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Factsheet for case BE-2020-12/418 Updated – measures in Belgium

Flemish compensation premium in case of large turnover loss

Vlaamse compensatiepremie in geval van groot omzetverlies

Country Belgium , applies regionally

    • – BE2 VLAAMS GEWEST
Time period Open ended, started on 15 March 2020
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Dries Van Herreweghe (Katholieke Universiteit Leuven) and Eurofound
Case created 09 April 2020 (updated 16 September 2020)

Background information

This new premium is aimed at companies and their suppliers who are allowed to continue working or shops that remain open but have a large loss of turnover due to the restrictive measures. They have to be able to show that they have a loss of sales of -60% in the period between 15 March and 30 April 2020 compared to the same period last year.

For start-ups, a decrease in turnover of -60% compared to the financial plan laid down will be taken into account. NPOs are also eligible, provided that at least one person is employed full time.

Content of measure

Enterprises and their suppliers that are still working or businesses that remain open but suffer a large loss of turnover as a result of the measures are eligible for a compensation premium from the Flemish government. This is the case for, for example:

  1. Companies in the events sector, with many freelancers
  2. Para-medical professions such as physiotherapists, dentists, psychologists or speech therapists who are only permitted to carry out urgent interventions
  3. Specialised food and drink shops, such as chocolate and wine shops, that suffer a heavy loss of turnover due to lack of passage or tourists
  4. Painters, electricians and plumbers who are only allowed to carry out urgent repairs
  5. Farmers targeting catering customers

The compensation premium amounts to €3,000. For a certain category of self-employed, as secondary occupation, the compensation is €1,500.

The corona compensation premium is a one-off premium.

Updates

The following updates to this measure have been made after it came into effect.

09 September 2020

New line within the premium specific for people in the cultural sector.Within the Flemish Emergency Fund a new line is being opened to support additional people active within the cultural sector. This is a lump-sum premium of €1,500 for those who have so far fallen through the net within the sector.

Use of measure

The exact amount of beneficiaries is currently unclear as the businesses have to apply for it themselves based on their turnover rates. The concrete numbers will only be known at a later stage. It is to be expected however that there will be a significant amount of applications, especially in the events sector.

Target groups

Workers Businesses Citizens
Self-employed
Solo-self-employed
One person or microenterprises
Does not apply to citizens

Actors and funding

Actors Funding
Local / regional government
Regional funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

Unknown

Views and reactions

It is to be expected that the social partners have at least been informed of the measure (in particular the employers associations).

Sources

Citation

Eurofound (2020), Flemish compensation premium in case of large turnover loss, case BE-2020-12/418 (measures in Belgium), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.