Slovakia Announces New Unemployment Plan: The Employment Protection Fund
By: The Quinnipiac University Economics Research Team, Nick Ciampanelli
Following the onset of the COVID-19 economic recession, the Slovakian Ministry of Labour implemented a temporary short-time work program – also known as the employment protection fund. Due to the temporary program’s success in reducing the recession’s overall economic impact, the Ministry aims to permanently implement an employment protection fund by 2022. The Ministry states that a permanent short-time work program would mitigate the nation’s economic losses in the event of another regional or global crisis.
The employment protection fund provides 80% of one’s net salary, or a maximum of €1,787 per month (€1,340 from the fund and €447 from their respective employer), to individuals unemployed due to a crisis. As the Ministry of Labour continues implementing this program, they declared income tax rates shall remain constant because funding is shall be sourced from other unemployment benefits programs.
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