Labour and social-security support | Storm “Kristin”

Decree-Law no. 31-C/2026 of 5 February has been published, establishing a set of exceptional and temporary support measures for the areas affected by storm “Kristin”.
From a labour and social-security perspective, the following measures for companies stand out:

1. Exemption from Social Security Contributions
An exceptional scheme is created providing for a full exemption from contributions for employers whose activity has been directly affected by the state of calamity (for up to 6 months, renewable for an equal period).
A partial exemption of 50% of the employer’s contribution rate is also provided for, for 12 months, for entities that hire workers who became unemployed as a result of the calamity.

2. Extraordinary Financial Incentive
Affected employers may be eligible for an extraordinary financial incentive to support the payment of wages and the maintenance of jobs (for up to 3 months, renewable).
The support is intended to ensure the worker’s normal gross remuneration (minus the Social Security contribution), up to a limit of 2× the national minimum wage (€1,840) per worker, plus support for meals and transport.

3. Simplified Lay-off
A simplified scheme for the reduction or suspension of employment contracts is created for employers in a business crisis resulting from the calamity, similar to what occurred during the COVID-19 pandemic.

This scheme allows recourse to the mechanisms set out in the Labour Code with the waiver of certain procedural formalities.

The measures are temporary in nature and territorially limited, applying to the municipalities covered by the state of calamity, and are subject to compliance with specific eligibility criteria and the maintenance of the support by beneficiary entities.