Covid-19, Financial Services, Latvia, Markets and Companies

International Internet Magazine. Baltic States news & analytics Tuesday, 26.05.2020, 09:16

Covid-19: Downtime benefits paid to 11,047 employees of 2,018 companies

BC, Riga , 09.04.2020.Print version
The State Revenue Service (VID) has paid a total of EUR 2,902,594 in downtime benefits to 11,047 employees from 2,018 companies and 177 self-employed persons by Wednesday afternoon, LETA learned from VID.

VID still continues to review new applications.

As reported, the State Revenue Service (VID) on March 27 started paying out downtime benefits to the employees of companies that have been negatively affected by Covid-19 crisis. In total, EUR 102 mln have been allocated to VID to start the payout of the benefits.

Employees will receive 75% of their salaries but no more than EUR 700 per month in downtime pay. There will be no income tax and no social contributions levied on the downtime benefit.

Under one of the new provisions, downtime pay will be granted to businesses whose monthly turnover in March or April 2020 has contracted by at least 30% on year.

The government has so far earmarked nearly EUR bn worth of support funding in an effort to mitigate the impact of the Covid-19 crisis. 

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