The seventh package of measures to mitigate the effects of the epidemic (PKP7)

06 January 2021

On 29 December 2020, the National Assembly passed the seventh in a series of anti-coronavirus legislative packages (Act Determining Intervention Measures to Assist in Mitigating the Consequences of the Second Wave of COVID-19 Epidemic - ZIUPOPDVE). PKP 7, worth EUR 550 million, entered into force on 31 December 2020.

The law introduces new measures to help the economy, a solidarity allowance for certain vulnerable groups of the population and additional aid to health care, tourism, carriers, social and health workers.

Measures to help the economy
PKP 7 introduces some changes to the conditions for eligibility for the partial subsidy measure of fixed costs introduced by PKP 6, namely The cap on the payment of the maximum amount of reimbursement of fixed costs relating to employees in the eligible period is increased to EUR 2,000 per month employee or self-employed person or company member, shareholder or founder of a cooperative or institution in cases where the beneficiary shows more than 70% decrease in income in the eligible period. In addition, the definition of employees to be taken into account in calculating the limit is changed - the average number of employees is calculated as the number of working hours in the period from 1 December 2019 to 30 November 2020 for which employees received salary and salary compensation at the expense of the employer, whereas beneficiaries who submitted applications before the entry into force of PKP 7 can choose the option that is more favorable for them (more information in the news item "Measure of partial subsidization of fixed costs").

Those companies most affected by the crisis will also be able to benefit from special loans from SID Bank and the Slovenian Enterprise Fund with a state guarantee. The law also provides for compensation of costs for transport operators.

Allowances for certain groups of the population
A solidarity allowance will be given to pensioners, students, recipients of child allowance, parents with several children, older farmers and employees who receive benefits of up to two minimum wages.

Pensioners with pensions up to EUR 714 will be paid the allowance in three different amounts:
¥ for those receiving a pension of up to EUR 510 in the amount of EUR 300,
¥ for those receiving a pension of between EUR 510.01 and EUR 612 in the amount of EUR 230, and
¥ for those receiving a pension of between EUR 612.01 and EUR 714, in the amount of EUR 130.
Low-income employees, whose last paid monthly salary did not exceed twice the minimum wage must be paid a solidarity allowance of EUR 200 by their employer for the month of December 2020, which is exempt from all taxes and contributions.

Persons whose employment contract has been terminated due to business reasons or due to expiry of fixed-term employment contract concluded from 18 October 2020 onwards, the law introduces temporary compensation for loss of employment in the amount of EUR 513.64 gross per month, for the duration of the declared epidemics.

Students and low-income farmers over the age of 65 will receive a one-off solidarity allowance of EUR 150.

Families with children will receive a one-off solidarity allowance of EUR 50 for a child under the age of 18. Parents who receive child benefit will be paid the allowance automatically, while the payment to parents who do not receive child benefit will depend on the submission of the application (the deadline is 31 January 2021). The childcare allowance is increased by EUR 100 and will be paid for the period from October 2020 until the end of the epidemic. The amount of the annual allowance for large families is increased by EUR 100 for families with three children and by EUR 200 for families with four or more children for the period until the end of the epidemic. A one-off allowance of EUR 500 will also be paid for newborns born between 1 January 2020 and one year after the end of the epidemic.

Measures in the field of healthcare
For employees in hospitals and nursing homes, an hourly rate increase of at least 30 percent is envisaged. For those healthcare workers who work in particularly risky conditions, including public works, the hourly rate will increase by 65 percent. The Republic of Slovenia will provide funds from the state budget or funds obtained from the European Union budget for the implementation of mass testing for the presence of covid-19. In addition, medical devices needed to combat covid-19 will be exempt from VAT (until no later than 31 December 2022).

Measures to help the firefighters
The seventh anti-coronavirus legislative package provides compensation for loss of funds to voluntary fire brigades for the purchase of personal protective equipment, common equipment and fire trucks.

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