The state will cover 80% of the monthly gross wage of those employees whose companies had to suspend activity due to special measures introduced to slowdown the spread of the coronavirus, Prime Minister Igor Matovič announced on Sunday. The upper limit is 1,100 euro per month before taxes. It applies only to those employees who can't work (not to those who come to work for maintenance work or other tasks that are still performed at the workplace) and it does not apply to those who are on notice period. A company can get maximum 200,000 euro per month.
Sole traders (živnostníci) and employees of companies that have experienced a decline in sales will receive a monthly allowance depending on the amount of that decline:
-180 euro for a 20% decline
-300 euro for a 40% decline
-420 euro for a 60% decline
-540 euro for a 80% decline
Companies whose sales fall by more than 40% can postpone the payment of mandatory social levies. Such companies can also defer income tax advances.
The government will offer banks a monthly provision worth 500 million euro so they will be able to offer loans with favorable terms to businesses.
The total cost of this package can reach € 1.5 billion, or more than 1% of gross domestic product (GDP) per month.
The measures will have to be approved by Parliament in a fast track procedure. The Government expects the first payments to be made as of April 15th.
