The government accepted a proposal to modify the conditions of the job retention project during a declared emergency on 14 April 2020 that results in an expansion of the relief made available to employers and employees. This is the third social relief package, and applicants can seek a contribution under the program from the Office of Labour, Social Affairs and Family as of 17 April 2020. Contributions under the first and second packages may be requested effective 6 April 2020 and 8 April 2020 respectively.
Applications for March 2020 must be filed by 15 May 2020. An applicant filing an application for the month of April or May must file such application by the end of the calendar month that follows the calendar month for which the applicant is requesting such contribution.
Employer contributions
| Support | Measure 1 Employers forced to close their establishments | Measure 3 Employers: 3 A – impediment attributable to the employer 3 B – with a loss of revenues | ||||||||||||||||||||
| Entitlement (eligible party) | Employers (including sole proprietors who are employers) forced to close their establishments on the orders of the Public Health Authority of the Slovak Republic
| Employers (including sole proprietors who are employers) who were not forced to close their establishments: 3 A – impediment to work attributable to the employer 3 B – loss of revenues Note: Select only one of the options – 3A or 3B.
The selected option cannot be changed during the period in which such contribution is provided!
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| Amount | In the amount of wage compensation capped at 80% of the employee’s average earnings, up to a limit of €1,100 (€880 for March 2020)
There is no maximum per company monthly contribution amount.
(The maximum of €800,000 per applicant is cancelled )
| 3A the employer was unable to assign work – impediment attributable to the employer.
In the amount of wage compensation capped at 80% of the employee’s average earnings, up to a limit of €880 (there must be an impediment to work) or 3B The sum of the flat-rate contributions determined on the basis of a decrease in revenues – The contribution may be distributed for an employee who is working and for an employee who has an impediment to work for reasons attributable to the employer. The condition is that no more than 50% of their total working hours are interrupted due to an impediment attributed to the employee (temporary disability, caring for a family member or holiday time).
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Contributions for sole proprietors and natural persons
| Support | Measure 2 Sole proprietors forced to close their establishments or whose revenues decreased | Measure 4 Natural persons with no other income after 13 March 2020 (from entrepreneurial, non-entrepreneurial and dependent activity) | ||||||||||||||||||||
| Entitlement (eligible party) | Sole proprietors forced to close their establishments on the orders of the Public Health Authority of the Slovak Republic or whose revenues decreased and concurrently: – who are insured under sickness and pension insurance until 31 March and such insurance endures after this date – making use of the statutory contribution holiday (from the start of business activities to 1 July of the following year)
Sole proprietors: 1. operating a trade license 2. conducting activities under special regulations (lawyers, notaries, etc.) 3. conducting agricultural work, including forestry activities
Information on the Ministry of Labour, Social Affairs and Family of the Slovak Republic states that sole proprietors are assessed under the Income Tax Act (partners in general partnerships, general partners in limited partnerships, interpreters, artists, athletes, tax advisers, etc.)
| Sole proprietors without sickness and pension insurance and who: · interrupt or restrict the pursuit or operation of their activities
· whose authorisation to pursue such activities was halted effective 13 March 2020
Partners in single-party limited-liability companies – natural persons · A sole partner and who is also the managing executive in their own limited-liability company whose after-tax profit for 2019 did not exceed €9,600
· They may not be an employee of this company or partner in any other limited-liability company.
Contract workers · They are in an employment arrangement based on an agreement outside of employment
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| Amount | Flat-rate contribution determined on the basis of a decrease in revenues
| Flat-rate compensation
· €105 for March 2020
· €210 for April, May, etc. 2020
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In the manual for completing statement no. 2, which is available online at www.neprepustaj.sk (Slovak only), revenues are defined as a part of income. Revenues are financial income received from the sale of a product, the rental of land, buildings, equipment and the like. For natural persons, revenues are considered that income that is actually received or paid, and therefore that which is reported in single-entry bookkeeping or in the income records in the financial ledger or a natural person.
The term revenue is not defined as it is in the Government Regulation on Defining a Decrease in Revenues, as published under §293ew (2)(a) of Act No. 461/2003 Coll. on Social Insurance, as amended by Act No. 68/2020 Coll., and is therefore only used to define the decrease in revenues for the purposes of a request to defer insurance contributions on behalf of an employer and sole proprietor.
We expect that a revenue for the purposes of providing this contribution should only be understood as revenues/income from the sale of goods and services, also known as “net turnover” as defined in §2 (15) of Act No. 431/2002 Coll. on Accounting.
We’ll provide additional information clarifying these legislative inaccuracies in terms of the definition of revenues for providing the contributions under Measures 2, 3a and 3b.
Common conditions for employers and sole proprietors
- pay employees wage compensation in the amount of 80% of their average earnings
- commit to refrain from action for two months after the month for which it requests a contribution for a specific employee to terminate their employment as the employer,
- submit data on the number of employees as of 31 March 2020,
- condition „enterprise in difficulty“ was on 21. april 2020 canceled.
- fulfilment of the conditions under §70 (7) of the Employment Services Act
- has met all tax obligations under a special regulation,
- has fulfilled its obligations for advance payment of public health insurance contributions, social insurance contributions and other mandatory contributions for old-age pension savings,
- has not violated the ban on illegal employment over the two-year period preceding the submission of an application for the contribution,
- has no due financial liabilities to authorities,
- is not in bankruptcy, liquidation, compulsory administration or does not have a specified repayment schedule under a special regulation,
- has no records of any unsatisfied claims made by its employees under the terms of employment,
- does not have a legal penalty of prohibition to receive subsidies or aid or a penalty of a ban on receiving assistance and support from European Union funds in the case of a legal entity;
An employer shall demonstrate the fulfilment of all these conditions in the form of a sworn statement which will be subject to ex-post controls.
We’ll keep you informed of the latest developments in this area.
Please do not hesitate to contact us if you have any questions.
Attention:
This material is indicative in nature and simply serves to provide a general overview for providing these contributions.
Please contact us with any specific questions or clarification you may require.
