Unemployment Fund aid to employees 

Compensation of average salaries to employees , whose activity disturbed by extraordinary circumstances

Crowe DNW Ltd
3/26/2020

Estonian Government adopted measures to support employers to continue employment contracts during the state of emergency and avoid redundancy.
Since April 1, 2020 the employer can apply for compensation of 70% of average wages to be paid to employees if the two of the following criteria met:

  1) the turnover of the employer or, in the absence thereof, the income for the calendar month for which the compensation is claimed has decreased by at least 30% compared to the turnover or income of the same month of the previous year;

  2) the employer does not have the agreed volume of employment for at least 30% of the employees and the employer applies § 35 or § 37 of the Employment Contracts Act;

  3) pursuant to § 37 of the Employment Contracts Act, the employer has reduced the salary of at least 30% of the employees by at least 30% or to the minimum wage established by the Government of the Republic.

These benefits may be applied for two of three months during period March to May 2020. The measures may be extended and depend on availability of amounts in the Unemployment Fund.

Detailed terms presented in the Employment Program 2017-2020 or send a query to dnw@crowe.ee if you need assistance in application.