Subsidising part of the remuneration costs of employees for associations and other NGOs from the district head – Article 15zze of the COVID-19 Act

Who is entitled?

1. Non-governmental organisations, including associations and foundations, or

2. The entity referred to in Article 3 section 3 of the Act of 24 April 2003 on Public Benefit and Volunteer Work.

To what kind of remuneration?

1. Employees’ remuneration;

2. Persons’ employed under an employment contract or a contract of mandate or other contract for the provision of services.

What conditions must be met?

1. There must be a reduction of at least 30% in turnover from statutory activities following the occurrence of COVID; and

2. The entity cannot be in arrears in the payment of tax liabilities, social security contributions, health insurance, Guaranteed Employee Benefits Fund, Labour Fund or Solidarity Fund until the third quarter of 2019.

What is meant by a decrease in turnover and how is it calculated?

The decrease in turnover from statutory activities shall be understood as the decrease in turnover from these activities calculated as the ratio of the total turnover from statutory activities during any 2 consecutive calendar months, falling in the period after 1 January 2020 to the day preceding the date of submission of the application for a subsidy as compared to the total turnover from statutory activities during the same 2 consecutive calendar months of the previous year;

Thirty consecutive calendar days are also considered as a month if the two-month comparative period starts during a calendar month, i.e. on a day other than the first day of the given calendar month.

For what period is it granted?

For a period of no more than 3 months as of the month of submitting the application. The subsidy is paid on a monthly basis.

What amount of subsidy can be applied for?

The amount of a subsidy depends on the amount of decrease in turnover from statutory activities. If it is a decrease of:

1) at least 30%,

the subsidy may be granted in the amount not exceeding the sum of 50% of the remuneration of individual employees covered by the application for a subsidy together with the social security contributions due from these remuneration, but not more than 50% of the amount of the minimum remuneration, increased by social security contributions from the employer with respect to each employee i.e. not more than PLN 1,300 and social security contributions in the amount of 50%;

2) at least 50%,

the subsidy may be granted in an amount not exceeding the sum of 70% of the remuneration of individual employees covered by the application for a subsidy together with the social security contributions due from these remuneration, but not more than 70% of the amount of the minimum remuneration, increased by social security contributions from the employer with respect to each employee, i.e. the amount of PLN 1,820 and social security contributions in the amount of 70%;

3) at least 80%,

the subsidy may be granted in an amount not exceeding the sum of 90% of the remuneration of individual employees covered by the application for a subsidy together with the social security contributions due from these remuneration, but not more than 90% of the amount of the minimum remuneration, increased by social security contributions from the employer with respect to each employee i.e. the amount of PLN 2,340 and social security contributions in the amount of 90%.

Is it necessary to have employees? 

Maintain the employment level under contract for the period for which the subsidy is awarded.

What if I do not comply with the condition of employment of employees on contracts?

In case of failure to comply with this condition, the subsidy shall be returned without interest, proportionately to the period of non-employment of the employee, within 30 days as of the date of delivery of the call of the district head.

What steps need to be taken to get the subsidy?

Submit an application for a subsidy to the district employment office having jurisdiction over the seat within 14 days as of the date of announcement of enrolment call by the head of the district employment office.

Additional information

It is not possible to receive a subsidy to the extent that the same costs were or will be financed by other public funds.

Beata Bieniek-Wiera, attorney-at-law