What are the benefits?
Borrowers of soft loans under the financial instrument Entrepreneurship Promotion Fund 2014–2020 financed by the European Social Fund (EPF2) are eligible for compensation of labour costs for every employee working under an employment contract who will be paid at least the minimum wage. This will make it easier for entrepreneurs to consolidate their market position, especially during the start-up phase.
What companies are eligible?
Micro or small companies and natural persons operating as sole proprietors or under a business certificate which meet the status of a SME under the SME Law and are EPF2 borrowers.
What is the maximum amount?
The fixed monthly rate of partial compensation of labour costs is set at EUR 498.48 and the minimum availability period is 12 months.
|EPF2 borrower||Eligible part of fixed rate|
A priority group is a group of persons encountering labour market or business organisation difficulties, i.e. unemployed persons registered with the territorial labour exchange for at least 6 months, disabled persons, persons under 29 years of age, persons above 54 years of age, women and those who create and/or will create “green” jobs.
In total, EUR 16,000,000 has been allocated for the implementation of these projects from the European Social Fund.
How does it work?
To take advantage of the instrument, an application must be submitted to INVEGA. Wages will be compensated on a quarterly basis.
How is the amount of compensation calculated?
The amount of eligible costs per employee is calculated by multiplying the fixed rate (EUR 498.48) by the number of calendar months for which the amount of wages before taxes (gross) calculated for the employee was at least the minimum monthly wage and multiplying by the funding intensity of 75% or 50%.
For instance, if a company had 5 employees between July and September 2017 whose gross wages were EUR 380.00 but one employee was on an unpaid leave in September and his/her calculated wage was EUR 360.00, the amount of the employee wages eligible for compensation is calculated as follows: 498.48 x (4*3+1*2) = 6,978.72*0.5 (or *0.75 if the applicant belongs to the priority group).