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The government directed an additional 147.9 million euros to the foundation of labour market services and benefits

21. May 2020 - 0:00

Tallinn, Stenbock House, 21 May 2020 – At their meeting, the government supported the proposal of the supervisory board of the Estonian Unemployment Insurance Fund to allocate an additional 147.9 million euros to compensate employees for the reduction of wages during the crisis.

On the proposal of the supervisory board of the Estonian Unemployment Insurance Fund, the government decided to transfer to the foundation 23% of the unused assets that have, in previous years, accumulated to the unemployment insurance benefit trust fund and the trust fund for benefits upon insolvency of employers to cover the costs of the current wage compensation measure in force from March to May.

The transfer of assets will allow payments to be made from the current wage compensation measure and is part of the measure’s estimated cost of 250 million euros.

If the foundation requires more resources due to the exceptional need of the labour market, the government may decide to transfer up to 30% of the trust funds’ assets to the foundation.