Adjustments to the First Aid Scheme conditions

The Slovak government has amended the conditions of the job retention scheme (First Aid Scheme).

The objective was to adjust the First Aid Scheme conditions for the applications submitted for October 2020 and extend the duration of the scheme to cover the period of January to March 2021.

 

SUPPORT TO EMPLOYERS

 

What remains unchanged are the two categories of employers depending on whether they:

1. have been ordered to close or discontinue their operations based on a decision issued by the Public Health Authority (‘Measure 1’), or

2. have been affected by the extraordinary situation (‘Measure 3’).

 

The following changes have been adopted for Measure 1:

• The target group of employees has been expanded to also include the employees hired after 01/03/2020, but no later than on 02/09/2020;
• The target group of the applicants for contributions now also includes those entities which started their business after 01/02/2020, but no later than on 02/09/2020;
• The contribution amount has been increased from 80 % of the employee’s average earnings to 80 % of the employee’s total cost of labour for the duration of the time when the employee concerned could not work due to obstacles on the employer’s part (Section 142 of the Labour Code);
• The mandatory period for the employer’s job retention commitment has been shortened from two (2) months to one (1) month during the emergency period.

 

The changes for Measure 3 are as follows:

• The target group of employees has been expanded in line with the new rule for Measure 1 above;
• The target group of applicants for contributions has been expanded in line with the new rule for Measure 1 above;
• The mandatory period for the employer’s job retention commitment has been shortened in line with the new rule for Measure 1 above.

Under Measure 3 (which continues to cover Measure 3A and Measure 3B), the amount of contribution under Measure 3A (known as ‘kurzarbeit’) has been increased from 80 % of the employee’s average earnings to 80 % of the employee’s total labour cost for the duration of the time when the employee cannot work due to obstacles on the employer’s part (Section 142 of the Labour Code); the maximum contribution amount has been increased from € 880 to € 1,100.

Under Measure 3B (lump-sum contribution covering a part of the wage costs for each employee depending on the decrease in sales), the amount has been increased from 80 % of the employee’s gross wage to 80 % of the employee’s total labour cost, subject to the ceilings in the amended ‘Decrease in Sales’ table for Measure 2 (for support to the self-employed, see point 1 below).

 

SUPPORT TO THE SELF-EMPLOYED

 

The First Aid Scheme distinguishes between two categories of the self-employed:

1. Those who have terminated or suspended their business activities or whose sales have decreased during the extraordinary situation or state of emergency as a consequence of the measures adopted by the Public Health Authority;

2. Selected groups of the self-employed^[1] who had no other income during the extraordinary situation.

 

The support available to the self-employed who have terminated or suspended their business activities or whose sales have decreased as a consequence of the measures adopted by the Public Health Authority during an extraordinary situation, state of emergency or state of heightened emergency, has been adjusted as follows:

• The target group has been expanded to also include (i) those self-employed who started their business after 01/02/2020, but no later than on 02/09/2020; (ii) those self-employed who became obliged to pay the mandatory health and pension insurance after 01/07/2020;
• The fact that a self-employed person has a parallel employment no longer disqualifies him/her from being eligible for support;
• The amount of contribution in individual ‘decrease in sales’ categories has been increased by a factor of 1.5^[2]

 

Decrease in sales (categories)	April to September 2020	October and months beyond
od 20.00 – 39.99 %	180 EUR	270 EUR
od 40.00 – 59.99 %	300 EUR	450 EUR
od 60.00 – 79.99 %	420 EUR	630 EUR
80 % and more	540 EUR	810 EUR

 

The support for the selected groups of the self-employed who had no other income during the extraordinary situation has been amended as follows:

• The target group has been expanded to also include (i) those who were established and started their business after 01/02/2020, but no later than on 02/09/2020;
• The contribution amount has been increased from € 210 to € 315^[3].

 

We hope you will find this information useful. We are monitoring the situation very closely and we will keep you updated. Do not hesitate to contact us should you need detailed information about the individual measures.

 

 

Dajana Csongrádyová, Zuzana Judiaková