Federal Government will pay your Salary: Employment and Income Preservation Program

the program of Preservation of Employment and Income (BEm), better known as project to reduce working hours and suspension of the employment contract, will return in 2021. Project created by the federal government, through MP 936, in 2020, guaranteed protection against mass unemployment, which would be caused by the covid-19 pandemic and the policies of lockdown.

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In that regard, in the year of 2020, 10 million jobs have been protected, at a cost of 33 billion reais, withdrawn from public coffers. In the year 2021, many companies continue to have problems returning to work, mainly shops, bars and restaurants, because the pandemic has not slowed down, on the contrary, every day it makes more victims.    

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Therefore, the government made the decision to return with the program, and edit the final terms, to launch a extension in the year 2021, to protect workers and entrepreneurs from even greater damage to the economy. With that in mind, today we are going to explain how the program will work.

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How does the program work?

This program includes two support options, one reduction of working hours, and other suspending the employment contract. In the case of companies with gross revenue of up to 4.8 million, the benefit base is made on the unemployment insurance limit, at the time this value was R$ 1,813.03. In the case of suspension of the employment contract, the federal government, covers the full benefit amount. In the case of a reduction in the working day, the company covers part of the value, while the government pays the rest of the salary.

Employment and Income Preservation Program (BEm)

In both options, the worker has job stability, for the period equivalent to that of the reduced or suspended contract (provided he is not fired for just cause).

  • Suspension of the employment contract: In this case, the beneficiary will receive from the federal government, 100% of the unemployment insurance installment, which varies between R$ 1,045 and R$ 1,813.03. Except for companies that earn more than 4.8 million, in this variable the government pays 70% of the amount, and the company pays 30% of the salary;
  • Journey reduction in 70%: Company pays 30% of the salary, and the government pays 70% of the unemployment insurance portion;
  • Journey reduction in 50%: Company disburses 50% of the salary, and the State disburses 50% of the unemployment insurance portion;
  • Journey reduction in 25%: Company pays 75% of the salary, and the federal government pays 25% of the unemployment insurance portion.

It is worth noting that no employee can receive less than 1 minimum wage.

When the Job and Income Preservation program will you come back?

The government intends to relaunch the program, later this month, at the moment, the release of the program, is bumping into public accounts, due to the fiscal consequences of the measure. Most likely, the program will be extended through extraordinary credit.

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In case of doubt, or for more information, you can contact us through the website of Federal Savings Bank.Another option is to call 0800 726 0207, or access the Cashier.  

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