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If its subsidized by the government, how is it a paycut? Similar programs in the US exist, for example states paying a 50% unemployment payment for employees wh
by ac29 7y ago
If its subsidized by the government, how is it a paycut? Similar programs in the US exist, for example states paying a 50% unemployment payment for employees who have their hours cut by 50%. Its a win-win - companies effectively pay nothing to keep their employees at a full time salary for reduced hours, and the government avoids needing to pay out full unemployment benefits to laid off employees.
Edit: see this for an example of the program in California: https://www.edd.ca.gov/Unemployment/Work_Sharing_Program.htm https://www.edd.ca.gov/Unemployment/Work_Sharing_Program.htm
- Kiro 7y agoCan only speak for Sweden but you do need to take a paycut as well. In Swedish but you can see the table here: https://tillvaxtverket.se/om-tillvaxtverket/information-och-stod-kring-coronakrisen/korttidsarbete.html https://tillvaxtverket.se/om-tillvaxtverket/information-och-... For the 60% bracket the company reduces your working hours by 60% and you get a paycut of 7.5%. The government covers the difference, effectively reducing the cost for the company by 53%.