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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure SK-2020-13/291 Updated – measures in Slovakia

Broadening active labour market policy programmes - supporting job retention

Rozšírenie programov aktívnej politiky trhu práce – podpora pri zachovaní pracovného miest

Country Slovakia , applies nationwide
Time period Temporary, 27 March 2020 – 31 December 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Employment protection and retention
– Income support for people in employment (e.g., short-time work)
Author Rastislav Bednarik (IVPR) and Eurofound
Measure added 06 April 2020 (updated 20 October 2021)
Related ERM support instrument

Background information

The legislator, through the Act 63/2020 Coll., introduced an enlargement of the eligibility conditions for financial contributions to active labor market policy measures.

This instrument is aimed to support projects finalized to save jobs, including the ones where self-employment is carried out or operated. It also supports projects aimed at maintaining employees in employment in connection with the declaration of an emergency like the ones concerning the COVID-19 epidemic. This measure was Number 1 in a package of measures called 'First Aid'. Due to great interest, the Government has three times extended the period of implementation of this project (including measure Number 1) to support the maintenance of employment (20 May, 15 July and 23 September).

Content of measure

The contribution will be provided to the employer or self-employed who, despite the difficult situation, decides not to dismiss workers or to maintain a job within the active labour market policy (ALMP) projects.

Support is provided through the Ministry of Labor, Social Affairs and Family or via the Center of Labor, Social Affairs and Family, when the conditions and scope of support is approved by the Government of the Slovak Republic.

The maximum total amount of the contribution for one applicant (employer) is €800,000 for the period of project implementation. The basic conditions for providing the allowance are that:

  • the employer/self-employed pays to the employee a wage compensation in the amount of 80% of his average earnings;
  • the employer/self-employed does not initiate termination of employment by notice or agreement;
  • that on 31 December 2019 the company was not in difficulties.

The contribution is not intended for self-employed themselves, but is limited to self-employed people who have hired one or more employees.

The amount of the allowance for one employee corresponds to the compensation of the employee's salary in the amount of 80% of his average earnings, up to a maximum of €1,100. Self-employed will receive the contribution to pay the salaries of their employees.

The contribution is provided from 13 March 2020, until the end of the calendar month in which the restrictive measures taken by the Public Health Office of the Slovak Republic will be revoked.

Updates

The following updates to this measure have been made after it came into effect.

01 July 2021

From 1 July to 31 December 2021, the measure is again available but will be applied by regions according to the outcomes of Slovak alert system called COVID automat. The measure will be available if the total number of regions/districts in the country denoted by monitoring level (green colour) is not more than 39.

18 January 2021

The measure was replaced by the new measure SK-2020-40/1593. SK-2020-40/1593

23 September 2020

The government has amended the measure three times so far. 2 April and 22 April was a simplification of administration when applying for a grant. And at its meeting on 23 September 2020, the government extended the validity of the measure until the end of 2020.

01 July 2020

This measure was Number 1 in a package of measures called 'First Aid'.

Use of measure

The amount of funding will depend on the capacity provided by the European Social Fund or the state budget, or other sources. At present, it is not possible to identify the exact number of employers concerned. The amount of the contribution and the determination of precise conditions shall be determined by the Government. In March, April and May 2020, a total of 13,838 applicants applied for such assistance for 109,902 employees in the total amount of €40.810 million. The financing consisted of a contribution from the European Social Fund (85%) and a contribution from the state budget of the Slovak Republic (15%). (Information requested from Central Office of Labour, Social Affairs and Family).

From March to July 2020, within Measure no. 1 provided subsidies were about €57.9 million. They saved 65,469 jobs in March, 56,339 in April, 23,822 in May, 1,649 in June 2020 and 309 jobs in July. According to ISP, in March, the use of Measure 1 had a particularly large share, for example, in the wholesale and retail sector. Later on, the share of subsidies in this sector significantly decreased. The most of support concerned sectors: G (wholesale and retail trade), I (accommodation and food service activities), R (arts, entertainment, recreation) and, in terms of the size, small and micro-enterprises.

Target groups

Workers Businesses Citizens
Employees in standard employment
Self-employed
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
European Funds
National funds

Social partners

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

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: Unknown

Involvement

Informal ad-hoc consultations.

Views and reactions

Social partners were not involved in the designing and in the implementation of the measure.

Sources

  • 31 March 2020: Návrh podmienok projektu podpory udržania zamestnanosti v čase vyhlásenej mimoriadnej situácie, núdzového stavu alebo výnimočného stavu a odstránením ich následko (rokovania.gov.sk)
  • 06 April 2020: 63 ACT of 25 March 2020 amending Act no. 461/2003 Coll. on social insurance, (www.slov-lex.sk)
  • 11 September 2020: Institute of Social Policy. First aid to Slovakia (www.employment.gov.sk)
  • 23 September 2020: Návrh na predĺženie obdobia realizácie projektu podpory udržania zamestnanosti v čase vyhlásenej mimoriadnej situácie, núdzového stavu alebo výnimočného stavu a odstránenia ich následko (rokovania.gov.sk)
  • 01 July 2021: Prvá pomoc od 1.7.2021 (www.employment.gov.sk)
  • 01 July 2021: Covid - automat

Citation

Eurofound (2020), Broadening active labour market policy programmes - supporting job retention, measure SK-2020-13/291 (measures in Slovakia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/SK-2020-13_291.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.