Slovakia: Financial Help for Businesses and Self-Employed
1. Contribution for employers with shut-down businesses
From 6 April 2020 businesses that had to be mandatorily shut down under a measure issued by the Public Health Office (Úrad verejného zdravotníctva) can apply for a state contribution of 80 per cent of each employee’s paid wage compensation. The government has removed the restriction as to the maximum amount of such granted contribution of EUR 800,000 per employer. Therefore the contribution can now be granted even to employers who employ more than 200 persons. The maximum contribution per one employee of EUR 1,100 remains unchanged.
The financial contribution will be granted to employers provided they do not terminate employment with the concerned employees within two months following the month in which they apply for the contribution, nor conduct any other legal action which would lead to the termination of the employment by notice or agreement for reasons on part the employer (Section 63 (1) let. a) and b) of Labour Code). Applications for payment of the contributions can be submitted via www.pomahameludom.sk hosted by the Ministry of Labour, Social Affairs and Family.
2. Contribution for self-employed with shut-down businesses or drop in revenues
The respective contribution will target solely self-employed with no employees that had to shut down their businesses under a measure of the Public Health Office or that have recorded drop in revenues as compared to last year’s figures. The applications can be submitted starting 8 April 2020.
|Drop in revenues March 2020
||Drop in revenues April, May 2020
| ≥ 10 %
|| EUR 90
|| ≥ 20 %
|| EUR 180
| ≥ 20 %
|| EUR 150
|| ≥ 40 %
|| EUR 300
| ≥ 30 %
|| EUR 210
|| ≥ 60 %
|| EUR 420
| ≥ 40 %
|| EUR 270
|| ≥ 80 %
|| EUR 540
3. Aid for employers affected by emergency situation
The conditions for the provision of the planned financial contribution for employers the businesses of which have not had to mandatorily shut down and that have recorded revenue shortfall as compared to last year have now been modified by the government. The amount of a fixed contribution per employee is visible from the table above under point 2.
The government has also introduced a new option for obtaining a contribution. Employers who cannot assign any work to their employees on serious operational grounds as stipulated in a written agreement concluded with the employees’ representatives under Section 142 (4) of Labour Code can now apply for a contribution in an amount exceeding the fixed rate. For such cases, the contribution will be provided in the amount of employees’ wage compensation as agreed with the employees’ representatives (where by law the amount cannot be lower than 60 per cent of employee’s average earnings), but no more than 80 per cent of average earnings and, at the same time, in the maximum amount of EUR 880 per month.
The financial contribution will be granted to employers provided they do not terminate employment with the concerned employees within two months following the month in which they apply for the contribution, nor conduct any other legal action which would lead to the termination of the employment by notice or agreement for reasons on part the employer. Detailed information on the provision of the contribution will be published by the Ministry of Labour, Social Affairs and Family along with the launch of application submission.
4. Aid for natural persons with no income during the emergency period
Each natural person who has no income from business activities, non-business activities or employment since 13 March 2020 and who
- is self-employed and has suspended or restricted performance or operation of its business activities,
- is self-employed and has suspended its authorisation to conduct business activities,
- is employed under an agreement outside of employment which is valid during the emergency period,
will be entitled to a contribution. The fixed contribution for March 2020 amounts to EUR 105 and for April and May 2020 to EUR 210.
Any questions? Please contact: Pavol Rak or Martin Ťupek
Practice group: Employment & Pensions