Second Package Of COVID 19 Related State Aid Measures Adopted By The Serbian Government

• Published date: 04 August 2020
• Subject Matter: Finance and Banking, Employment and HR, Coronavirus (COVID-19), Project Finance/PPP & PFI, Employee Benefits & Compensation, Government Measures, Employment and Workforce Wellbeing, Financing, Operational Impacts and Strategy
• Law Firm: Kinstellar
• Author: Ms Dragana Bajic

3 August 2020 - On its session held on 30 July 2020, the Serbian Government adopted the Conclusion no. 05 401-6052 / 2020 (the ''Conclusion'' or ''Second Package"), which extends the application of the first package of direct and fiscal benefits to business entities in the private sector, that was introduced in the Decree on Fiscal Benefits and Direct Aid to Companies in the Private Sector and Monetary Aid to Citizens Aimed at Reducing Economic Consequences due to COVID-19 (the "First Package").

According to the Conclusion, all micro, small and medium size entities which benefited from the First Package shall be automatically eligible for the Second Package and shall receive 60% of what they received in July 2020, once in August and once in September 2020.

Companies classified as large entities, provided that they benefited from the First Package and that they are still eligible for direct aid, may apply for the Second Package by filing the so-called SL form by 15 August 2020. Large entities can get direct aid for every employee sent to paid leave due to work disruption for more than 15 days in the relevant month and upon payment of salary compensation in the amount of at least 60% of the average salary received within the last 12 months prior to commencement of leave. According to the Second Package, in August 2020 such large entity shall receive 50% of the March minimum wage for each employee who was on the above mentioned paid leave for more than 15 days in June,

Entities that were established between 15 March and 20 July 2020 may apply for the direct aid by filing the so-called PPP-PD form for August by 15 September 2020, in which they would state 5 January 2021 as the date of payment of social contributions and salary tax. In that case, such entities will receive a one-time payment in the amount of 120% of the March minimum wage for each employee...