Exemption from income tax on the amounts received pay (ERE)
Although not a breaking news story and to resume the blog that makes long do I bring a little blurb the new treatment of severance payments Redundancy Employment.
From last 8 March 2009 the amounts obtained under this heading shall be exempt from the limit of 45 days salary per year of service (maximum of 42 months), to date the limit was at 20 days per year worked.
Until that date all amounts obtained as a severance payment that exceeded the limit of 20 days per year worked, not being exempt, were subject to withholding, with the new legislation these amounts withheld must be paid by the company to redundant workers.
References:
Art 51-52 of the Statute of Workers.
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