Government support for business and workers in Poland

1.    A company may not decrease the salary of each employee by more than 50%. In any case, the remuneration cannot be lower than the statutory minimum wage (PLN gross 2,600 for FTE). Figures for part time workers should be calculated proportionally. A company can exercise this option to those employees who cannot perform work as a result of pandemic COVID-19, despite being ready to work (economic downtime). The subsidy is granted for max. 3 months.

2.    A company can decrease the working time of each employee by up to 20%, but only down to 0.5 FTE. In any case, the remuneration cannot be lower than the statutory minimum wage (PLN gross 2,600 for FTE). Figures for part time workers should be calculated proportionally. The government will co-finance half of the salary but no more than PLN gross 2,079.43 per employee. Figures for part time workers should be calculated proportionally. The subsidy also covers social security contributions due for the co-financed parts of the salaries. The subsidy is granted for max. 3 months.

3.    A relevant staroste can finance part of the employee remuneration costs and the associated social security contributions upon company request. This option only applies to micro-, small- and medium-level companies (with average annual employment of less than 250 and an annual net turnover of no more than a PLN equivalent of 50 million euro). The maximum amount of subsidy for an individual employee is PLN 2,340 + social security contributions due for the amount. The co-financing is granted for a period not exceeding 3 months. This subsidy cannot cover costs that were or will be funded from other public funds.

4.    Some employers might also, upon meeting several conditions, apply for release from the obligation to pay social security contributions for its employees. Self-employed workers or workers working based on civil law contracts might, upon meeting several conditions, apply for a stoppage allowance, which can be paid out up to 3 times.

Under option 1, the government will subsidize a company and cover the amount of 50% of the minimum statutory wage (PLN gross 1,300) per employee concerned. Figures for part time workers should be calculated proportionally. The subsidy also covers social security contributions due for the co-financed parts of the salaries.

Under option 2, the government will co-finance half of the salary but no more than PLN gross 2,079.43 per employee. Figures for part time workers should be calculated proportionally. The subsidy also covers social security contributions due for the co-financed parts of the salaries.

Under option 3, the government grants a subsidy, whose maximum amount for an individual employee is PLN 2,340 + social security contributions due for the amount.

Under option 4, with respect to a stoppage allowance, it amounts up to PLN 2080 and is paid by the social security institution.

Both options 1 and 2 are only available if the company experienced a drop in economic turnover of 15/25% (depending on the calculation method). A company can exercise option 1 only to the employees who cannot perform work as a result of the COVID-19 pandemic, despite being ready to work (economic downtime). With respect to option 2, in our opinion this can be applied to those employees who perform their work. For both options, a company cannot request a co-financing for an employee for whom it has already received a subsidy for unemployment, job protection or disability or whose remuneration for the preceding month was higher than 300% of the average monthly salary for a previous quarter (currently – PLN gross 15,595.74).
 
Option 3 applies only to micro-, small- and medium-level companies that experienced a drop in economic turnover.

With respect to option 4, release from social security might be generally requested by an employer hiring up to 49 employees and the stoppage allowance can be requested by the self-employed workers and civil law contractors – both upon meeting several statutory conditions.

In order to implement option 1 or option 2, a company must conclude an agreement with trade unions or employee representatives. The agreement must cover the conditions of work during a period of economic downtime or of reduced working hours. A company submits the agreement to the labour office within 5 working days. The application for a subsidy must be submitted to the relevant labour office.

Option 3 and 4 require submitting a relevant application to the startoste / social security institution.

In options 1 and 2, the company cannot generally have arrears in social security, health insurance, tax, etc.

With respect to options 1 and 2, a company cannot make redundant the employees for whom it received subsidy during a period of receiving a subsidy. In option 3, the company must continue to hire employees covered by subsidy during the period of co-financing.