"KURZARBEIT" - a permanent job protection system

Kurzarbeit is a new system applicable for companies with employees (it does not apply to self-employed person and also single-person limited liability company).

It introduced a new Social insurance deduction in the amount of 0,5% called financing of support during part-time work (PFP) but at the same time, lower the already applicable deduction of unemployment insurance from 1% to 0,5% which left the final amount that the employer pays untouched (with a few exceptions, e.g. part time retired person).

The system serves to help the employer in difficult times – to maintain jobs by reducing employer’s wage costs. The support is applicable if the employer is unable to temporarily assign the employee to full time due to an unfavorable situation beyond his control, and thus agrees to the employee on part-time.

Its effectiveness begins on March 1, 2022, and the first applications are submitted in April, always for the previous calendar month.

How does it work?

The employee is entitled to compensation of wages in the amount of min. 80%:

State aid - 60% of the average earnings of an employee in the calendar month for which the support is provided, but not more than 60% of 1/174two-times the average wage in the Slovak economy published by the Statistical Office of the Slovak Republic for the calendar year preceding the calendar year in which the support is provided;
the rest is financed by the employer.

The subsidy from the state can be provided for a maximum of 6 months in 24 consecutive months.

A practical example

In March 2022, the employee had 110 hours of obstacles at work due to limited employer activities during part-time work. His average hourly earnings for the 4th quarter of 2021 were 5 EUR / hour.

State subsidy = 60% x average hourly earnings x number of hours of obstacles

State subsidy = 60% x 5 EUR x 110 hours = 330 EUR

Conditions for entitlement to support:

Employer	Employee
activity restrictions	obstacle at work
compulsory insurance for a period of at least 24 months	employment at least 1 month before the application
may not violate the ban on illegal employment	active employee
written agreement with the employee / employee representative	took all holiday days for the previous calendar year
submission of the state aid application form by the end of the following calendar month	cannot be reassigned to another position
obligation to keep the job min. 2 months after the end of the calendar month for which the subsidy was provided	he cannot be granted any other state subsidy

You can find more information on the website: www.skratenapraca.gov.sk .

Wage compensation in case of obstacles on the part of the employer

As of March 1, 2022, in the case of an employer's application for support during part-time work, the employee is entitled to a wage compensation in the amount of min. 80% of his average earnings.