--- title: "How to handle compensation under the Simplified Lay-off regime for areas affected by storm Kristin?" slug: "1776848146" tags: ["Regimes"] updated: 2026-08-18T10:18:07Z published: 2026-08-18T10:18:07Z canonical: "help.ila.cegid.com/1776848146" stale: true --- > ## Documentation Index > Fetch the complete documentation index at: https://help.ila.cegid.com/llms.txt > Use this file to discover all available pages before exploring further. # How to handle compensation under the Simplified Lay-off regime for areas affected by storm Kristin? - [x] PT - [ ] ES - [ ] AO - [ ] CV - [ ] MZ - [ ] ST - [ ] GW - [x] Professional - [x] Executive - [x] Public Sector - [ ] Omnia - [x] Evolution --- The ERP supports handling the simplified social support and lay-off regime for the areas affected by storm «Kristin». --- ## Legal Framework [Law No. 12/2026, of April 14](https://diariodarepublica.pt/dr/detalhe/lei/12-2026-1084346068), which amended [Decree-Law No. 31-C/2026](https://diariodarepublica.pt/dr/detalhe/decreto-lei/31-c-2026-1039107607), created a **simplified social support and lay-off regime** for the **areas affected** by storm «Kristin». Article 22, No. 4 was added, stating that, under this article, *the wage compensation the employee is entitled to corresponds to* ***100% of their normal gross retribution****, and is* ***paid by the employer up to a limit of three times*** *the guaranteed minimum monthly wage.* Previously, Articles 298 and following of the Labor Code applied, in particular Article 305, No. 1, subparagraph a) - *to receive a monthly* ***minimum amount equal to two-thirds*** *of their normal gross retribution, or the value of the guaranteed minimum monthly wage corresponding to their* ***normal working period****, whichever is higher.* Article 22-A was also added, stating that: - For the first **60 days,** the wage compensation is paid **80%** by Social Security and **20% by the employer**. - After that period, the wage compensation is paid **70%** by Social Security and **30% by the employer**. > [!WARNING] > This change takes effect the day after its publication (15/04/2026) and **takes effect retroactively on 28/01/2026**. This means it's a measure with **retroactive effects that affects payroll runs already processed.** --- ## Settings To implement the simplified Lay-off regime for the areas affected by storm "Kristin" in the system, you must create the following records: 1. **A specific absence to apply this regime, with the following settings:** - Type of Absence in **Days**, with calculation in days enabled; - On the **Earnings** tab, choose the **Only affects the selected earnings** option and specify the earnings that will be affected by the absence; - On the **Social Security** tab, enable the **Never** option; 2. **A specific earnings item for calculating the wage compensation, with the following settings:** - On the **General** tab, the **Type** should be **Unit Value**; the formula must be **Fixed Value** and will be calculated in **Salary and Vacation**; - On the **General** tab, the **Nature** must be **P** for **salary**, **X** for **extraordinary**, and **6** for **Retroactive**; - On the **Deductions** tab, choose the same deductions applied to the base salary (R01). Regarding the Social Security deduction, you should keep applying the employee's and the employer's **normal rate**, since the reporting obligation to Social Security still applies, and entities must continue to submit the Earnings Statements (DRi) at the rate normally applicable to the affected employees (i.e., the rate without any reduction); - On the **Other** tab, choose **Base salary** for the **Staff** column; 3. **A specific leave type for handling the Lay-off, with the following settings:** - On the **General** tab, choose the **Lay-off Type**; for **Days**, choose **Calendar Days** (counting holidays as days), and enable the **Has sick leave supplement** option; - On the **General** tab, specify the Lay-off **percentage**, which should correspond to the percentage of time spent on Lay-off; - On the **Processing Data** tab, choose the earnings item created in point 2, and set the earnings that contribute to calculating the supplement, namely: **Salary** and **Length of Service Bonuses**. - On the **Lay-off** tab, set the **100%** percentage for **Contributory Compensation** and the **RMMG Factor** to **3**. --- ## Calculating the Compensation On the Leave, on the **Lay-off** tab, set the **Contributory Compensation** percentage to **100** and the **RMMG Factor** to **3**. The compensation calculation depends on the Lay-off percentage: **Employee is 100% on Lay-off** The employee receives compensation equal to their normal gross retribution, up to a maximum of three times the RMMG (Article 305, No. 1, subparagraph a), and No. 3 of the Labor Code). **Calculation Examples** **Scenario 1** - Salary = 1,100 - Maximum limit 2,760 (value of 3 x RMMG) - **Compensation = 1,100** **Scenario 2** - Salary = 2,800 - Maximum limit 2,760 (value of 3 x RMMG) - Compensation **= 2,760** (to keep it within the maximum value) **Employee is partially on Lay-off** If the pay for the hours actually worked is lower than the **amount corresponding to their normal working period**, the employee is entitled to a **wage compensation up to that amount.** In other words, the employee is entitled to a wage compensation **equal to the amount corresponding to their normal working period.** Only a **maximum limit** applies, meaning the sum of the pay for the hours actually worked and the wage compensation **cannot exceed three times the RMMG**. (Article 305, No. 1 a) of the Labor Code). The **salary amount** is always calculated on a **30-day basis.** This means that, to ensure 100% of salary, the system calculates the time worked and the Lay-off time on a 30-day basis. For this reason, it's recommended that the **Fixed Days (30)** processing type be used in the employee's record. **Calculation Examples** **Scenario 1** - Salary = 1,600 - Lay-off time = 40% **over 30 days** - Maximum limit 2,760 (value of 3 x RMMG) - Pay for the time worked during Lay-off = 960 (1,600*60%) - **Compensation** = **640** (1,600-960), to make up the full salary **Scenario 2** - Salary = 1,600 - Lay-off time = 40% **over 10 days** - Maximum limit 920 (value of minimum limit * 3) - Pay for the Lay-off period = 533.33 (1,600/30*10 Lay-off days) - Pay for the time worked during Lay-off = 320 (533.33*60%) - **Compensation** = **213.33** (533.33 - 320), to make up the full salary --- ## Earnings Statements The reporting obligation to Social Security still applies, and entities must continue to submit the Earnings Statements (DRi) at the **rate normally applicable** to the affected employees (i.e., the rate without any reduction). --- ## Calculating Backpay This change takes effect the day after its publication (15/04/2026) and **takes effect retroactively on 28/01/2026**. If you want to make this adjustment, follow these steps: 1. Make sure all lay-off leaves are in the **Finished** status; 2. Go to **Tables | Processing Data | Leaves**, edit the leave, and, on the **Lay-off** tab, change the **Contributory Compensation** to **100%.** 3. Go to **Processing | Backpay** and calculate the backpay for the months in which the lay-off leave was applied.