The details of the government aid package for entrepreneurs struggling with the consequences of the coronavirus pandemic are already known. Both companies and employees can count on State support.
The total value of the announced public aid will amount to PLN 211 billion. The aim of introducing the anti-crisis shield is to mitigate some of the negative effects of the COVID-19 pandemic on Polish business.
Anti-crisis shield – key assumptions:
Support for employers:
- possibility of deferring or spreading the social security contributions into instalments without additional prolongation fees
- the possibility of deferring or distributing into instalments without additional prolongation fees payments of:
- possibility for companies employing up to 9 employees to receive a loan of PLN 5 thousand paid out from the Labour Fund. The loan is to be non-refundable if the company does not decide to dismiss the employees for the following 6 months
- increase in guarantees and financial liquidity support (possibility of obtaining a loan up to PLN 3.5 million with BGK’s guarantee of 80% of the loan value; BGK’s Fund for small and medium enterprises for the loan interest of up to PLN 500 million)
- downtime payments for a company in which both the working hours and wages drop to 50% of the contracted ones, if the company records a 15% drop in turnover in the last 6 months (if the company does not decide to dismiss employees)
Support for employees:
- financing 40% of the employees’ remuneration up to the average salary, with the obligation for the employer to cover the second 40% with the employee’s consent to reduce the remuneration by 20% (in a situation where the company’s turnover has decreased by more than 15%)
- benefits for persons employed under civil-law contracts and the self-employed, i.e. payment of the guaranteed benefit from the Social Insurance Institution (ZUS) in the amount not less than 80% of the minimum wage – about PLN 2,000 gross per month
- extension of the care allowance for children up to 8 years of age (currently 14 days) in the case of prolonged closure of schools, nurseries and kindergartens
- automatic extension of visas and work permits for foreigners
Learn more: Coronavirus: The possibility of deferring ZUS payments