Government to pay sick leave for Covid-19 cases

Government aims to cut red tape by altering labor regulations
Photo: Marcos Corrêa/PR

The Economy Ministry is set to announce a measure relieving the pressure on employers whose staff have been forced to take leave due to coronavirus infections. The plan is for the government to bear the costs of employee sick pay for the first 15 days, a period which is usually paid for by companies. After the 15th day, the government will continue to provide sick pay as normal.

The measure will only apply to those who have Covid-19 diagnoses, and the maximum sick pay will be proportional to that established in the individual government pension framework.

The Economy Ministry is expected to announce the measure this afternoon.

On Thursday, the Social Security Institute (INSS) had already announced that sickness benefits would be cleared without the need for medical inspections. This change will affect all of those on medical leave from work, not just Covid-19 patients.

As we explained in today’s Daily Briefing for premium subscribers, economists have foreseen a significant jump in unemployment in Brazil due to the Covid-19 pandemic, with companies forced to downsize amid widespread self-isolation and the rapidly dwindling demand for non-essential goods and services.

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