Unemployment benefit payout amount to grow by quarter over four years ({{commentsTotal}})

The Estonian Unemployment Insurance Fund (EUIF) office on Tartu's Vaksali Street.
The Estonian Unemployment Insurance Fund (EUIF) office on Tartu's Vaksali Street. Source: Aili Vahtla/ERR

The amount of money necessary for the payment of unemployment insurance benefits in Estonia is set to grow by a quarter over the next four years to €65.7 million in 2022.

According to estimates by the Estonian Unemployment Insurance Fund (Haigekassa), the unemployment insurance benefit is to be awarded to 20,800 people this year in the total amount of €52.5 million. While the number of recipients is not estimated to change significantly in the next few years, the necessary amount of money is seen to increase by 5-6% per year to €65.7 million in 2022, it appears from a draft government regulation establishing unemployment insurance premiums.

Hence the sum total necessary for the payout of unemployment insurance benefits will increase, mainly as a result of the general increase in wages.

The size of the unemployment insurance benefit per calendar day is 50% of the insured person's average wage per calendar day for the period until 100 calendar days after loss of employment and 40% for the period of 101 to 360 calendar days after loss of employment.

The cost of the unemployment insurance benefit accounts for only one-third of the total expenses of unemployment insurance. In 2019, for instance, expenses for the payment of unemployment insurance benefits are planned to total €55.3 million , expenses for the payment of the benefit upon lay-off €13.3 million, expenses for the payment of the benefit upon insolvency of the employer €4.2 million, expenses for the payment of social tax on the benefits €12.9 million, labour market services and benefits €32.4 million, and Haigekassa's operating expenses €45.1 million, making for a total of €163.1 million.

Editor: Aili Vahtla

Source: BNS



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