The Inner Cabinet, extended to include the 10 parties supporting the Federal Government, adopted a series of support measures on 6 June.
These include, among others:
- the extension of the corona parental leave until 31 August 2020;
- the extension of temporary unemployment due to force majeure corona until 31 August 2020;
- the possibility for employers to grant employees a consumption voucher of € 300 for the purchase of goods and services in the hospitality sector, the cultural sector, etc.; this cheque is 100 % deductible and tax-free;
- a partial and temporary exemption from payment of withholding tax for the severely affected sectors, including the hospitality sector, that had to resort to temporary unemployment. This exemption is in principle valid for three months (June, July and August) and will cover 50 % of the withheld withholding tax.
These measures have yet to be transposed into legal or regulatory texts. We will keep you updated as soon as we have more details.
The ten parties have also agreed to continue negotiating additional support measures that may complement these measures.