Government extends wage compensation measure to cover June

An Estonian Unemployment Insurance Fund (Töötukassa) office on Vaksali Street in Tartu.
An Estonian Unemployment Insurance Fund (Töötukassa) office on Vaksali Street in Tartu. Source: Aili Vahtla/ERR

The government on Thursday decided to support continuing with the current Estonian Unemployment Insurance Fund wage compensation measure in June.

Under new conditions, the revenue or turnover of the company must have decreased by at least 50 percent compared to June of the previous year.

Additionally, an employer must meet one out of two following conditions - the company is in a situation where it does not have work to give in the agreed amount to at least 50 percent of employees or the wages of at least 50 percent of the company's workers have been lowered at least 30 percent or to the minimum wage.

In June, the Unemployment Insurance Fund will compensate to the employee 50 percent of their previous average wage, but no more than €800 a month gross, and no less than the minimum wage.

The employer is obliged to pay the employees receiving the compensation a gross pay of at least €150 a month, which must be paid out before the application is filed. Instead of the current one month, the employer must guarantee a job for at least the next two months.

The fund measure has guaranteed income for more than 123,000 people and jobs in at least 16,000 companies.


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Editor: Anders Nõmm

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