientific research on Coronavirus