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FIRST AID FOR EMPLOYEES AND ENTREPRENEURS (COVID-19)

We would like to inform you that on 6 April 2020 the Slovak Ministry of Labor, Social Affairs and Family has presented their “first aid” package for employees and entrepreneurs that is aimed at reducing the negative impact of coronavirus.

As of 6 April 2020, 12pm the Offices of Labor, Social Affairs and Family will accept applications for wage allowances from employers who had to stop their business activities and close their operations. As of Wednesday, 8 April 2020, 12pm other interested parties, namely employers with reduced income and self-employed persons, will be able to apply for contributions.

The aid is intended in particular for:

  1. employers, including self-employed persons who are employers who had to stop their business activities and close their operations following the decision of the Public Health Authority of the Slovak Republic;
  2. employers and self-employed persons who did not have to stop their business activities and close their operations but whose income has been reduced as a result of the coronavirus crisis by a specified amount and self-employed persons who are not employers but had to stop their business activities and close their operations.

The applicants will be granted a contribution at an amount which varies depending on which type of entrepreneur requires such contribution; the contribution may be granted either as:

  • an employee’s wage allowance of 80 % of their average earnings, up to a maximum of EUR 1.100 (employers mentioned under letter A above), or
  • an employee’s wage allowance that shall be determined depending on a decrease in sales of the particular applicant (employers mentioned under letter B above) or
  • a lump-sum contribution that shall be determined depending on a decrease in sales of the particular applicant (self-employed who are not employers mentioned under letter B above).

In all above cases where employee’s wage allowance is granted (i.e. except for the case of the self-employed persons that are not employers), the condition for granting thereof is that the employer does not terminate the employment relationship with its employee during and even after the crisis period.

For the month of March, the lump-sum contribution for the employers mentioned under letter B above and the self-employed persons mentioned under letter B above are as follows:

Decrease in sales 10 % – 19.99 %  → 90 euros

Decrease in sales 20 % – 29.99 %  → 150 euros

Decrease in sales 30 % – 39.99 %  → 210 euros

Decrease in sales 40 % and more  → 270 euros

For the month of April, the lump-sum contribution for the employers mentioned under letter B above and the self-employed persons mentioned under letter B above are as follows:

Decrease in sales 20 % – 39.99 %  → 180 euros

Decrease in sales 40 % – 59.99 %  → 300 euros

Decrease in sales 60 % – 79.99 %  → 420 euros

Decrease in sales 80 % and more  → 540 euros

The contribution is provided from 13 March 2020, i.e. from the date of the decision of the Public Health Office of the Slovak Republic on closure or limitation of certain operations until the end of the calendar month in which the decision of the Public Health Office of the Slovak Republic will be cancelled.

As far as the calculation of the decrease in sales is concerned, there are three ways in which such decrease may be calculated:

  1. comparing sales for the month for which the contribution should be granted with sales for the same month of the previous year (e.g. for March 2020 it will be March 2019),
  2. the average of 2019 sales (i.e. 1/12 of sales in 2019) is compared with the sales for the month for which the contribution should be granted – in this case it is required that the business activities were carried out during the whole year 2019,
  3. comparing the sales in February 2020 with the sales in the month for which the contribution should be granted – in this case it is required that the business activities were carried out only partially in the year 2019 and were started to be carried out not later that on 1 February 2020.

The granting of contributions will depend on fulfilment of certain legal conditions and will be evidenced by the affidavit of the concerned applicant.

Should you have any questions regarding the above mentioned contributions in your particular case, we will be happy to assist you.