The government approved increasing unemployment insurance fee 4.2 pct from August 1 to December 31 so that the Unemployment Fund could cover their higher expenditures due to the economic downturn and new layoff rules, aripaev.ee reports.
Therefore employees have to pay 2.8 pct of their salary and employer adds 1.4 pct. According to the forecast the unemployment benefits will amount to EEK 1,867 bln, which is shared between 57,475 people.
The Unemployment Fund’s expenditures will be more than EEK 3 bln this year, according to the Ministry of Finance’s spring forecast. If employee would pay 2 pct and employer 1, then the fund would collect EEK 1.5 bln as payments. That would mean that the Unemployment Fund would have to take EEK 1.5 bln from their reserves.
Source: BBN
Filed under: Finance & Taxes
