The subsidy will be open for online applications on 1 July.
Principles of paying the subsidy
The subsidy is paid, when an employer has suffered at least a 50% decline in turnover or revenue as compared to the month of June last year. In addition, they must comply with at least one of the following terms:
The employer is not able to provide at least 50 percent of their employees with work and the work load of the employees has been cut by at least 30%.
The employer has cut the wages of at least 50% of employees by at least 30% or down to the minimum wage.
Salary subsidy for June can be applied until 31.07.2020.
The employer must have cut the wages or work load of their employees for the whole month of June.
Both private and state organizations are eligible for the subsidies, independent of the size of the organization.
Only employers without tax debt or paying their tax debt in instalments (as agreed with the Tax and Customs Board) can apply to have the June salaries of their employees subsidized.
An employer can apply for the salaries of contracted employees to be subsidized, in case the contract was signed and registered in the employment register of the Estonian Tax and Customs Board before March the 1st, 2020.
Subsidies will be paid to employees whose employers are not able to provide them with work or whose wages have been reduced.
The amount of the subsidy will be 50% of the average monthly wage of the employee. The maximum amount of the subsidy is €800. In addition to that, the employer must pay a wage of at least €150 to the employee. The employer must make their payment before applying for the subsidy.
The employee will receive at least the minimum wage of €584 from the Unemployment Insurance Fund and their employer, collectively. In case the employee has thus far received less than the minimum wage due to working part-time, their income will remain the same as before.
In July, employers may apply to have the June salaries subsidized for the same employees whose salaries were subsidized in March, April or May. Thus, an employee's salary may be subsidized for a maximum of three months instead of two.
The Unemploymend Insurance Fund will pay social security, unemployment insurance tax and mandatory funded pension, and income tax on the subsidy, the employer will pay the aforementioned taxes on the employee’s wage.
The employer will be applying for the temporary subsidy, but it will be paid directly to the employees;
The subsidy will be paid for the month of June;
The employer will send an application to the Unemployment Insurance Fund after having paid the wages to their employees.
If the employer terminates the contract with the employee due to redundancy in June or in the course of two following calendar months, the subsidy is to be returned to the Fund.
Applying for the temporary subsidy
The application for the subsidy is available in e-töötukassa since 1 July.
We suggest employers double check the authorization of personnel they intend to have send the applications and if needs be, write a letter of authorization for the person who will be filling the application.
Should you have any questions, send us an e-mail tth [ä] tootukassa [dot] ee or call 15501.