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Through the Law 2060 of 2020, the Colombian Congress modified the Program of Support to the Formal Employment (PAEF) and the Program of Support to the Semester Bonus Payment (PAP).  Below, we include the main changes.

A. Formal Employment Support Program (PAEF)

1. Term

PAEF will be in force until March 2021 and will have a total duration of 11 months.  Law 2060 of 2020 complements Decree 639 of 2020 and the regulations adding to it.

2.Beneficiaries
Associated Work Cooperatives and Autonomous Equities* may also be beneficiaries of the Program.

* Autonomous Equities will not be required to have a mercantile registry, as stipulated in Article 2 of Decree 639 of 2020. Instead, they must provide their NIT and be income tax filers.

3. Employees on whom the PAEF will be paid to the employers
The number of employees shall be those reported in the Integrated Social Security Contribution Form (PILA) of the period immediately prior to the application month. Employees shall also meet the following conditions:
  • Employees shall correspond with at least 50% of the ones reported in the PILA of February 2020.
  • The employees’ number shall not be greater than the one reported in the PILA of February 2020.   
4. Amount
General rule. PAEF is a monetary support whose value will be up to 40% of the monthly minimum statutory salary (Col. Pesos $351,000) for each employee. 
  • Exception 1. For beneficiaries whose activities are part of the tourism, hotel and gastronomy, artistic, entertainment and recreation sectors, the amount of the PAEF they will receive will be up to 50% of the monthly minimum statutory salary (Col. Pesos $438.901) for each employee. 
  • Exception 2. When within the employees there are one or more women, the amount of the PAEF will correspond to the number of male employees multiplied by up to 40% of the monthly minimum statutory salary (COP $351.000) , plus the number of female employees multiplied by up to 50% of the monthly minimum statutory salary (COP $438.901).
* The two exceptions may not be applied simultaneously. 

5. Inspection period – Pension and Payroll Tax Management Unit (UGPP)
It will be up to 4 years.

A. PROGRAM OF SUPPORT TO THE SEMESTER BONUS PAYMENT – PAP 

1. Term

The PAP will correspond to a refund of the December semester bonus, which will be paid out in the first quarter of 2021. Beneficiaries will be able to apply in the month of December 2020.

2. Beneficiaries
Autonomous Equities* may also be beneficiaries of the Program.

* Autonomous Equities will not be required to have a mercantile registry, as stipulated in Article 2 of Decree 639 of 2020. Instead, they must provide their NIT and be income tax filers. 

3. Employees on whom the PAP will be paid to the employers
The number of employees shall be those reported in the Integrated Social Security Contribution Form (PILA) of December 2020. Employees who will be considered for the PAP shall also meet the following condition:
  • To have been employees reported on the PILA for the months of October and November 2020.
4. Inspection period – Pension and Payroll Tax Management Unit (UGPP)
It will be the same as for the PAEF.
 
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