TALLINN — The Ministry of Finance submitted a draft measure designed to simplify hiring the long-term unemployed and help the jobless re-enter the job market to the Estonia’s parliament Thursday .
If passed, the new Social Tax Amendment would apply to those who have been unemployed for at least nine months — that’s when Estonian Unemployment Insurance Fund makes the last support payment.
The new regulation enables the employer to pay the social tax from an employee’s actual paid wage. Under current regulation the social tax must be paid from te minimum wage rate for a full-time job, which is 4,350 krooni (€278) per month, for all employees equally, instead of allowing less tax to be paid for part-time employees.
“The purpose of this support, just like for any other support, is addressing the aid to those in need. The measures will create a better environment for hiring jobless are better from any financial support,” Minister of Finance Jürgen Ligi told the press.
The Ministry of Social Affairs created a wage support system last year, in which half of the welfare payments for paid those out of work over three months is covered by European Union job market funds.