Idle-time benefit for entrepreneurs Subsidies to remuneration costs



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Employment aspects


The subsidy may be granted in the event of a decrease in economic turnover of the entrepreneur resulting from the COVID-19 epidemic. A decrease in economic turnover is defined as a decrease in the sale of goods or services, in terms of quantity or value, calculated as a ratio of the total turnover during 2 consecutive calendar months, falling in the period after 1 January 2020 to the day preceding the day of submitting the application for subsidy, compared to the total turnover during 2 consecutive calendar months of the previous year, as well as 30 consecutive calendar days, if the two-month comparison period starts during a calendar month, that is, on a day other than the first day of a particular calendar month.

The form of aid will depend on the situation of the company. The Act stipulates that in the case of entrepreneurs hiring employees:

Subsidies:

  • will cover part of the costs of employees’ salaries and due social security contributions (payable by both employees and the entrepreneur who is the employer) – the entrepreneur will be able to apply for a subsidy for the salaries of all employees, as well as only part of them;
  • can be granted when the drop in turnover reaches:- at least 30% – in an amount not exceeding the amount determined as the product of the number of employees subject to the application for the subsidy and 50% of the minimum wage,
    – at least 50% – in an amount not exceeding the amount determined as the product of the number of employees subject to the application for the subsidy and 70% of the minimum wage,
    – at least 80% – in an amount not exceeding the amount determined as the product of the number of employees subject to the application for the subsidy and 90% of the minimum wage;
  • can be granted for a period not longer than:
    – 6 months – in case of micro- and small entrepreneurs,
    –  3 months – in the case of medium-sized enterprises.

The subsidy will be paid monthly, after the entrepreneur submits a declaration that in a given month they employ employees under a contract, as of the last day of the month for which the subsidy will be paid. The amount of subsidy may not exceed the actual costs incurred for the remuneration of employees and social security contributions applicable to such remuneration.

The applications for a subsidy will be submitted by the entrepreneur to the poviat employment agency competent for the entrepreneur’s seat or place of work performed by the employees within 14 days from the date of announcement of admissions by the poviat director.

In the application for the subsidy, the entrepreneur will have to declare that a number of conditions have been met, i. a. with respect to the amount of decrease in turnover, the number of employees for which the subsidy has been granted or the amount of de minimis aid, submitted under pain of criminal liability for making false declarations. At the same time, a reservation will be introduced that the entrepreneur cannot receive the subsidy in the amount where the same costs were or will be financed from other public funds.

Learn more about specific regulations from the article: Overview of the premises of the „anti-crisis shield” – employment issues

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