Newsflash Support for businesses within the context of the COVID-19 pandemic: 4-month extension of aid for SMEs and short-time working

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Date:
03 Feb 2022

Newsflash

In a press conference on 25 January 2022 an additional extension up to and including June 2022 was announced for short-time working, aid for costs that are not covered and recovery aid for companies in the HORECA, events, entertainment, culture and new car sales sectors.

  • New terms and conditions for the application of short-time working for the period between March and June 2022

The government has decided to extend the simplified structural COVID-19 short-time working scheme by 4 months, from March until June 2022 inclusive, for companies in vulnerable sectors that have a job retention plan.

Special terms and conditions apply to short-time working for February, March, April, May, and June 2022, as long as no new health restrictions are introduced after 28 February 2022.

For February 2022, the number of working hours not worked cannot exceed 25% of the company’s normal total monthly working hours, except for companies in the hotel and events industry, for which the rate is set at 50% for this month, as they are particularly affected by the pandemic crisis. For February, the rate for nightlife establishments is set at 100%.

For March and April 2022, the number of working hours not worked can in no circumstances exceed 20% of the company’s normal total monthly working hours if they are in a vulnerable sector, except for the hotel industry (40%).

For May and June 2022, companies will be able to apply short-time working for up to 10% of the normal total monthly working hours, except for the hotel industry (30%).

  • Extension and adjustment of aid to small and medium-sized enterprises

Recovery aid and support for costs not covered were introduced in December 2020 to support businesses particularly affected by the economic consequences of the COVID-19 pandemic.

The government has decided to further extend this recovery aid and support for costs not covered for another four months from March 2022 until June 2022.

The recovery aid will be extended for all sectors that are currently eligible (HORECA, events, entertainment, culture and new car sales). The total will be set at EUR 1,000 per employee or freelancer for March and April 2022 and at EUR 500 for May and June 2022. The monthly aid worth EUR 250 per worker on the short-time working scheme will be abolished.

As for support for costs not covered, only hotels and campsites will be eligible for this aid from March 2022. Up to 75% of these companies’ operating expenses will be taken into account to determine the costs not covered in order to calculate the monthly aid.