Resolution 1361: Labor Premium Subsidy

The National Government published Resolution 1361 which stipulates the steps and regulates the process for companies to access the subsidy to pay the labor bonus of employees.

The bonus subsidy applies to employees earning up to $1 million per month and will be of $220,000 to be provided by the Government. Companies that have had a decrease of at least 20% in their commercial activity may apply for the subsidy.

According to Decree 801 of 2020, companies with economic difficulties may negotiate with employees and agree to pay the premium in installments, without exceeding the month of December of this year.

With the aid of these subsidies, the national government intends to reach 4.2 million formal workers distributed throughout the national territory and the cost of the average is approximately $350,000 million.

Companies that want to be benefited by this aid must submit the same documents and fill out the same forms as those required to access the payroll subsidy that was delivered during April, May and June.

“Financial entities may not refuse to receive documents when the applicant does not have a payroll agreement subscribed with such financial entity, nor may they require the execution of any contract,” the regulations state.

The Resolution specifies that natural persons who have less than three employees reported in the Integrated Contribution Settlement Form (Pila) corresponding to the contribution period of February 2020 will not be able to access the subsidies.

Those who are politically exposed persons or are spouses, permanent partners or relatives in the second degree of consanguinity, first degree of affinity or sole civil partner of politically exposed persons will not be able to access the benefits either.

“Financial entities, when verifying the quality and identity of the person who subscribes the documents, must verify compliance with this requirement,” the text adds.

Likewise, natural or legal persons that form consortiums and temporary unions may not apply to the program with the workers that have been taken into account in the application of such consortium or temporary union.

Once the companies submit the required documents, together with the evidence of the decrease in income, the Ministry of Finance will select the companies that will benefit from the aid.

“The financial entities, at the time of application, must clearly indicate the procedure to be followed by the beneficiaries to reimburse the resources, if applicable. In any case, the financial entities must have at least one non-presential means in which the restitutions of the resources are received”, specifies the Resolution.

Source: Dinero