COVID-19 - Some Legislative Facts from Around the Globe!

08 April 2020

With COVID-19 continuing to cause disruption to businesses and economies all over the world, we are seeing more and more countries providing rescue schemes to companies and employees alike. 

Some of the highlights are summarised below: 


  • All or part of tax and social security payments can be deferred for 3 months with no penalties incurred. 
  • A one-off “Macron Bonus” (Prime Macron) can be paid to employees free of tax and social security contributions providing the employee’s salary is below 3 SMIC (average previous 12 months prior to the payment) and the employer must put in place a profit-sharing arrangement to remunerate employees. 
  • Partial Activity for reduction of normal business hours – the company to pay compensation equal to 70% of employee gross salary. Companies will be reimbursed for the gross salary up to €6,927.00.
  • Employees paid up to the minimum wage (SMIC level) are 100% compensated.
  • Maximum number of hours that can be compensated is 1,607 hours per employee up to 31st December 2020. 



  • Compensation that can be claimed is determined by the company turnover loss with a maximum claim of 90% of wages; 
    • Turnover loss of 100% - compensation of 90% of wages 
    • Turnover loss of 75% - compensation of 67.5% of wages 
    • Turnover loss of 50% - compensation of 45% of wages 
    • Turnover loss of 25% - compensation of 22.5% of wages
  • Based on the application, the Employee Insurance Agency will pay an advance of 80% of the expected compensation with the difference paid once the actual turnover loss is determined. 
  • Companies can apply for a 3-month payment extension for all income and payroll taxes with no penalties incurred.

  • 75% Emergency Wage Subsidy 
  • Eligible employers, with a 30% revenue loss during the eligible periods, will be able to apply for the 75% Emergency Wage Subsidy for up to 12 weeks. 
  • The subsidy amount for an eligible employee would be the greater of: 
    • 75% of the amount of remuneration paid, up to a maximum benefit of $847 per week. 
    • The amount of remuneration paid, up to a maximum benefit of $847 per week or 75% of the employee’s weekly remuneration prior to the crisis, whichever is less. 

  • The employer’s social security contributions rate has been reduced by 4%, from 14.1% to 10.1% for March and April. 
  • Redundancy: 
    • The employer’s period of pay at the start of redundancy is reduced from 15 days to 2 days. This means that the unemployment benefits to be paid by the Norwegian Labour and Welfare Administration (NAV) sooner. 
    • The 3-day waiting period before the unemployment benefit starts for redundancies is revoked. 
    • The requirement for reduced working hours for entitlement to unemployment benefits during redundancy has changed from a minimum of 50% to a minimum of 40%.

If you would like any further information on the points mentioned above or any other country please contact Katie Fullerton or your usual AAB contact.

To find out more about the AAB Payroll & Employment Taxes team, click here


If you are unsure about what Government support package is available to your business, we are here to help. We have created a simple toolkit that cuts through the noise and makes you aware of exactly what help is available to you. It takes a few minutes to fill out and you can find it on our COVID-19 Information hub

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