The Government approved the measure for supporting employers and workers in difficulties because of the corona virus
The Government approved the support measure for workers and employers to mitigate the economic difficulties due to the restrictions of the effects of the corona virus.
“I consider it right that at a difficult time, the state comes to the aid of employers and workers and compensates to the workers 70% of their average gross wages of the last 12 months, thus helping employers who have come under pressure to keep the jobs and avoid redundancies. Through this we are also supporting the continued economic activities of companies. If necessary, the Board of the Estonian Unemployment Insurance Fund will consider implementing further support measures,” said the Chairman of the Board of the Estonian Unemployment Insurance Fund and Minister of Social Affairs, Tanel Kiik.
According to the plan, the Estonian Unemployment Insurance Fund will compensate 70% of the average wages from the last 12 months but no more than 1000 Euros. The employers will also contribute, paying at least 150 Euros. Both the Estonian Unemployment Insurance Fund and the employers will pay the social tax and the unemployment insurance premiums from their part themselves. If possible, employers should continue paying the wages they have paid thus far.
All employers who meet two of the three qualification requirements are eligible to apply for the compensation: the turnover or revenue of the employer has fallen at least 30% due to the corona virus compared to the same period last year; the employer does not have work to give to at least 30% of the workers or the employer has had to cut down the wages of at least 30% of the workers by at least 30%. The compensation is paid for only those workers to whom the employer does not have work to give or whose wages have already been cut because of the lack of work load.
This is a temporary measure that is in force from March to May, and the employer can use two months out of that period, as the employers might get into difficulties at different times. This measure is a part of the Government’s package of economic measures with which we wish to help workers and employers.
He support measure comes into force retroactively from March 1, 2020. The cost of the decreased wages compensation measure is 250 million Euros.
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