The amount to be paid from the fund shall be calculated by the Insolvency Control Service on the basis of a submission from the administrator, the documents appended thereto, the information provided by the State Revenue Service and other State administrative authorities.
The amount to be paid to the employee for remuneration, remuneration for annual paid leave, remuneration for other forms of paid absences and severance allowance shall not exceed the amount of the employee's income declared in the State Revenue Service during the relevant period.
The calculation uses the average daily earnings of the calendar day, which is EUR 24,658 in 2021.
KDI = 1.5 x MIN x 12/365 where
KDI - average earnings per calendar day
1,5 – coefficient applicable to the national minimum monthly wages at around the date of the occurrence of the employer's insolvency case
MIN - the amount of the national minimum monthly salary on the date of the occurrence of the employer's insolvency case
12 - the number of calendar months per year;
365 - the number of calendar days per year.
In 2021, the average daily earnings per calendar day is 24,658 1.5 x 500 x 12/365 = 24,658
The maximum gross amount to be allocated from the Fund per employee is EUR 3698,70, resulting from:
- wages and/or remuneration for other forms of paid absences for the last three months of the employment legal relationship during the 12 months preceding the occurrence of the employer's insolvency case, up to a total of 92 calendar days. Total EUR 2268,54.
- reimbursements for annual paid leave for which rights were acquired during the 12-month period prior to the occurrence of the employer's insolvency, up to a maximum of 28 calendar days. A total of EUR 690,42.
- in the cases specified in Section 112 of the Employment Act, the rights of which have been acquired not earlier than within a period of 12 months prior to the occurrence of the employer's insolvency case for 30 calendar days. A total of EUR 739,74.
|Type of claim
of calendar days
Maximum gross amount
to be granted from
the employee claims guarantee fund in 2021 (KDI in 2021 = EUR 24,658), in euro
Remuneration and remuneration for other forms of paid absences
for the last three months of the employment legal relationship
in the 12-month period prior to the occurrence of the employer's insolvency case
|Remuneration for annual paid leave for which rights were acquired during the 12-month period preceding the occurrence of the employer's insolvency case
The insolvency control service shall not take over the employer's debts and the claims of employees shall be covered in a limited amount of not more than one and a half minimum salary per month and for a specified period.
If the salary was less than one and a half minimum monthly salary, payment from the fund may be received to the extent that it would have been calculated in the company's accounts for the period in question.
If the total amount of the employee's claim exceeds what is to be satisfied from the funds of the fund, the employee's claim in the remaining part shall be satisfied from the debtor's property in accordance with the procedures specified in the Law on Insolvency.
The claims of employees in the remainder, which are not covered by the fund, shall be satisfied from the sale of the employer's property, subject to the procedures for covering creditors' claims. Therefore, further communication should be made with the administrator.