Extension of deadline for submitting applications for the co-financing of employees' salaries

Oct. 9, 2020 Poland

We would like to inform you that the deadline for submitting applications for the co-financing of employees' salaries from the Guaranteed Employee Benefits Fund (GEBF) has been extended. The applications may be submitted until the 30th day after the date of the cancellation of the epidemic status. This change was introduced by “Anti-Crisis Shield 5.0” and is effective from 24 September 2020.

As such, taxpayers have more time to apply for a subsidy of remuneration for those employees for whom co-financing from GEBF has not been applied for yet.

Terms and conditions for using co-financing of employees’ salaries

Co-financing may be used by companies noting a decrease in economic turnover following the occurrence of COVID-19:

  • by at least 15%, comparing the total turnover during any 2 consecutive calendar months after 31 December 2019 with the corresponding 2 consecutive calendar months of the previous year; or
  • by at least 25%, comparing the turnover for any given calendar month after 31 December 2019 with the previous month.

Furthermore, the company cannot be in arrears in the payment of tax liabilities, social security, health insurance, GEBF, Labour Fund, or Solidarity Fund until the end of the third quarter of 2019 and cannot meet the preconditions for declaring bankruptcy as defined in the regulations of bankruptcy law.

Employees covered by the co-financing

The company may obtain co-financing of salaries for employees who have been subject to reduced working hours (up to 80%) and temporary layoff.

In addition, there is also the possibility to apply for co-financing by companies that have not decided to limit the working time of their employees. Thus, the subsidy is also available for employees working in regular worktime.

Co-financing is not available for employees deriving revenues exceeding approx. 15k PLN.

Co-financing amount

Employees' salaries are co-financed up to the cap of half of the employees' salaries, but no more than 40% of the average monthly salary as of the previous quarter announced by the Main Statistics Office (GUS), valid on the day of submitting the application for co-financing (i.e. currently no more than 40% x 5 024,48 PLN= 2 009,79 PLN) plus social security contributions. In the case of employees in a temporary layoff, co-financing amounts to 50% of the minimum remuneration for work plus social security contributions.

Benefits and social security contributions are available for a total period of 3 months, starting from the month the application is submitted.

If you are interested in receiving co-financing from GEBF, please contact us. We will analyze the possibility of using the available aid by your company and will help you to fill in and submit applications.

Łukasz Bączyk
Head of Tax, Członek Zarządu
E: lbaczyk@asbgroup.eu

Marta Skrodzka
Tax Manager - Doradca Podatkowy
E: mskrodzka@asbgroup.eu

Aleksandra Kryzińska
Senior Tax Consultant
E: akryzinska@asbgroup.eu