Regulatory update on the Formal Employment Support Program – PAEF

The Formal Employment Support Program - PAEF, created by Decree L. 639 of 2020, emerged as a special employment support program aimed at legal entities to subsidize the payment of their payrolls, to mitigate the economic deterioration and adverse consequences generated by the Covid-19 pandemic.

However, the National Government soon realized that this benefit should be extended to other generators of employment such as natural persons, consortiums, and temporary unions. Decree L. 677 of 2020 was issued, which expanded the possible beneficiaries and introduced several modifications to the regulation.

Similarly, in the following document we detail the most relevant points contained in Resolution 1129 of 2020 of the Ministry of Finance and Public Credit, regulating the PAEF, and Circular No. 001 of 2020 issued by the Pension and Parafiscal Management Unit - UGPP, through which the PAEF application form was implemented, which are fundamental tools for the enrollment of potential beneficiaries.