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

The Economics Ministry estimates that employers might claim the downtime benefits for 45,000 employees, which would require EUR 20.3 mln in the government budget. 

On November 10, the government already approved the Economics Ministry's proposals on support to businesses and employees, envisaging downtime benefits for employees of those companies whose turnover in August, September and October dropped by at least 20 percent from the respective period a year ago and that based on the NACE code represent sectors affected by the state of emergency.

Now, the Economics Ministry proposes providing the government support to businesses in all sectors of the economy. 

The support measure would target companies that are no longer able to employ all their workers, as well as self-employed persons and payers of patent fee.

The downtime benefits will be paid to employers and self-employed persons whose turnover during the support period has fallen by 30 percent from August, September and October 2020.

The measures stipulate that downtime benefits for idle employees will be paid to the employee in the amount of 70 percent of their average gross monthly salary, but not less than EUR 330 per month and no more than EUR 1,000 per month. 

The downtime benefits will be exempt from income and social tax. Once the benefit request is granted, the State Revenue Service will pay out the money within five days.