Government proposed significant increase in pandemic assistance

The government proposed a significant increase in pandemic assistance to companies starting in February. It expects monthly costs to increase by €40m (in December, the assistance came to €50m). Within the kurzarbeit scheme, the state will reimburse 100% of labor costs instead of the current 80%. The cap of €1,100 per worker monthly stays in place. Subsidies for companies with a drop in sales will increase to €330-870 per worker and month from the current €270-810. The assistance will apply to new workers, too. The upper limit for assistance to sole traders will increase from €315 to €360. The government also plans changes in rent subsidies―the subsidy will go directly to renters and will cover energies as well. The new assistance scheme will remain in place at least till June 2021.