The Council of Ministers of Friday 9 March approved a new measure concerning the payment of the annual leave contribution for the hospitality sector and the sectors that are still closed.
It reads as follows:
"Since March 2020, as part of the fight against the spread of the coronavirus and to protect the health of our citizens, the hospitality sector has been closed twice, the first time between 15 March and 30 June 2020 and the second time from 16 October 2021. The sector is currently still at a standstill. It is undoubtedly one of the sectors most affected by the health crisis.
In view of the continuing health crisis, companies active in this sector are facing major economic difficulties. However, by 30 April 2021 at the latest, employers in this sector will normally have to pay the annual contribution to finance their manual workers' annual leave. This contribution amounts to 10.27% of the gross wages (increased to 108%) paid to the workers based on their actual time worked in 2020. A large number of employers in the hospitality sector will be unable to meet the payments of this annual contribution. In order to avoid insolvency situations and to protect employment in the hospitality sector, it is proposed for 2021 and with regard to workers active in the hospitality sector, to defer for six months:
- the time at which the debit note relating to annual leave is sent to the employers
- the time at which the amount of this debit note is due from the employers
- the time at which the amount of this debit note must be paid by the employers to the National Social Security Office (NSSO)
Employers in the other closed sectors will be able to apply, in a simple manner, for a repayment plan equivalent to a six-month deferment. This possibility will be clearly stated on the debit note sent. The NSSO is responsible for implementing this decision. The Minister of Labour will propose the necessary regulatory changes."
We will keep you updated as soon as we have more information on this subject.