Factsheet for measure
SK-2004-1/2587
– measures in Slovakia
Guarantee Fund
Garančný fond
Background information
The Guarantee fund is made up of insurance contributions of employers in the event of their insolvency, in order to pay the wage claims of employees. The guarantee fund is administered by the Social Insurance Agency (SP) which is a public organization.
The legal regulation is in Act no. 461/2003 Coll. on social insurance (§ 103,116,135,165 and 234) and in Act no. 7/2005 Coll. on bankruptcy and restructuring.
The guarantee covers non-paid wages, bonuses, holiday remuneration, severance payments and travel expenses. The guarantee also covers mandatory contributions to old-age pension savings (Pension II pillar) unpaid by employers
Content of measure
An employer is considered insolvent if they have filed for insolvency at the court. Workers in an employment relationship of at least 18 months before the insolvency of their employer are eligible.
However, employees of the state, public organisations, support organisations, national funds and municipalities, as well as domestic workers in a family business or people working for their family relatives who have not entered into an employment relationship are not eligible. The benefit covers employees wage claims for a maximum duration of three months.
To get access to the wage guarantee benefits, the employee has to apply within 60 days after the insolvency or termination of the employment relationship. The Social Insurance Agency has to decide and pay the benefit within 60 days from the application.
Use of measure
The number of beneficiaries of benefits from the Guarantee Fund was higher during the economic crisis - in 2009 it was 676 per month, then their number decreased - in 2017 it was 121 beneficiaries per month. However, the number of beneficiaries increased to 248 per month in 2019, only to drop to 108 per month in 2021 during the Covid-19 pandemic.
In 2017, the average benefit paid to an employee was €1,587. In 2018, there was a slight decrease, but in 2019 it increased again to €2,173. In 2021, the average benefit paid to an employee reached €2,176. The total value of benefits paid annually also fluctuated, from around €2.3 million in 2017 to around €6.5 million in 2019. During the Covid-19 pandemic in 2021, the total expenditure on these benefits amounted to €2.8 million.
More information is available in the
ERM legal database
.
Target groups
Actors and funding
|
Actors
|
Funding
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National government
Company / Companies
Social insurance
Public support service providers
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Companies
Employer
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
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Unknown
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Unknown
|
|
Form
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Not applicable
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Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Unknown
-
Main level of involvement: Unknown
Involvement
Unknown
Views and reactions
In the record of the interdepartmental comment procedure on the draft law on social insurance at that time (May - June 2003), there were no comments from the social partners on the provisions on the Guarantee Fund. See the meeting of the Government of the Slovak Republic on June 11, 2003
Sources
