Extraordinary financial incentive

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Applications are now open for the extraordinary financial incentive aimed at employers with the aim of supporting the normalization of business activity, that is, after the application of the so-called "simplified layoff" or the extraordinary training plan has ended. Find out more about this support.

Following the Economic and Social Stabilization Program (PEES), which provided for a set of new measures to support the normalization of business activity, Decree-Law No. 27-B/2020 of June 19 was approved (art. 4) and Order No. 170-A/2020, of July 13 , which implemented the new Extraordinary Incentive for the normalization of business activity .

In this new phase, more focused on economic recovery, the following support measures are available:

Simplified layoff - companies that remain closed by order of the kazakhstan whatsapp number database can continue to benefit from the simplified layoff regime .

Support for progressive recovery - companies that experience a drop in turnover equal to or greater than 40% can benefit, between August and December 2020, from a mechanism to support progressive recovery.

Extraordinary incentive for the normalization of business activity - companies that have benefited from the simplified layoff regime can now benefit from an extraordinary incentive for the normalization of business activity.

Extraordinary incentive for the normalization of business activity

What is the Extraordinary Incentive for the Normalization of Business Activity?
This measure is provided for in the Economic and Social Stabilization Program (PEES) and consists of providing support to employers during the phase in which their employees return to normal work and the normalization of business activity.

What is the purpose of this measure?
Its objective is to support the maintenance of employment and reduce the risk of unemployment for workers of employers affected by the business crisis as a result of the pandemic caused by COVID-19, by providing support to employers in the phase of their workers returning to normal work and normalizing business activity.


Who are the recipients of this measure?
Employers who have benefited from extraordinary support for maintaining employment contracts (simplified layoff) or the extraordinary training plan, under the terms set out in Decree-Law No. 10-G/2020 of 26 March, and are able to resume their normal activity.

What are the types of this Incentive?
a) Support in the amount of 1 Guaranteed Minimum Monthly Wage (RMMG) for each worker covered by the extraordinary support for maintaining an employment contract (simplified layoff) or the extraordinary training plan, paid in a single payment ;

or

b) Support in the amount of 2 RMMG for each worker covered by the extraordinary support for maintaining an employment contract (simplified layoff) or the extraordinary training plan, paid in phases in two installments of equal value to occur within the following deadlines:

1st installment paid within 10 working days from the date of communication of approval of the application for this support;
2nd instalment paid within 180 days from the day following the last day of application of the simplified Layoff or extraordinary training plan + right to partial exemption of 50% of the payment of social security contributions payable by the employer with reference to workers who were covered by the aforementioned support.
Important points to consider regarding workers covered by the 50% partial layoff
If the Layoff was longer than 30 days , the 50% reduction in the TSU, the employer's share, refers to the workers covered in the last month of application of this support.

When the last application of the Layoff occurred in July 2020, the workers covered by this support in the immediately previous month are considered.

Duration of application of this 50% reduction
In accordance with Decree-Law No. 27-B/2020, art. 4, no. 7, in the various paragraphs):

a) During the 1st month of granting this support - if it was granted after a simplified Layoff or extraordinary training plan lasting ≤ 1 month;

b) During the first 2 months of the granting of support - if it was granted after a simplified Layoff or extraordinary training plan lasting > 1 month < 3 months;

c) During the first 3 months of the granting of support - if it was granted after a simplified Layoff or extraordinary training plan lasting ≥ 3 months.

Obligations of employers who resort to this measure
Employers who resort to this measure are subject to the prohibition of carrying out collective dismissals, due to the elimination of a job position or unsuitability, and, cumulatively, in the phased payment method, the obligation to maintain the level of employment.

Cumulation of this support with the Support for progressive recovery
Employers who use the Extraordinary Incentive for the normalization of business activity cannot access the extraordinary support for the progressive recovery.

Partial exemption from payment of social security contributions
In addition to the amount associated with this support, there may also be another advantage - Partial exemption (50%) from the payment of contributions for which the employer is responsible for social security. This partial exemption applies to employers who have been granted this Extraordinary Support, when they opted for the second modality of this support - Support in the amount of 2 RMMG for each worker covered by the extraordinary support for maintaining an employment contract (simplified layoff) or the extraordinary training plan measures, paid in phases in two installments of equal value.