Unemployment benefits should not be raised, says employers' body ({{commentsTotal}})

The manufacturing sector remains one of the largest employers in Estonia (picture is illustrative).
The manufacturing sector remains one of the largest employers in Estonia (picture is illustrative). Source: Priit Mürk/ERR

The Estonian Employers' Confederation (ETTK) says that unemployment insurance (Töötukassa) benefits and other related benefits should not be increased significantly from current levels, as this may weaken incentives for staying in employment and engaging in self-development, as well as increasing the tax burden. In this, the ETTK is in accord with the Ministry of Social Affairs, though the ETTK would even prefer benefits to be lowered, Baltic News Service reports.

In a letter to the Ministry of Social Affairs expressing its opinion on a ministry draft stating unemployment insurance premium rates will not be changed in the years 2020–2023, the ETTK said that while employers accept the rates staying as they are, they would prefer a cut.

The cut would be justifiable given that not only will the unemployment reserve soon reach a billion euros, unemployment is at a record low, the ETTK said.

The ETTK also said that the Unemployment Insurance Fund should be redeveloped in support of people either staying in employment, returning to employment or joining lifelong learning programs, in order to continue the fund's sustainability.

The ETTK also claimed that Töötukassa funds should not be put to uses other than their original intention, including other public expenditure programs.

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Editor: Andrew Whyte



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