This day is also an opportunity to consider how we contribute to improving the position of persons with disabilities in our society. It is important to reflect on the current situation, recognize the challenges faced by persons with disabilities, and consider opportunities for improvement. One of the key issues is how employers can contribute to increasing the employability of persons with disabilities and what incentives are available to facilitate their inclusion in the labour market. This article focuses precisely on this – reviewing the current incentives, opportunities, and support mechanisms available to employers in Slovenia.
A noteworthy report by the World Health Organization is that persons with disabilities make up 16% of the global population.[1] According to the Employment Services of the Republic of Slovenia, persons with disabilities represent approximately 16% of all registered unemployed;[2] considering that a certain percentage of people with disabilities retire early due to disability, this figure indicates that they are at a disadvantage. This is often due to stigmatization, limited availability of adapted workplaces, lack of support for training, and other systemic barriers. These critical facts demonstrate the necessity for the social responsibility of employers and social partners to find ways to incentivize the employment of such persons.
Incentives for the employment of persons with disabilities in Slovenia
The Public Scholarship, Development, Disability and Maintenance Fund of the Republic of Slovenia incentivizes employees to create a supportive environment for employment of persons with disabilities. Employers, especially those employing 20 or more workers, are likely familiar with the employment quota for persons with disabilities, which ranges from 2 to 6%, depending on the sector of an employer’s main activity.
Perhaps a less well-known fact is that the Fund also provides financial incentives for employing persons with disabilities, such as:
- Bonuses for exceeding the quota;
- Exemption from paying pension and disability insurance contributions;
- Wage subsidies for employees with disabilities;
- Reimbursement of costs for support services;
- Payment of costs for workplace and equipment adaptations; and
- Financing of vehicle adaptations.
Specific criteria and conditions for different applications are outlined in the Vocational Rehabilitation and Employment of Persons with Disabilities Act,[3] the Decree establishing employment quota for persons with disabilities,[4] and other applicable regulations.
It is thus possible for an employer to leverage financial incentives to create a more inclusive work environment. Key incentives that employers can utilize to support employees with disabilities effectively are outlined below.
Bonuses for exceeding quota obligations
The bonus for exceeding the quota is an incentive available to employers who exceed quota obligations, i.e. (i) employers with 20 or more employees who employ more persons with disabilities than required by the quota; and (ii) employers with fewer than 20 employees who employ persons with disabilities. The bonus is applicable only if an employee’s disability was not caused by a work-related injury or occupational disease attributable to an employer.
Such employers may claim a bonus of 20% of the minimum wage per month for each employee above the quota. This bonus incentivizes businesses to go beyond statutory obligations and foster a more inclusive workforce.
Exemptions from pension and disability insurance contributions
Employers exceeding quota obligations may qualify for exemptions from paying pension and disability insurance contributions for employees with disabilities. Similarly to the bonus, the exemption is also applicable only if the disability was not caused by a work-related injury or occupational disease attributable to the employer.
Exemptions are granted based on monthly applications and apply to employees exceeding quota obligations, prioritizing those with the most recent employment start dates.
Wage subsidies
Employees with disabilities working in protected employment, supported employment or a disability company, may be granted a wage subsidy due to the achievement of lower work results because of their disability. These subsidies are integral to ensuring compliance with wage standards while promoting inclusion.
Conditions for eligibility for this wage subsidy are strict and only concern certain employment situations:
- Protected Employment: Employees are entitled to subsidies of up to 70% of the minimum wage; and
- Supported Employment and Disability Companies: Employees are entitled to subsidies of up to 30% of the minimum wage.
If a wage subsidy is granted, employers must ensure the combined salary (basic salary plus wage subsidy) meets at least the minimum wage prescribed by the law or relevant collective agreements.
It should be noted that applications for the right to subsidies must be submitted by employees with disabilities, while reimbursement is claimed by employers.
Reimbursement for support services
Supported employment contracts may include support services essential for enabling employees with disabilities to perform their tasks. Employers can seek reimbursement for these services by applying to the Fund, along with a prepared support services plan.
Support for workplace and equipment adaptations
The employer may also request funding from the Fund for suitable workplace and equipment adaptations based on an individualized adaptation plan. This can facilitate adaptations tailored to the needs of employees with disabilities. However, the individualized adaptation plan must demonstrate that an employee with a disability can only be employed in a specifically adapted workplace or requires adapted tools and equipment to perform their work tasks.
With the expansion of work from home (WFH), recent times have shown that, thanks to advancements in technology, a significant portion of tasks once performed in offices can now effectively be done remotely. Similarly, these same advancements and potentially additional minor adaptations could also facilitate access to roles for persons with disabilities that were previously inaccessible. Obtaining support for the individualized adaptation of work from home arrangements or setups could open up new opportunities for persons with disabilities.
Vehicle adaptations
The Fund also provides financing for vehicle adaptations or the purchase of a new adapted vehicle for an employed person with a disability. In contrast to the other financial incentives, the Fund only disburses funds, while the decision must be issued by the competent administrative unit, upon the submission of the necessary documentation.
Promoting inclusion through action
It should be highlighted that a new amendment to the Companies Act (ZGD-1M) has been adopted. The changes include extending sustainability reporting to include environmental, social and governance (ESG) factors for certain companies. Among the mandatory disclosures are the areas of employment law, labour law and human resources, the so-called Standard S, covering social standards, which include the employment and inclusion of persons with disabilities.[5]
The above-mentioned financial incentives demonstrate Slovenia’s commitment to creating a more inclusive workplace for persons with disabilities. By leveraging these incentives, employers can improve their strategies for their social standards while benefiting from a diverse workforce.
For more information on incentives offered by the Fund, visit their official website.[6]
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[1] https://www.who.int/health-topics/disability (last accessed: 2 December 2024).
[2] https://www.ess.gov.si/fileadmin/user_upload/Trg_dela/Dokumenti_TD/Mesecne_informacije/MI_2024_1.pdf (last accessed: 2 December 2024).
[3] Vocational Rehabilitation and Employment of Persons with Disabilities Act (in Slovenian: Zakon o zaposlitveni rehabilitaciji in zaposlovanju invalidov; Official Gazette of the Republic of Slovenia, no. 63/04 as amended, “ZZRZI”).
[4] Decree establishing employment quota for persons with disabilities (in Slovenian: Uredba o določitvi kvote za zaposlovanje invalidov; Official Gazette of the Republic of Slovenia, no. 21/14 as amended).
[5] https://www.jadek-pensa.si/obvezna-razkritja-s-kadrovskega-podrocja-v-okviru-esg-porocanja/ (last accessed: 2 December 2024).
[6] https://www.srips-rs.si/en/employment-people-disabilities (last accessed: 2 December 2024).
