Today was approved the Royal Decree-Law 8/2020 of March 17, 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.
Companies
200,000 million euros (almost 20 % of Spain's GDP) will be mobilized so that companies and the productive fabric as a whole feel protected. Of this, 117,000 million will be entirely public and the remainder will be complemented with the mobilization of private resources.
Companies will not pay social security contributions during this period , in order to avoid dismissing workers. The exoneration is total if the company has less than 50 workers and 75% in the case of companies with more than 50 workers.
Extraordinary benefit for termination 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 urgent measures to face the economic and social impact of COVID-19.
Workers
All persons affected by Temporary Layoff Proceedings (ERTE) will be entitled to unemployment benefits, even those who were not entitled to it because they did not have sufficient contribution time.
In addition, this time of benefit will not be counted for unemployment later on. In other words, these people will not have exhausted their unemployment benefit, and if they are dismissed in the future, they will start collecting it from zero.
Specific benefits for permanent, part-time and cooperative workers with respect to unemployment benefits.
Families
The plan also includes extraordinary emergency measures to address the economic and social impact of COVID-19.
Mortgage payment moratorium for people who have reduced their income or are unemployed due to the Coronavirus.
600 million euros will be allocated to basic social benefits, "with special attention to the elderly and vulnerable people". Protection of water supplies, electricity and telecommunications services will also be extended until April 17, 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 dependency and all kinds of social problems associated with the coronavirus. We are talking about 300 million euros of investment.
Research
Extraordinary appropriations for the Ministry of Science and Innovation, for Coronavirus scientific research.