With the economic and social emergency declared as a result of COVID-19, the Colombian government created the Formal Employment Support Program, PAEF, which will grant resources from the Emergency Mitigation Fund, FOME, to the beneficiaries of this, a monthly monetary contribution of State nature, and up to three times, in order to support and protect the country's formal employment.
This benefit seeks to help and protect employers' payment of wages to workers. To apply for this benefit, they must demonstrate the need for the state contribution certifying a decrease of 20% or more in their income, these certifications can be in the following ways:
1. The decrease in income must be evidenced when comparing the income of the month immediately prior to that of the contribution request with respect to the income of the same month of 2019.
2. When comparing the income of the month immediately prior to that of the request for contribution with respect to the average income of February and January 2020.
In this way, the UGPP ( National department of employment supervision ) has structured a form that contains the information that financial entities should ask those who want to apply for the benefit, the document must be completed in its entirety in the formats that each financial entity makes available.
It is important to note that whoever wants to access the benefit must also submit a certification of Compliance with requirements, which must be signed by the legal representative or natural person requesting and the tax auditor, or public accountant. Accompanied by the RUT (unique identification number).
The contribution that will be given to each employer will be calculated as follows, the number of employees multiplied by $ 351,000 COP, that is, three hundred and fifty-one thousand Colombian pesos for each employee.
