Salary compensation can be requested also for June, conditions stricken

Each employer has the possibility to request from the Unemployment Insurance Fund compensation for salary also for June if the employer’s turnover in June is at least 50 percent lower than in June of the previous year and the salary or working time of at least half of the employees have been decreased during the entire month of June.

• The first condition for receiving the compensation is that the employer’s turnover has decreased at least by half as compared to June of the previous year.
• In order to receive the compensation, there is a condition according to which the employer does not have work for at least 50 percent of the employees in the agreed volume and the working time has been decreased by at least 30 percent or the salary of at least 50 percent of employees has been decreased by at least 30 percent or to the minimum wage.
• The amount of indemnity is 50 percent of the average salary of an employee, but not more than 800 euros per month per employee.
• Employers have the opportunity to request the compensation for June for also the employees who have already received compensation during the period of March to May.

While during previous months it was possible to receive compensation from the Unemployment Insurance Fund also in case if the turnover did not decrease, the first condition of the indemnity is that the employer’s turnover has decreased by at least half as compared to June of the previous year. Additionally, employers are required to meet the condition according to which the employer does not have work for at least 50 percent of the employees in the agreed volume and the working time has been decreased by at least 30 percent or the salary of at least 50 percent of employees has been decreased by at least 30 percent or to the minimum wage.

Furthermore, the requesting employers cannot have tax arrears as of 1 March or the tax arrears must be postponed by the time of submitting the application.

Compensation can be requested only for employees working under an employment contract
Employers can request indemnity for employees working under an employment contract whose date of starting work is no later than 1 March 2020 and who has been entered to the Employment Register as an employee starting work by no later than the previously mentioned date.

Employers can request compensation for June also for the employees who during the period March to May have already received compensation. This means that an employee may receive compensation to the maximum extent of three months instead of the current two months.

Amount of the compensation is maximum 800 euros per employee
The amount of the compensation is 50 percent of the average salary of the employee, but not more than 800 euros per employee per month. Earlier, the maximum indemnity was 1,000 euros. Employers are still obliged to pay at least 150 euros per month to the employees.

Employers are required to return the compensation paid for June to the Unemployment Insurance Fund if the employer lays the employee off in June, July or August.

Applications for the compensations for June can be submitted by employers through the e-service of the Unemployment Insurance Fund. At the moment, the date on which the Unemployment Insurance Fund will be accepting the applications is not yet known.

Read more on Unemployment Insurance Fund’s website or Regulation of the Government.