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What kind of salary is taken as the basis for the calculation of the benefit?

Prindi

Lisatud 27.10.2013 | Uuendatud 27.10.2013

According to the provisions of the national legal acts every member country decides individually who is entitled to the benefit, how much is paid and for how long. 

When your last country of employment was a foreign country but you have decided to return to Estonia and start looking for work here and you have been granted the benefit (provided you meet the criteria of a cross-border worker or permanent resident), the salaries earned in the foreign country are included in the calculation of the amount of your unemployment insurance benefit.

For example, let us say you have worked in Finland for a year with a monthly salary of 2,000 EUR. Upon termination of the fixed-term employment contract you returned to Estonia and applied for the unemployment insurance benefit here because when working in Finland you retained your main centre of interest in Estonia and your permanent country of residence is also Estonia. The amount of your benefit is calculated on the basis of the salary earned in Finland taking into account the maximum limit of the benefit which is three times the average remuneration per calendar day in Estonia during the last calendar year. The amount exceeding the maximum limit shall not be taken into account.

If your last employment was in Estonia and the working period was shorter than 12 months and you had worked in a foreign country before termination of the last employment contract, the amount of your benefit shall be calculated on the basis of the payments made to you during the nine months of employment in Estonia prior to the last three months of employment from which unemployment insurance premiums have been withheld.

In calculation of the amount of benefit the payments made to you during the nine months of employment in Estonia prior to the last three months of employment from which unemployment insurance premiums have been withheld shall be divided by 270.

For example you worked in Finland from January to February 2011 (2 months). From March to December 2011 you worked in Estonia (10 months). In calculation of the amount of benefit only the payments made to you during the nine months of employment in Estonia prior to the last three months of employment shall be taken into account, therefore, the payments made from March to September 2011 in Estonia shall be taken into account. 

 

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