Background information

The 'Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy' (ZIUZEOP), valid since 11 April 2020, alleviate the negative consequences of the pandemic exempting companies from paying pension and disability insurance in April and May 2020 (Article 33). Not included are organisations, directly or indirectly financed by the state budget, financial and insurance companies with more than 10 employees, embassies, and foreign organisations.

Content of measure

All companies (not included are organisations, directly or indirectly financed by the state budget, financial and insurance companies with more than 10 employees, embassies, and foreign organisations) are exempted from paying contributions for pension and disability insurance in April and May 2020. More in detail, the state agreed to pay pensions and disability insurances until to a threshold corresponding to the contribution due for a salary equal to three times the minimum monthly wages. As indicated by the Financial Administration, employers have to pay the difference. In addition, the law compels employers to pay to their employees €200 per month if the worker's pay is below three minimum monthly wages. The so-called 'crisis bonus' is exempted from all taxes and social security contributions.

Use of measure

The measure addresses all insured people with salaries below three minimum monthly wages. Publicly-financed organisations (receiving more than 70% of their income from public funds) cannot claim exemption from paying pension and disability insurance. The same holds for companies and organisation in the finance and insurance sector. It is a temporary measure for the period of the COVID-19 epidemic.

In March 2020, 44,161 employers requested an exemption from paying pension and disability insurance for 375,994 employees who continued to work during the epidemic. It means that almost half of all Slovenian employees were benefiting from this measure. This support amounted to €72.9 million for the period from 13 March to 31 March 2020

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Social insurance	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

The two COVID-19 laws (ZIUZEOP and ZIUZEOP-A) were adopted under an accelerated procedure with no involvement of the Economic and Social Council. Its functioning was blocked because the new government, which came to power on 13 March 2020, had not appointed its members in the Economic and Social Council. On 20 April, trade unions protested against the exclusion of social partners in the preparation of the second emergency law (ZIUZEOP-A). They demanded the reactivation of the Economic and Social Council. The first meeting of the Economic and Social Council was held not before 15 May 2020. The Council then became involved in negotiations about the third emergency law ZIUOOPE, issued on 30 May 2020

Views and reactions

Trade unions and employers' organizations have submitted proposals to the law. Employers' organizations requested that the measure also applies to the finance and insurance sector. They also stressed that some workers, for example, those working at home during the epidemic, shouldn’t be entitled to ‘crisis bonus’. The Chamber of Craft and Small Business of Slovenia suggested the government pays crisis bonuses instead of employers. Trade unions proposed that the exemption also includes occupational pension, that the ‘crisis bonus’ can be higher if collective agreements determine a higher bonus, that the measure also applies to the finance and insurance sector. Social partners specifically stressed insurance agents who would be harmed by exclusion. Some of their solutions (eligibility of companies with less than 10 employees in the finance and insurance sector; exemption from paying also for occupational pension) were adopted in the second COVID-19 law (ZIUZEOP-A). The aforementioned laws were adopted under an accelerated procedure with no involvement of the Economic and Social Council. Its functioning was, indeed, momentarily blocked because the new government, which came to power on 13 March 2020, had not yet appointed its members in the Economic and Social Council. On 20 April, trade unions protested against the exclusion of social partners in the preparation of the second emergency law (ZIUZEOP-A). They demanded the reactivation of the Economic and Social Council. The first meeting of the Economic and Social Council was held not before 15 May 2020. The Council then became involved in negotiations about the third emergency law ZIUOOPE, issued on 30 May 2020.

Sources

• 06 April 2020: Financial Administration, 'Preglednica ukrepov' [Table of measures] (www.gov.si)
• 10 April 2020: Zakon o interventnih ukrepih za zajezitev epidemije COVID-19 in omilitev njenih posledic za državljane in gospodarstvo (ZIUZEOP) [Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy (www.pisrs.si)
• 30 April 2020: Zakon o interventnih ukrepih za zajezitev epidemije COVID-19 in omilitev njenih posledic za državljane in gospodarstvo, ZIUZEOP-A [Act Determining the Intervention Measures to Contain the COVID-19 Epidemic and Mitigate its Consequences for Citizens and the Economy (www.uradni-list.si)
• 07 May 2020: [Workers’ social contributions have so far cost the state more than 90 million euros] Prispevki delavcev doslej državo stali več kot 90 milijonov evro (www.iusinfo.si)
• 30 December 2020: Act Determining Intervention Measures to Assist in Mitigating the Consequences of the Second Wave of COVID-19 Epidemic (Zakon o interventnih ukrepih za pomoč pri omilitvi posledic drugega vala epidemije COVID-19, ZIUPOPDVE (pisrs.si)
• 04 February 2021: Act on Additional Measures for Mitigation of Consequences COVID-19 (Zakon o dodatnih ukrepih za omilitev posledic COVID-19, ZDUOP (www.pisrs.si)