Update of the support program for the payment of the employees service bonus
By means of Resolution 1361 of 2020, the Colombian Ministry of Finance defined the methodology, process, terms and conditions of the Support Program for the Payment of the Employees’ Service Bonus (PAP).
Below you can find the relevant aspects:
- AMOUNT: Number of employees multiplied by COP $ 220,000 (approx. USD $60).
- REQUIREMENTS: Comply with the same requirements and submit the same documents to the Employment Support Program -PAEF.
- FINANCIAL ENTITY: In the event that the potential beneficiary is also applying to the PAEF Program, the application process for the PAP must be carried out before the same financial entity and through the same application form provided by the UGPP.
- METHOD TO CALCULATE 20% INCOME DECREASE: The potential beneficiaries must demonstrate the need for the Governmental contribution certifying a decrease of 20% or more in their income.
For this purpose, the provisions established for the PAEF must be met, as follows:
- The decrease must be evidenced when comparing the income of the month immediately prior to that of the request for the contribution with the income of the same month of 2019; or
- The decrease must be evidenced when comparing the income of the month immediately prior to that of the request for the contribution with the arithmetic average of income for January and February, 2020.The certification of income reduction may be the same as the one presented for the PAEF.
CALENDAR: The application will be received by financial entities with the application of the PAEF in July. In accordance with Resolution 1242 of 2020, the application period began on July 8th and will end on July 16th, 2020.
CALCULATION OF THE PAP: For the determination of the amount of the PAP, the UGPP will count those employees approved under the PAEF program who also meet the following conditions:
Employees whose base contribution income (IBC) is at least one Legal Monthly Minimum Wage SMLMV up to COP 1 million;
Employees who have been paid social security during the months of April, May and June the entire month.
Finally, we highlight the fact that the application dates for the PAEF for the months of July and August 2020, are the following in accordance with Resolution 1242 of 2020:
- July 2020: From July 8th to July 16th.
- August 2020: From August 6th to August 20th