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Salary subsidies from the Guaranteed Employee Benefits Fund (FGŚP)

On 31st March 2020, an amendment to the Act on Special Measures for the Prevention, Control and Management of COVID-19 was adopted as part of the so-called Anti-Crisis Shield (subsequently, the regulations were amended by the Act on Special Support Instruments in Connection with the Spread of SARS-CoV-2 Virus of 16th April 2020).

The new solutions include salary subsidies for companies who have suffered a decline in turnover.

 

Salary subsidies from the Guaranteed Employee Benefits Fund (FGŚP)

 

Who can apply?

Any business that has suffered a decline in turnover attributable to COVID-19; the subsidy is available regardless of company size.

Whom to apply to?

Applications are to be filed with Provincial Labour Offices (Wojewódzkie Urzędy Pracy, WUPs); payments will be made from the Guaranteed Employee Benefits Fund on the basis of agreements concluded through the WUPs.

What can be financed from the  subsidy?

Salaries of employees, remuneration of individuals working under service contracts (umowa zlecenie) and agreements for provision of services, except for self-employed individuals working under B2B contracts along with social security contributions payable on the subsidy.

What is the duration of the grant?

A maximum of 3 months, with an option for the Council of Ministers to extend this period.

What are the conditions for eligibility?

The business must:

  • Have had a decline in turnover, understood as a decrease in the sales of goods or services by at least 15% when comparing two consecutive calendar months in 2020 to the same period in 2019, or by at least 25% based on a month-to-month change in 2020.
  • Conclude an agreement with trade unions/employee representatives concerning the introduction of economic downtime or reduced working hours.
  • Retain the workers for the duration of the subsidy (up to 3 months).
Who will not be covered by the subsidy?

Workers whose remuneration in the month preceding the date of filing the application was higher than 300% of the average monthly remuneration from the previous quarter as announced by the Central Statistical Office – GUS (PLN 15,595.74 gross).

 

Economic downtime versus reduced working hours

 

Option I – Economic downtime

Workers remain on standby but do not work for reasons not attributable to tchem.

Conditions:

The employer will pay a salary reduced by not more than 50% and not lower than the national minimum salary, taking into account the worker’s working time.

Subsidy amount:

50% of the national minimum salary, taking into account the working time (PLN 1,300 for 1 FTE) + social insurance contributions (PLN 233.09) = PLN 1,533.09 gross in total.

Case study:

A full-time employee earns PLN 4,000 gross (the costs for the employer is approx. PLN 4,800). The employer has reduced their salary by 30% (to PLN 2,800 gross). The subsidy the employer can obtain is PLN 1,300 (50% of the minimum salary) + contributions (1,533.09 gross).

The final cost for the employer will be approx. PLN 1,837 (i.e. the gross salary of PLN 2,800 (with the cost borne by the employer being approx. PLN 3,370) less PLN 1,533.09).

 

Option II – Reduced working hours

Workers do work but for fewer hours than agreed in their contracts.

Conditions:

The employer will reduce the working time by a maximum of 20%, however no more than to 0.5 FTE, and consequently reduce the salary on a pro-rata basis, provided that the resulting salary may not be lower than the  national minimum salary, taking into account the employee’s working time .

Subsidy amount:

50% of the reduced salary, but not more than 40% of the average monthly salary from the previous quarter as announced by the Central Statistical Office (PLN 2,079.43) + social insurance contributions (PLN 372.84) = PLN 2,452.27 gross in total.

Case study:

A full-time employee earns PLN 4,000 gross (the costs for the employer is approx. PLN 4,800). The employer has reduced their working time by 20% (to 0.8 FTE) and consequently their salary has been reduced to PLN 3,200. The subsidy the employer can obtain is PLN 1,600 (50% of the reduced salary) + contributions (PLN 260.16), i.e. a total of PLN 1,860.16 gross. The final cost for the employer will be approx. PLN 1,940 (i.e. the gross salary of PLN 3,200 (with the cost borne by the employer being approx. PLN 3,800) less PLN 1,860.16).

 

The first applications for subsidies from the FGŚP were already submitted in the first week of April. If you are considering applying, it is advisable to do so as soon as possible. K&P offers comprehensive legal assistance in applying for COVID-19-related benefits.
If you have any questions or doubts, our team will be at your disposal.

 

CONTACT US

Anna Gwiazda
Attorney at Law, Partner, Head of Labor Law Practice
T: +48 660 765 903
E: a.gwiazda@kochanski.pl


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