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News2020-03-30

ESF to Help Maintain Jobs in Poland Amidst the Coronavirus Outbreak

European Union
European Union

Employers whose turnover has fallen due to the coronavirus pandemic will be able to seek funding from the European Social Fund (ESF).

The Ministry of Regional Funds and Regional Policy and the Marshalls of the regions in Poland will provide money to pay for employees’ salaries and social security contributions. It is one of the solutions included in the governmental anti-crisis shield project. Małgorzata Jarliańska-Jedynak, Minister of Funds and Regional Policy said "In discussions with the European Commission we managed to set general conditions for using money from the European Social Fund for the reimbursement of expenditure related to the maintenance of jobs."

Entrepreneurs who are self-employed and non-governmental organisations will be able to apply for ESF funding to cover a part of their salaries for employees working both in terms of employment contracts and civil-law contracts, such as agency contracts as well as for those working for agricultural production cooperatives. Minister Małgorzata Jarsińska-Jedynak stated "They will be able to seek EU funding and thus keep their companies afloat with crew, who will be paid in spite of the work being stopped."

Funding will come from the Operational Programem ‘Knowledge Education Development’. Employers will be able to apply for support if their turnover has fallen by at least 30 per cent because of a pandemic. In such a situation, they will be able to apply for EU funding covering 50 percent of the minimum wage. If the employer’s turnover is halved, the employer may apply for measures to cover the cost of a minimum wage in 70 %.Up to 90 percent of the minimum wage per worker may be applied by employers whose turnover has decreased by at least 80 per cent. The aid may be granted for a period of up to 3 months and be paid on a monthly basis.

Entrepreneurs, self-employed persons and non-governmental organisations, that are supported by the European Social Fund, will be required to maintain their employment or continue their activities for the grant period and the same period thereafter. This means support for employment stability for up to half a year.

The programme will start as early as possible after the adoption of an anti-crisis shield by the government. The ministry assumes this will happen in the first half of April. Applications for funding will be submitted to the Poviat Labour Offices. The money will be paid from the Labour Fund and then the European Social Fund will reimburse these costs.

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