BEm 2021 aid should count on 4 million companies and workers

BEm 2021 aid should count on 4 million companies and workers
BEm 2021 aid should count on 4 million companies and workers
The maintenance and income protection program, better known as Well, will be renewed next week. The measure will cost R $ 10 billion to the public coffers and intends to serve 4 million workers in the new round of agreements and suspension of the employment contract.

This information was made available by the special secretary for Social Security and Labor, Bruno Bianco. According to him, the return of the program should be launched in the coming days, after the definition of the new conditions that are being analyzed by the President of the Republic, Jair Bolsonaro, together with the Minister of Economy, Paulo Guedes.

“The program tends to be exactly the same as last year. The first reason is that the program worked very well, so we don’t want to tamper with it. We also have a system developed for this program and businesspeople and employees have already become accustomed to the program ”, he commented.

The secretary also explained that the delay in renewing the BEm is due to the assessment of “several” fiscal points. “We have a tax issue to be assessed, we have a budget recently voted on, we have issues related to the ceiling and tax target,” he said.

Bianco also pointed out that the government is saving on the use of extraordinary credit to develop the measure. The funds would make it possible for program expenses not to be subject to tax rules, such as the Ceiling of Expenses.

According to the economics team, BEm helped maintain 11 million jobs for several workers, minimizing the number of layoffs in 2020. In addition, with the program’s adhesion, many companies were able to hire new employees even in the context of the economic crisis.

This year’s Emergency Employment and Income Maintenance Program will follow the same conditions applied in 2020. Such criteria enable the company to temporarily suspend the employment contract with the employee or to enter into an agreement for a reduction in wages and working hours varying from 25 %, 50% or 70%.

For the modality of working hours and wages, it is the company’s obligation to pay a part of the worker’s original remuneration and the government the rest. Depending on the type of agreement and percentage, the procedure will take place as follows:

  • Reduction of hours and wages by 25% – In this case, the company is responsible for paying 75% of the salary and the government the other 25%.
  • 50% reduction in working hours and wages – However, if the agreement is to reduce working hours and wages by 50%, both the company and the government must pay half of the employee’s full remuneration.
  • 70% reduction in working hours and wages – In the case of a 70% reduction, the company is responsible for paying 30% of the salary and the government for the other 70%.

Temporary suspension of the employment contract

When joining the temporary suspension of the employment contract, the amount of the employee’s salary will be according to the company’s billing.

For example, if the company is small and had a turnover of up to R $ 4 million and 800 thousand in the year 2020, the worker will receive 100% of unemployment insurance, however, if the company is large and earned more than R $ 4 million and 800 thousand in 2020, the worker must receive 70% of unemployment insurance and the company is obliged to supplement with the remaining 30%, according to the worker’s nominal salary.

Can the reduction in hours and wages be refused?

As in 2020, the employee is not obliged to accept the suspension or reduction of hours and wages proposed by the employer, since the agreement is made with the consent and interest of both parties. This measure was clarified in last year’s Provisional Measure text.

However, in the event of rejection, the situation must be well analyzed. Given the current scenario in which mass layoffs and corporate bankruptcy occur, denying making the deal can have consequences.

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