European government’s pay 80 % of salaries during Covid-19 pandemic

In Europe, nearly 39 million people are being paid by governments to work part time or not at all, a record level of support that will shape the region’s ability to claw its way out of the deep recession triggered by the coronavirus.

Like never before, European countries are relying on programs that encourage struggling companies to retain employees but reduce their working hours. The state then subsidizes a portion of their pay, in some countries paying as much as 80% of average wages.

Unlike the system widely used in the United States, where employers lay off workers who then need to apply for government benefits, programs such as Germany’s “Kurzarbeit,” which translates to “short-time work,” maintain the relationship between employers and their employees, helping work resume quickly once business picks back up.

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