Government approves concept to introduce Kurzarbeit in Slovakia

A separate insurance fund for 'kurzarbeit' (short-time work) should be launched as of 2022 as proposed by the Labour Ministry and approved by the Government on Wednesday. The draft concept contains several options for paying taxes and levies, with the amount for the employee equalling approximately 80 percent of their net salary. For the purpose of introducing a new insurance system, it is proposed to create a new insurance fund within the state-run social-insurance company Sociálna poisťovňa (SP). Employers based in Slovakia should contribute to this without increasing the current contribution burden. According to the proposal, the basic condition for granting the benefit should be a limit to operating activity, which must take place due to external factors of a temporary nature that the employer cannot influence and as a result of which he cannot assign work to at least one third of the employees. The concept also considers the application of the new system in relation to self-employed people.