The Slovak government has updated the measures to mitigate the effects of the coronavirus crises for employers, whose operations has not been mandatory closed.
The company may choose which kind of state contribution better suits their business needs:
A. The employer is entitled to an allowance for each employee to whom the employer cannot assign work because of an obstacle on the part of the employer. The allowance per employee is equal to the amount of wage compensation paid for the time of obstacles at work, at the same time not more than 80% of the average earnings of the employee. The maximum amount is EUR 880.
B. The employer is entitled to an allowance for each employee, not only those with obstacles on the part of employer. This allowance is not applicable for employees on a sick leave, taking care of a family member or on a holiday. The allowance per employee is a flat rate that varies depending on the sales decrease as follows:
- EUR 180 for sales decrease above 20%
- EUR 300 for sales decrease above 40%
- EUR 420 for sales decrease above 60%
- EUR 540 for sales decrease above 80%
For the month of March 2020 the maximum amount of allowance is a half of above mentioned.
We would just like to remind employers, that both of the contributions are applicable only for employees who´s employment started not later than March 1st 2020.
The deadline to submit the application for these allowances is the end of the month following the respective month. For the period of March 2020 an extraordinary deadline was stated: May 15th 2020.
ASB payroll team is ready to assist its clients with completing and submitting the application for the allowances.
Payment of social security contributions – new regulation
On April 22nd 2020, the National Council of the Slovak Republic approved an amendment to Act no. 461/2003 Coll. on Social Insurance, as amended, which waives the payment of contributions for the month of April 2020. The purpose of the measure is to mitigate the economic impact on the employers as premium payers in response to the current situation regarding Covid-19. This regulation concerns only those companies, whose operations have been closed in April 2020 for more than 15 days by decision from Health Public Office.
Mária Hildebrandová
Head of Payroll
ASB Slovakia
mhildebrandova@asbgroup.eu