New round of governmental support expected in Slovenia

New round of governmental support expected in Slovenia

The Slovenian government issued the first round of support measures for the economy last week when they published the intervention act. These measures will help to support business in Slovenia during the time of coronavirus outbreak. Now, the governmental officials have proposed a new round of measures to help the economy in Slovenia even further. It is expected that the measures will be incorporated as early as this week.

Experts at Data d.o.o. have been supporting entrepreneurs with business in Europe for the past 30 years. In addition to company registration procedures, we also provide quality accounting services. Our specialized team of legal advisors can support you with understanding the Slovenian business legislation. Additionally, they can also provide legal support in taking advantage of these new measures during this extraordinary time.

What does the proposition for the new round of economic measures include?

At this stage the new round of measures is still a proposition. It is expected that the government will accept it by Friday. The proposition includes:
– a new way and amount of compensation of salaries in companies where they had to partially or in full discontinue the business conduct due to the epidemic,
– new assessment of economic damage that companies endured due to the epidemic,
– and a general framework for reimbursement.

The new round of measures plans to ensure the conservation of jobs, social stability, economic capacity, public services, potentials in science, culture and society itself.

Details on the content of the new round of governmental measures to support the economy

The government proposed this new round of measures mainly to freeze the current state and conserve jobs as well as company liquidity. This new round will also include support for sole proprietors and retired persons.

Companies that will have to put employees on waitlist due to the epidemic can expect governmental support. It will be even bigger than in the first round of measures. The new round of measures predicts the full payment of social contributions for employees on waitlist. Also, the Insurance office will cover sick leave of employees through the duration of the pandemic from the first day of illness. Additionally, those employees who cannot come to work due to force majeure (absence of public transportation, childcare) will have equal status to those who are on waitlist. The duration of the measures would last until 31st May 2020 or even longer should the circumstances not improve. Employees who would lose their jobs due to force majeure, would be automatically eligible for unemployment benefits.

Sole proprietors would be able to submit an online application explaining how the epidemic affected their business and would be able to receive 70% of the NET minimum wage. The proposition also includes that the government will pay the social contributions for sole proprietors until the end of May and also predicts deferment of advanced payment of income tax.

Retired persons with the lowest pensions and people from the most vulnerable social groups would receive a »crisis allowance«.

Preventing illiquidity for companies is also one of the tasks of the new round of measures

To assure the continuity of supply as well as the stability of the healthcare system, also law and order, the proposal also includes additional rewards to employees with additional workload or hazardous tasks. Those can include those employed in production, healthcare, police etc. The government would refund the rewards to employers at a later point.
The new round of measures also include support to prevent companies from closing. Mostly, this will include a warranty scheme and purchase of receivables by the state. These measures would prevent a chain of illiquidity. The proposal includes freezing tax payments and shortening payment deadlines to private companies, which are reduced to eight days.

Turn to Data d.o.o. for support in applying for governmental measures

Slovenia has proposed one of the most generous economic measures to fight the consequences of coronavirus. It covers almost all affected groups, both individuals as well as companies. It would prevent further economic damage in the country and make sure that the economy will prosper again, even through foreign investment. Also, it is a sign that the Slovenian government takes care of its residents as well as its companies, which also provides great comfort to those who are just in the planning stages and considering expanding their business here.

Do not hesitate and turn to DATA for support for your business in Slovenia. For more information, you can write to our email data@data.si. You can also contact us over the phone 00386 1 6006 270 or 00386 40 530 718 (Viber, WhatsApp). Additionally, follow us on Facebook.

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