According to Prime Minister Kaja Kallas, in the situation of the COVID-19 epidemic, it is extremely important to find a balance between restrictions and people’s daily coping. ‘Today’s decision provides relief to those most economically affected by the new restrictions. I understand that many companies have suffered from the COVID-19 crisis for a long time, but the introduction of the new restrictions and the establishment of the new support measures were unavoidable decisions. We all have to adhere to the restrictions to stop the spread of the coronavirus, which will not save only Estonia’s health sector, but also the economy.’
Minister of Health and Labour Tanel Kiik stated that in order to prevent the spread of the virus, the Government has been forced to impose restrictions in several areas. ‘I consider it only right that, in order to preserve people’s jobs, we offer wage support both to those sectors where companies have had to close down temporarily and to those whose activities have been severely affected by the COVID-19 crisis and restrictions. Through a number of unemployment fund measures, we have made an important contribution to maintaining as many jobs as possible during the times of crisis, on which our people’s income and social security depend.’
The March wage compensation approved by the Government today is intended only to pay wages to those employees whose workloads or wages have decreased significantly. The estimated cost of the support measure is around 38 million euros, which will be covered by the Estonian Unemployment Insurance Fund. Self-employed people will also receive support. The estimated cost of their support measure is up to 4.66 million euros and it will be covered by the reserve of the Government.
Companies whose turnover or revenue has decreased by at least 50 percent in March 2021 compared to the average monthly turnover in the period from December 2019 to February 2020 can apply for continued wage support. The support is paid only to employees who have not been employed in the agreed volume or whose wages have been reduced. The Estonian Unemployment Insurance Fund reimburses the employer for 60 percent of the employee’s previous average wages, but not more than 1,000 euros per month (gross).
The employer is obligated to pay a gross remuneration of at least 200 euros to the employee, who receives continued wage support, from their own resources. Companies are not allowed to lay off the employees receiving support until 31 May.
Minister of Entrepreneurship and Information Technology Andres Sutt noted that compared to the last year’s spring support measure, the new wage support is better targeted. ‘The wage support of the Estonian Unemployment Insurance Fund also supports tourism-specific activities and those tourism companies that are directly affected by various restrictions. Undoubtedly, this is a vital aid to the tourism sector to prevent redundancies and keep the people employed,’ Sutt said.
Self-employed persons, whose business income was 50 percent lower in 2020 than in 2019, will also receive support. The amount of the support for self-employed persons is 584 euros.
The applications for continued wage support will be accepted via e-töötukassa from 1 April.
In addition to the remuneration compensated through the Estonian Unemployment Insurance Fund, the members of the Government have approved at the cabinet meeting the support to be allocated from the reserve of the Government to the areas of the Ministry of Education and Research and of the Ministry of Culture.
A package of support for freelance artists in the volume of 1.54 million euros, support for cultural and sports organisations in the volume of 2.8 million euros, and support for private interest education and hobby activities in the total amount of 2.6 million euros were approved. Sectoral supports are managed by the ministries.
