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← Overview Database of Innovative Social Policies in Europe

Reduction of salaries at 50% for 3 months maximum when the economic activities of the firm are reduced

Country of implementation
General short description of the innovation
After consultation with employees? representatives and labour market inspection and if the firm provides evidence of serious reduction on its operation (e.g. reduction on selling products) the employer has the right to reduce the working time of employees by respective reduction of their salary for a period of 3 months maximum
Target group
Total Population
Policy Field
  • wage
Type of Policy
  • publicly mandated to non-state organisation
Duration of the policy
2010 (Law 4093)
Scope of innovation
  • Scope: structural
  • Number of intended beneficiaries: all private sector employers
  • Spatial coverage: national
General description of (intended) objectives and strategies
To empower firms in their effort to adapt to the rapid changes of their activity because of the crisis
Nature of the innovation-short-term perspective
systemic with programmatic implications
Type of ideal-typical strategy for the innovation
  • liberalisation
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • wages
  • working time
Intended target group
Working age population
  • income level (low/medium/high)
Actors involved in policy-making/implementation and/or evaluation
  • central state
  • employees (organised or individual)
  • employers (organised or individual)
Clarification of the role of various actors
The central state regulates, employers and employees implement the regulation.
Intended output
  • wages
Intended and unintended outcomes
Clarification of outcomes in terms of impacting resilience and labour market inclusion
Support firms to adjust in the turbulence of crisis by minimizing the redundancies. Employers benefit in terms of their capacity to adapt in challenges because of the crisis and employees increase the chances for their stay in employment
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