AmCham, Other Business Organizations Pave Way for Changes to Wage Subsidy System

  • April 21, 2020
On April 20, the government announced amendments to the economic relief action plan’s job protection subsidy system to expand the range of beneficiaries and ease the application process following regular consultations with AmCham and other business organizations.

Since the action plan was released on April 10, the chamber has advocated for changes to

  • ease the burden on employers,
  • expand the criteria for eligibility to cover more companies and employees,
  • include temporary workers, remote workers, employees in home office,
  • cover workplaces operating with allocated cumulative working time,
  • simplify the administration process,
  • revise the individual development time plan

among others.

We are delighted that the new measures are in line with our proposals, providing businesses with more support and flexibility.

According to the new system, the subsidy is expanded to 2 hours of employment per day and now covers part-time workers, teleworkers, employees in home office, temporary employment agencies, as well as associations and NGOs which do not benefit from the budget. However, due to EU rules, those who receive wage subsidies from EU funds cannot receive state wage subsidies.

Upon application, the basic salary on the day of application will be taken into consideration and employers no longer have to declare the cause of the economic difficulties. In addition, businesses can apply for a 2 year job-retainment loan to cover salaries for 9 months with an interest rate of 0.1%.

The retention obligation now only applies to employees supported by the subsidy, not the entire staff. Moreover, contract amendments, reduced work hours and development time agreements do not have to be concluded individually with all employees as these contracts are amended by the government decree.

Furthermore, the plan gives applicants 2 years to complete the allocated individual development and training, providing even more flexbility.

The revised system is a great step in the right direction and the government has indicated they are open to further improvements.

Since the beginning of the crisis, AmCham has been engaged with the government to help manage the economic fallout and we will continue working with the decision-makers find the best possible solutions for all parties affected by the pandemic: the people, the businesses and the state.

We would like to thank our members for their invaluable input. We will continue to rely on your expertise to help the economy recover from this difficult situation.




Chief Executive Officer