Measures to compensate salaries

March 20, 2020

The Government of Estonia has introduced measures to help alleviate the effects of the coronavirus crisis for the employers and employees to help prevent mass lay-offs. The Unemployment Fund (www.tootukassa.ee) will be in charge of accepting applications from the employers (probably from April). Conditions apply of course and money will not be simply handed out.

 

1. The period to be compensated is March-May and the employer can choose 2 months from that period. 70% of the gross salary will be compensated for workers that are left without work in that period. So this also applies to workers already laid off.

 

The employers also have to participate in the paying of the compensation. 

 

2. There are 3 conditions that have to be met:

 

2.1. The turnover of the company must have dropped by at least 30 percent compared to the same period last year;

2.2. The company does not have work for at least 30% of the workers;

2.3. The salaries of the workers must have been lowered by at least 30%.

 

The employer has to meet at least 2 of these 3 conditions to be eligible. 

 

3. 70% will be calculated based on the average gross salary of the last 12 months but not more than 1000 euros. The employer must compensate the employee for at least 150 euros and also pay the taxes.

 

 

Lastly, this measure is largely based on trust but the authorities can check if the conditions are actually met or followed. By presenting incorrect data or false claims you can by criminally charged. 

 

 

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