Crisis supplement in Slovenia – do business owners have to pay it?

Business owners in Slovenia, is payment of a crisis supplement mandatory? It is an allowance that is included in the Intervention Act to ease the effects of coronavirus epidemic. Which workers have to receive crisis supplement? You have a business in Slovenia and have to prepare your salary calculation for March and you are not sure whether you have to pay crisis supplements to your employees? Does the employee receive it for work in March, April and May 2020?  Or do they receive it only for work in April and May 2020? Is it mandatory for all workers? Do employers have a choice and do not have to pay a crisis supplement? Our legal department addresses these questions in this article.

Are you a business owner in Slovenia? Do you need help in understanding the governmental measures that your company could apply for? Are you having trouble understanding what is best for your business? Call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on  [email protected]

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Business owners, do you have to pay the crisis supplement to all employees?

The payment of the crisis supplement is not mandatory for all employees who work during the epidemic. It applies to employees in the public sector.

It also does not include employees in the following sectors: direct and indirect users of the state budget and direct and indirect users of municipal budgets. Also, financial and insurance companies (registered under group K in the standard classification of activities) also cannot pay this supplement to their employees.

Do you have to pay a crisis supplement?

The Intervention Act requires an employer to pay a crisis supplement to every employee who works. However, there are no legal sanctions for employers who will not pay it.

State Secretary of Ministry of Labor believes that employers must pay a proportional part of the supplement for March 2020. The State Secretary also believes that they have no choice when it comes to the payment obligation.

For which months do the employees have to receive the supplement?

The Article 33 of the Intervention Act states that employers are exempt from paying pension and disability insurance contributions in April and May 2020 for employees who work during that time.

Employers, who are exempt from paying contributions, pay a monthly crisis supplement to each employee who works. The condition is that the employee’s last paid monthly salary did not exceed three times the minimum wage in Slovenia. The supplement is 200 EUR and is exempt from all taxes and contributions and is not included in the annual tax advance.

Based on Article 33, it can be argued that employers who are exempt from paying pension and disability insurance contributions in April and May 2020 have to pay a monthly crisis supplement. Following the interpretation of this article, we conclude that employers who are exempt from paying pension and disability insurance contributions are required to pay a crisis allowance. The supplement relates to work in the months of April and May 2020.

Payment of supplement – interpretation of Slovenian institutions

The Financial Administration (FURS) Handbook, entitled “Frequently Asked Questions and Answers on Coronavirus Mitigation Tax Measures,” states that private employers pay each employee working at the time of the epidemic a monthly crisis benefit. In this interpretation the crisis supplement has to be paid for months of March, April and May 2020, provided that the last paid monthly salary did not exceed three times the amount of minimum wage.

The State Secretary of the Ministry of Labor explained that the purpose of the first paragraph of Article 33 of the ZIUZEOP is to relate the exemption from the pension and disability insurance contributions for wages paid for work from the beginning of the epidemic, ie for work from March 13 onwards. Although otherwise stated in the Act, the purpose of the Act is to exempt from the payment of contributions and payment of the crisis allowance of 13.3.2020 onwards.

The Intervention Act and the interpretation of the Financial Administrative do not coincide. Do business owners have to pay the crisis supplement?

We believe that there was a dilemma whether employers have to pay the supplement for work during the whole epidemic. The interpretation of the Financial administration and the diction of the Law do not coincide. However, given the published manual prepared by the Financial Administration and the explanation of the Secretary of State of the Ministry of Labor, the employer would have to pay the proportional part of the crisis supplement for March 2020.

Are you a business owner in Slovenia? Do you need help in understanding the governmental measures that your company could apply for? Are you having trouble understanding what is best for your business? Call our experts on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or write to us on  [email protected]