The Supervisory Board of the Estonian Unemployment Insurance Fund proposed to the Government of the Republic to compensate the employees of the companies affected by the restrictions for their March salaries. The estimated cost of the subsidy will be EUR 38 million and it is only a one-month support measure.
Which companies can claim wage compensation and under what conditions?
The subsidy is paid to employers operating in areas significantly affected by the restrictions, such as accommodation and catering companies, retail and wholesale companies, tourism companies, sports and leisure activities, in-service training, culture, etc. Eligibility can be checked on the basis of the code of the company’s main area of activity. Find the code of your main area of activity here.
Self-employed people whose business expenses in 2020 were 50 percent lower than in 2019 can also receive support. The amount of self-employment subsidy is EUR 584.
Companies whose turnover or income in March 2021 has decreased by at least 50 percent compared to the period December 2019 – February 2020 can apply for the follow-up wage subsidy. The subsidy is paid to employees who have not been employed in the agreed amount or whose salary has been reduced.
What is the amount of the follow-up wage subsidy and what are the additional conditions for the entrepreneur?
The Unemployment Insurance Fund will compensate the employer 60 percent of the employee’s previous average salary, but not more than EUR 1,000 gross per month. The employer is obliged to pay the employee at least EUR 200. The compensation is transferred to the employer’s bank account with the aim of transferring it for employees’ remuneration in a timely manner.
The company may not lay off employees who have received support until 31 May. Based on the data of the Tax and Customs Board, the Unemployment Insurance Fund checks whether the employer pays the subsidy requested for the employee and the deductible to the employee.
When and how does the submission of wage support applications start?
The receipt of applications for follow-up wage subsidy will begin on 1 April at e-töötukassa. Early submission of an application guarantees the company a quick receipt of the wage subsidy to its bank account and ability to pay the employees in time, so as not to add even more tension and stress to the employees due to lack of money and increased debts.
In conclusion
Over the past year, the Unemployment Insurance Fund has paid support to almost 150,000 employees and about 20,000 companies through various crisis measures. The Unemployment Insurance Fund has paid more than 275 million euros from its reserves for extraordinary support.
If you feel that the article was necessary for you but you still need help in applying for subsidies and organizing the accounting of your company, please feel free to contact us at www.sisi.ee or by e-mail info@sisi.ee
