These are the requirements for companies to apply to Paef

These are the requirements for companies to apply to Paef

After the approval of the tax reform or Social Investment Law, and the expansion that was achieved with it for the Formal Employment Support Program (Paef), The Ministry of Finance, together with the Pension and Parafiscal Management Unit (UGPP) opened a new application process, which will be open until November 11 and will seek to help, especially, small and medium-sized companies.

(See: Government opens new cycle of applications for Paef).

Thanks to Paef, since March 2021, 4.1 million jobs have benefited, through payroll subsidies that have been delivered to 143,000 employers, equivalent to $ 6.8 billion, and during this week those employers will be able to present themselves that for the month of March 2021 they had a maximum of 50 workers registered in the Integrated Contribution Settlement Worksheet (Pila).

If they meet all the requirements, they will receive financial support equivalent to 50% of a minimum wage for each working woman, that is, $ 454,000, an amount that also applies to all workers in the tourism, hotel, gastronomy, artistic, entertainment and recreation sectors, while employers in other sectors and workers mens will have support equivalent to 40% of the minimum wage ($ 363,000).

(See: Why do companies need to get involved in big debates?).


According to the UGPP, legal persons, consortiums or temporary unions, non-profit entities or autonomous wealth declaring income, cooperatives, non-official educational establishments and natural persons may appear. with two or more workers reported in Pila from February 2020.

In addition, it is necessary for the employer to have a deposit product in a financial institution and have been incorporated before January 1, 2020 (For natural persons, the date of registration in the commercial register is taken as a reference).

(See: This is how you can access the housing subsidy from the Habitat Secretariat).

The main requirement to be a beneficiary of Paef is have had a 20% or more drop in income, compared with the same month of 2019, or with the average January – February 2020.

Employers also need an entry in the commercial register made or renewed at least in 2020 and non-profit entities, consortia or temporary unions must provide a copy of the Single Tax Registry (RUT).

Finally, the participating entities should not have participation of the Nation and / or its decentralized entities greater than 50% of its capital.

Among the documents that employers must present is the completed and signed application form and a certification signed by the employer or legal representative and the tax auditor or public accountant who indicates a decrease of 20% or more in his income, that the employees on whom the contribution will be received received the salary of the previous month and the autonomous patrimonies and non-profit entities must attach a copy of the RUT.

(See: Keys to the performance of the housing sector during 2021).

It should be remembered that in this period, applications corresponding to the months of May and June 2021 will be received through which subsidies will be granted for the payrolls of April and May 2021, that is, 2 of the 8 cycles foreseen in the extension of the program established by the Social Investment Law.


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