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The Government approved a measure for supporting employers and employees who are struggling due to the coronavirus

23.03.2020


The Government approved a support measure to relieve the economic difficulties caused by the restrictions to employers and employees due to the coronavirus.

‘I believe that when times are hard, the state must help employees and employers, which is why we will compensate 70 per cent of the average gross wages of the last 12 months to employees in order to help struggling employers preserve jobs and avoid layoffs. This will also help to maintain the economic activities of employers. If necessary, the Estonian Unemployment Insurance Fund Council will consider amending their current support measures and applying new measures,’ said Tanel Kiik, Chairman of the Unemployment Insurance Fund Council and Minister of Social Affairs.

According to the plan, the Unemployment Insurance Fund will compensate 70% of employees’ average wages of the last 12 months, but no more than 1,000 euros. Employers themselves will have to contribute at least 150 euros. The social tax and unemployment insurance premium of their shares will be paid by the Unemployment Insurance Fund and employers. If possible, employers should keep paying current wages.

The benefit may be claimed by any employer, regardless of the size of the company, if they meet two out of these three conditions: as a result of the coronavirus, their turnover or revenues have decreased by at least 30% compared to the same period of the previous year, they are unable to assign occupational duties to at least 30% of employees, or have had to decrease the wages of at least 30% of employees by at least 30%. Benefits will be paid only for those employees who are left without occupational duties or whose wage has already been decreased due to a smaller workload.

This is a temporary measure, in force from March to May, and usable to employers for two months, because difficulties may occur at different times. This measure is a part of the package of economic measures to help employees and employers.

The support measure will come into force retroactively from 1 March 2020. The cost of the measure of compensating a decrease in wages is 250 million euros.

Stay informed of the updates and amendments on the website of the Government of the Republic of Estonia. 

Read more:

An overview of the articles about the coronavirus on Tööelu.

Frequently asked questions in connection with the coronavirus (teleworking, business trips abroad, lay-offs, holiday without pay).

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The Government approved a measure for supporting employers and employees who are struggling due to the coronavirus
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