The mega package implementation can now begin

Today, a law has entered into force to help businesses and individuals affected by the epidemic of the new coronavirus. The measures are worth three billion euros and will be valid until the end of May, perhaps a month longer. If the situation improves, the Government may also propose the early termination of the law.

For the companies that have laid-off their employees or will do that due to the epidemic consequences, the state will help by paying for the workers’ compensation and social security contributions.

The state will also settle pension and disability insurance contributions in April and May for private sector employees who work during the epidemic. In both cases, the exceptions are the banks and the insurance companies.

The law foresees the payment of a crisis allowance for over-exposed persons in the fight against the epidemic. While it is a bone of contention in the public sector, it is set at 200 euros in the private sector. In return, the state will pay for the contributions for pension and disability insurance for the workers of these companies.

All sick leaves during the epidemic from day one will be reimbursed by the health insurer instead of the employers.

The self-employed, religious institution workers and farmers will receive assistance in the form of a monthly basic income of 350 euros for March and 700 euros for April and May. In April and May, they will not have to pay their social security contributions.

The pensioners with the lowest pensions will receive a one-time solidarity allowance, which will vary between 130 and 300 euros, depending on the amount of the pension. All full-time students and recipients of financial social assistance will receive 150 euros by 30 April.

If the students are unable to fulfil their study obligations due to the effects of the crisis, their status will be transferred to the next academic year.

The chapter on taxes states that entrepreneurs and businesses do not have to pay an advance on personal income tax or corporation tax. Cadastral income is lowered and more measures are planned to help farmers.

The state will guarantee for the obligations of the borrowers who, due to the epidemic, will be granted a one-year deferral of loans under the emergency law, which has been in force since the end of March. The Government wrote in the law that the banks would charge interest on the deferred portion of the principal.

The measures also extend to the public sector, including a 30% reduction in salaries for officials, with the exception of judges and mayors, and the possibility of fixed-term employment until the end of September without a vacancy announcement.

Public services that are not provided during the epidemic, such as day-care, will not have to be paid for.

In order to ensure compliance with the measures taken to stem the spread of the virus, the law gives police officers some additional powers. Among other things, they will be allowed to warn and punish, block the roads and temporarily restrict the movement of persons, as well as access sensitive personal data.


Source: STA,

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