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Slovenian government swiftly adopts a range of measures to help businesses affected by the current health crisis

On Thursday the Slovenian parliament passed a set of laws aimed at reducing the economic impact of the coronavirus crisis. Measures include financial compensation for temporary lay-offs and deferrals of loan repayments and tax duties for companies.

The biggest rescue package includes providing financial aid for workers that will be laid off as a direct result of the coronavirus crisis. The aid is allocated for workers at companies that will need to temporarily reduce their workforce by at least 30% due to disruptions in supply or a drop in demand. 

The act, worth around EUR 50 million, stipulates that temporarily laid-off workers will be entitled to 80% of their salary average from the past three months, with the employers having to cover 60% of this sum and the state 40%. 

The maximum temporary lay-off period will be three months and employers using the aid will have to commit to having the temporarily redundant workers employed for at least six months after sending them home. 

The state will also provide aid to workers who are unable to work as a result of self-isolation, but the state will cover the full 80% for such instances. 

Self-employed workers will also get help by being able to defer social contribution payments for the coming three months by up to two years. 

The pressure on business will meanwhile also be mitigated with an act that reduces the administrative and tax burdens on companies, pushing back the deadlines for tax filings and allowing companies to request a tax deferral of up to two years or pay tax in up to 24 instalments. 

The government will be able to reallocate funds without a supplementary budget, or more precisely on the basis of a supplementary budget that need not be submitted to parliament until up to 90 days after the crisis ends. 

Another emergency act adopted will allow banks to defer liabilities of companies, co-operatives, self-employed and farmers by 12 months. Banks will be compelled to do so for those whose operations have been thwarted under government measures to contain the coronavirus outbreak. The act will also apply to loans taken out during the epidemic. 

 

 

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