More than €231 million paid out in wage compensation over three months

Unemployment Insurance Fund (Töötukassa) logo.
Unemployment Insurance Fund (Töötukassa) logo. Source: Siim Lõvi /ERR

The Estonian Unemployment Insurance Fund (Töötukassa) has paid €231.7 million in wage compensations to 136,709 people since the start of April. The average amount of the subsidy was €703.2 and accomodation, catering and manufacturing industries received the most compensations.

Meelis Paavel, CEO of the Unemployment Insurance Fund, said the compensation helped avoid a sharp recession and also softened the shock on employment.

Paavel said: "If most companies can continue with the support of wage compensations, then this measure has proven itself."

In total, 17,584 companies applied for compensation for 137,399 employees. The most popular times to apply for compensation were the first weeks of the last three months and the most applications were made on the first Mondays of both May and June: 34,159 applications were made on June 1 and 31,720 on May 4.

Compensation was assigned to 136,709 employees, of which 27,258 recieved compensated for one months' work and 109,451 for two months' work. Compensation was assigned to 33,675 people in March, 121,494 in April, and 91,130 in May.

The average size of subsidy was €703.2 and the total amount assigned over three months was €231.7 million. A total of €27.6 million was assigned in March, €113.7 million in April, and €90.4 million in May.

26.9 percent of the subsidy assignees in March were for businesses in the accomodation and catering sectors. In April and May, workers in the industrial sector were assigned the most subsidies, making up 22.8 percent and 28.6 percent of the total assignees respectively.

Close to 81 percent of companies which applied for compensation were small companies. OÜ Hansaliin, a member of the Tallink Grupp, was assigned the most compensation, totalling €4.2 million. Hansaliin was followed by Eesti Kaevandused, which received €1.84 million and industrial company Norma, which received €1.79 million in salary compensations.

Salary compensations were not assigned to 1,100 persons, mainly because their employer did not meet the requirements for the decline in turnover or revenue as compared to last year. "Fictive employment" also declined, meaning the people who had registered employment only for benefits.

Preliminary assessments show in the case of 350 persons, extraordinary wage compensations were declined and a recovery claim was made because the employer had violated a restriction on layoffs or the person had been registered for incapacity for work for the month.

200 applications were withdrawn after the Insurance Fund asked for further explanations or documents.


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Editor: Kristjan Kallaste

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