20 pct cut in unemployment insurance premium proposed

The Unemployment Insurance Fund board has approached the Cabinet with a proposal to lower the unemployment insurance premium from 3 percent to 2.4 percent.

Currently employees pay 2 percent and employers 1 percent. Under the new proposal, the split would be 1.6 percent and 0.8 percent.

The fund’s board, which is currently chaired by the head of the country’s unions, Peep Peterson, said Monday’s offer was a compromise.

“The new premium rate would allow us to cover the needs of the work ability reform and to continue amassing reserves at a reasonable rate,” said Peterson, as reported by uudised.err.ee. “The board reviewed the potential crisis scenarios before making the decisions and we can be sure that we can get by with the with the insurance resources we have even in complicated times.”

Read more from ERR News

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