Posted on Tuesday March 31st, 2020 by Ragnar Sepp

State support – temporary subsidy program

In the context of the corona virus and the resulting economic crisis, Estonia initiates the national program to support its business sector. The objective of the program is to partially compensate employees for their wages decrease. The subsidy can be claimed by any Estonian company regardless of its size and activity field.



Here is a guide on how the compensation will be paid:

      1. The company-employer submits the application on the internet portal of the Estonian Unemployment Insurance Fund (the Fund). The request for compensation may be submitted for the period from March to May 2020 – for two months from three. A separate request must be requested for each calendar month. The employee cannot apply.
      2. The Fund examines the petition and decides on the payment of compensation. The subsidy shall be paid if the company fulfills at least two of the three conditions:
          1. The company’s turnover or income has fallen by at least 30 per cent compared to turnover or revenue for the same month last year;
          2. The company does not have at least 30% of the employees a sufficient volume of work;
          3. The company has reduced salaries by at least 30% of the employees by at least 30% or the minimum wage.
      3. The compensation is transferred directly to the banking account of employee working under the employment contract. It is 70% of the average calendar month salary and the maximum amount is EUR 1000. The employee must also pay wages of at least EUR 150. The Fund and the company-employer shall pay all necessary taxes from the compensation and salary respectively.


Additional information.

The submission of applications opens in April on the internet portal of the Fund. However, the exact date and the data required for the application are to be announced additionally.

For more information you can ask by e-mail: tth@tootukassa.ee or by phone: 15501.