Companies, SPs Start Filing for Corona Aid

By , 14 Apr 2020, 18:54 PM Business
Companies, SPs Start Filing for Corona Aid JL Flanner

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STA, 14 April 2020 - Those eligible for state aid under the EUR 3 billion fiscal stimulus package designed to mitigate the coronavirus crisis for businesses and households have started filing their requests. The Employment Service received 1,154 applications from companies with idle employees between Saturday and Monday.

If you're an SP you can find out how to apply for this aid here - fast, easy and online

Before the stimulus package came into force on Saturday, companies had been filing requests for aid under a less favourable emergency law passed earlier. Unofficially, 8,441 such requests had been filed.

The Employment service told the STA today the data was yet to be analysed, as some employers had filed multiple requests.

Under the emergency law, which took effect on 29 March, idle workers were to get 80% wage compensation, of which 40% would be covered by the state and 60% by their company.

However, under the new stimulus package act the state is to cover the entire 80% compensation, based on a worker's average monthly pay from the last three months.

Some companies have filed separate requests for aid under each of the two laws, although the Employment Service says all applications will be processed under the new law.

All efforts are being put in the processing of applications to make sure employers receive decisions as soon as possible, the Employment Service said.

"We have also significantly expanded our team in charge of registration procedures, as we are dealing with increasingly many applications for registration of businesses these days," it added.

The Employment Service is also offering technical support over the phone or online to those who want to start a business or file for wage compensation.

Eligible for state aid are companies that saw more than a 20% drop in revenue in the first six months of the year and whose revenue in the second half of the year will not rise by more than 50% year-on-year.

Companies founded this year will have to have at least 25% drop in revenue in March and at least 50% revenue drop in April or May compared to February to receive aid.

Only companies that owe no liabilities to the state, are not in receivership, and are not a direct or indirect user of the state budget or municipal budget of the municipality which receives more than 70% of the funds from the state will be able to get aid.

Banks and insurance companies are not eligible.

The self-employed, who will be exempt of payment of all social security contributions for April and May, and will receive a monthly "basic income" of EUR 350 in March and EUR 700 in April and May each, can expect aid from 25 April.

But only those who suffered at last a 25% drop in revenue in March compared to February, and at least a 50% drop in April or May compared to February, are eligible.

If their revenue in the first six months of the year exceeds that from the first half of 2019 by more than 20%, and if their revenue in the second half of the year increases by more than 20% year on year, they will have to return the money.

Religious workers and farmers are also eligible for the "basic income" and will be excused from payment of contributions if they submit a statement by the end of May, saying they cannot perform their activities as usual because of the coronavirus epidemic.

The "basic income" will be paid out by the Financial Administration (FURS). Those who submit the statement by 18 April should receive it on 25 April.

FURS told the STA it had so far received 13,500 requests from the self-employed. Statistics Office data shows there were slightly fewer than 31,000 self-employed in the country at the end of 2019.

We’ll have details of how to file for this online very soon

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