PHILIPSBURG--A graduated payroll support scheme, public disclosure of payroll support recipients, and a twenty per cent salary cut for private-sector employees are among several sweeping changes to the St. Maarten Stimulus and Relief Plan (SSRP) brought on by the conditions set by the Netherlands for continued financial support, Finance Minister Ardwell Irion told Members of Parliament (MPs) in an urgent public parliamentary meeting on Wednesday afternoon.
These regulations were changed as of June 1.
Government has established a graduated scale for payroll support. There is now a one-to-one ratio between an employer’s revenue loss and the amount received in wage support, up to a maximum of 60 per cent. This means a business that lost 30 per cent of its income will only be entitled to 30 per cent in payroll support.
The earlier version of the payroll support scheme, which was implemented in April and May, paid between 60 and 80 per cent of a qualified business’ wages on the condition that the employer did not lay off any staff.
Under this version of the scheme, if a business demonstrated revenue loss between 80 and 100 per cent, then government would supply 80 per cent of payroll. Government would pay 70 per cent payroll if revenue losses were between 50 and 79 per cent, and 60 per cent if revenue losses were between 20 and 49 per cent.
Irion said the projected three-month cost of the scheme’s older version was NAf. 74 million.
To qualify for payroll support as of June 1, employers must voluntarily agree that their company’s name will be published as a recipient of the scheme if they are approved.
Moreover, employees of approved businesses are obliged take a 20 per cent salary cut, as their employers must provide written proof that employees have agreed to take the 20 per cent salary reduction. Employers are ineligible for support if they cannot provide this evidence.
However, the exemption list has been eliminated under this new version of the scheme, potentially opening eligibility to more businesses.
The Dutch government issued St. Maarten an interest-free loan of NAf. 53 million for the period of May 15 to June 30. Of this amount, NAf. 24 million was immediately made available to government. The remaining NAf. 29 million was held back until St. Maarten complies with the Dutch government’s conditions (see related story).
Irion told MPs that government had paid out approximately NAf. 9.7 million in payroll support for April, based on the latest information. About 740 employers applied for this support, with 504 applicants approved and 204 rejected. The average decline in revenue per employer was 37 per cent and the average support in wages was 68 per cent. He said 30 applications were still being reviewed.
The May payroll support amounts to approximately NAf. 6.8 million in disbursed funds thus far. About 660 employers applied for this support, with 255 applicants approved and 19 rejected. The average decline in revenue per employer was 87 per cent and the average support in wages was 79 per cent. Irion said 382 applications were still being reviewed.
Government paid about NAf. 1.2 million in lockdown payroll support, said Irion, adding that 176 employers had applied for this funding. About 120 of these applications are still under review, he said.
Irion said persons can appeal payroll support denials to the executing body Social and Health Insurances SZV.
“Employers who have been denied payroll or lockdown support can submit their appeal via the SZV employer portal. Valid proof must be provided to substantiate the initial decision being overturned,” said Irion in a press release on Tuesday.
The SSRP not only includes payroll support for businesses, but also unemployment support and income support for sole proprietors, vendors, licence holders, tour operators, and bus and independent taxi drivers.
Government made 249 payments in the unemployment scheme thus far, amounting to NAf. 286,350. The income support scheme has cost government NAf. 302,450 from 263 payments.
“SMDF is the executing authority for income support. … They are also executing the COVID-19 unemployment support. In order to appeal a denied application, e-mail
This email address is being protected from spambots. You need JavaScript enabled to view it.. Valid proof must also be provided as to why the decision should be overturned,” said Irion in the press release.
The SSRP’s objective is to “minimise job loss and create a buffer to mitigate future economic impact,” said Irion.
