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The COVID-19 Act provides for the subsidizing part of the costs of the employees’ remunerations and social insurance contributions due on them where the revenues achieved from statutory activities have dropped as a consequence of COVID-19 which is addressed not only to entrepreneurs but also to non-governmental organizations. The decision concerning the application of that form of aid has been left to individual county governors (starosts), which shows the local dimension of the solution.

Who is eligible?

The entities eligible to obtain subsidies from starosts are the non-governmental organizations and those referred to in art. 3.3 of the Public Benefit and Volunteer Work Act of 24 April 2003.

Granting subsidies covers remunerations of individuals employed on contracts of employment basis, working on contracts for outwork basis or providing work on the basis of civil-law contracts for work, or on other contracts for provision of services to which regulations on contracts for commissioned work apply.

Drop in revenues

The prerequisite for obtaining the aid is a decrease in revenues gained from statutory activity. This means a decrease in revenues calculated as the ratio of the aggregate revenues from the statutory activity conducted during selected 2 consecutive months within the period following 1 January 2020 until the date preceding the date of filing the application for subsidy, as compared to the aggregate revenues gained from statutory activity during the 2 corresponding months of the preceding year (e.g. if the application is filed in May 2020,  the comparison should be made between March and April 2020 and March and April 2019).  

Subsidy amount

The maximum amount of the subsidy depends on the level of decrease in revenue achieved from the statutory activity, and is as follows:

  1. With the drop of revenue of at least than 30% - the maximum amount of the subsidy is 50% of the remuneration of individual employees plus the social insurance (ZUS) contributions, not more however than 50% of the minimum remuneration (PLN 1,300) plus ZUS contributions, for each employee;
  2. With the drop of revenue of at least 50% - the maximum amount of the subsidy is 70% of the remuneration of individual employees plus the social insurance (ZUS) contributions, not more however than 70% of the minimum remuneration (PLN 1,820) plus ZUS contributions, for each employee;
  3. With the drop of revenue of at least 80% - the maximum amount of the subsidy is 90% of the remuneration of individual employees plus the social insurance (ZUS) contributions, not more however than 90% of the minimum remuneration (PLN 2,340) plus ZUS contributions, for each employee.

Period of subsidizing

Begins from the date of filing the application and lasts for a period no longer than 3 months. The provisions of Shield 2.0 stipulate precisely – the period under consideration is no longer than 3 months following the month of filing the application. The subsidy is paid on monthly basis.   

Other criteria

  • granting the subsidy is conditional upon sustaining the jobs – the employer submits a statement on the number of contracted employees every month. Shield 2.0 has lifted the obligation to sustain those jobs also after the period of subsidizing
  • timely payment of taxes, social insurance contributions, health insurance contributions, Guaranteed Employee Benefit Fund contributions or Solidarity Fund contributions until the third quarter of the year 2019
  • the organization shall not be granted a subsidy by the starost in the part in which the same costs have been or will be subsidized from other public funds

Time limit for filing an application

The application requesting subsidy must be filed with the poviat employment agency having jurisdiction over the location of the organization’s headquarters within 14 days following the date of announcement of the call for filing by the poviat employment agency director.

 

Contact:

Aleksandra Głuszek

prawnik

a.gluszek@gessel.pl