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Which points should be addressed before entering into a contract?


Lisatud 20.12.2016 | Uuendatud 18.09.2020

Before we issue the wage subsidy, we must enter into a wage subsidy contract under public law. 

Please make sure to sign the wage subsidy contract as soon as possible, but definitely before the commencement of the work.

If the employment relationship commences before the wage subsidy contract is entered into, your application will be rejected.

The estimated monthly salary (gross) in the wage subsidy application is binding in the case of wage subsidy and the subsidy amount is 50% of this amount. If the salary might change during the wage subsidy period, for example after the probationary period, please enter the maximum possible salary in the expected monthly salary row.

In the case of protected employment, the wage subsidy contract must be entered into one day after the completion of stage II of the protected employment.

You can read more about protected employment here: protected employment.

The wage subsidy is state aid, specifically de minimis aid, and the wage subsidy cannot exceed the de minimis aid limit imposed on the field of the respective company or the activity that is supported with the wage subsidy. Additional information about state aid can be found on the Ministry of Finance website. Unemployment Insurance Fund checks the de minimis aid amounts you have received in the current year and in the two previous years from the State Aid Register in order to ensure adherence to the limit.

As an employer, you are required to forward information about compensation for holiday pay from state budget to the Estonian Unemployment Insurance Fund in written form and other documents at the request of the Unemployment Insurance Fund which prove the existence of an employment relationship and its duration, payment of wages, etc.

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