Temporary subsidy is paid to the employees of those employers whose activities have been significantly disrupted due to restrictions imposed for the prevention of COVID-19.
An employer can apply for temporary subsidy for employees, if:
- their turnover or income for the calendar month for which temporary subsidy is claimed has fallen by at least 50 per cent in comparison with
- the average turnover or income for the period December 2019 through February 2020, or
- the average turnover or income for the period July 2020 through December 2020;
- they can no longer provide employees with work in the agreed volume (§ 35 of the Employment Contracts Act applies) or they have reduced the remuneration of the employees (§ 37 of the Employment Contracts Act applies);
- they are not the subject of compulsory dissolution, liquidation or bankruptcy proceedings and at the moment of application they had no tax arrears or they have been deferred.
Temporary subsidy shall be paid for March, April and May 2021 to employees:
- for whom work cannot be provided in the agreed volume or whose salary has been reduced, and
- whose date of commencement of employment with the employer claiming the benefit is 1 January 2021, at the latest, and the employment relationship continues.
Compensation shall not be paid for an employee who was on sick leave or unpaid leave for the entire calendar month for which the benefit is being claimed.
The Estonian Unemployment Insurance Fund pays the employee compensation in the amount 60% of the employee's average monthly salary, but not more than EUR 1000 (gross).
Prior to applying for the benefit, the employer is obliged to pay the employee at least EUR 200 (gross) for the month for which they are requesting compensation to pay the employee. The compensation paid by the Estonian Unemployment Insurance Fund and the total salary paid by the employer guarantee a full-time employee at least the minimum wage, i.e. EUR 584.
Self-employed persons whose business income in 2020 was 50% lower than in 2019 can also apply for compensation. The amount of compensation for an FIE is EUR 584 per month.
An employer may not lay-off employees who have received benefits during the calendar month for which compensation is being claimed, nor during the following two calendar months. A self-employed person may also not suspend or terminate their activities.
Applications for temporary subsidy can only be submitted for March from 1 April to 30 April 2021, for April from 1 May to 31 May 2021 and for May from 1 June to 30 June 2021 via the e-Unemployment Insurance Fund.
Additional information can be obtained from the Unemployment Insurance Fund’s help line 15501