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Wage subsidy


Lisatud 07.11.2013 | Uuendatud 28.03.2019

A wage subsidy is the support given to hire unemployed persons. Its purpose is to support the hiring of people who are long-term unemployed, young, of decreased working ability or who have been released from prison.

Please read about "my first job" wage subsidy by clicking here: My first job

Wage subsidies can be requested for both fixed-term employment contracts and employment contracts entered into for an unspecified term. The amount of the subsidy is 50% of the employee's salary (gross) but no more than 50% of the employee's one-month estimated salary provided in the wage subsidy contract that has entered into force and no more than the minimum wage established on the grounds of § 29 section 5 of the  Employment Contracts Act  (470 euros per month in 2017). In the case of the "My first job" subsidy, no more than twice the minimum wage.

A more detailed description of applying for and the payment of wage subsidies is available here: Wage subsidy.  

Wage subsidy is paid on the basis of payments declared to the Tax and Customs Board and for those months during which the employee receives remuneration from which unemployment insurance premiums have been withheld according to the data in the unemployment insurance database.

You can submit the application through the Unemployment Insurance Fund's self-service, via e-mail or on paper to a regional department of the Unemployment Insurance Fund. Please submit wage subsidy application at least 7 working days prior to the commencement of work. If employment commences before the wage subsidy contract is entered into, your application will be rejected.

A person cannot be hired with a wage subsidy if they are studying full-time or acquiring vocational education in full-time studies, including persons on academic leave.

Wage subsidy shall not be paid if an unemployed person is a member of the management or supervisory board of the enterprise that employs the unemployed, a partner in a general or limited partnership or if the unemployed person owns more than 50 per cent of that company.

If a contract other than an employment contract is entered into, e.g. an authorisation agreement or contract for services, the wage subsidy will not be granted.

Wage subsidy may be applied for by a legal person in private law a natural person or an authority of a local government agency. Wage subsidies cannot be applied for by public authorities or legal person in public law.  

A more detailed description of applying for and the payment of wage subsidies is available here: Wage subsidy


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