The Cape Verdean social security spent 25.5 million euros in the simplified ‘lay-off’ regime for the Covid-19 pandemic in two years, benefiting almost 1,600 companies, according to official data compiled this Thursday by Lusa.
According to a report from the National Social Security Institute (INPS) with data at the end of 2021, in the two years the measure was in force, As a whole, the entity paid more than 2,799 million shields (25.5 million euros), “to 18,382 policyholders of 1,582 companies.”
The last exceptional dismissal regime in Cape Verde ended on December 31, 2021 and has not been extended again by the Government.
The peak of workers in “layoff” was registered in May 2020, with more than 16,050, a month after the approval of the measure by the Government to alleviate the consequences of the general closure of companies and economic activity, to stop transmission of Covid-19.
In the last quarter of 2021, the measure cost the coffers of the INPS around 191.7 million shields (1.8 million euros), the lowest quarterly value since its regulation, already in the prescription period of its application to companies in the tourism sector.
According to the legislation that regulated this measure, the fourth period of the simplified regime for the suspension of the employment contract, which began on January 1, 2021, maintained the payment of 70% of the gross salary to workers, but reduced the burden on companies in 35% to 25% of this total, with the INPS being responsible for co-participation with 45%.
With this government measure, payment was initially guaranteed, from April to December 31, 2020, in equal parts (35% of income) by the employer and the State, through the INPS, the institution that administers pensions and worker contributions.
In addition, companies could resort to part-time work for employees in a situation of “dismissal”, with access “proportionate and adapted to the type of contract”, according to the legislation in force at that time.
Source: Observadora
