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Downtime pay for 73,000 workers will cost EUR 102 million from the national budget
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    Downtime pay for 73,000 workers will cost EUR 102 million from the national budget

    RIGA, March 25 (LETA) - The government's decision yesterday on the disbursement of downtime benefits for about 73,000 employees working in sectors most impacted by the Covid-19 pandemic will cost EUR 102 million from the national budget, according to information from the Economy Ministry.

    As reported, initially downtime pay during the period of the Covid-19 crisis will be provided to around 73,000 employees in transport and logistics, hospitality, tourism and creative industries, according to regulations worked out by the Economics Ministry and adopted by the government. While they are forced into idling by the crisis, employees in these industries will be eligible to receive 75 percent of their salaries but no more than EUR 700 per month. 

    The fiscal impact of this decision on the state budget is estimated at EUR 50.89 million per month, so assuming that the downtime benefits will be paid out until May 14 this year, the total budget expenditure for providing these benefits is EUR 101.79 million.

    Politicians said that the list of the affected sectors might be expanded.

    As reported, up to 150,000 workers could be eligible for downtime pay during the period of the Covid-19 crisis, Finance Minister Janis Reirs (New Unity) told Delfi TV last week.

    To apply for the downtime pay for March 14-31, Covid-19-affected enterprises have to file their applications with the State Revenue Service by April 25. After that, they will have until the 25th day of the following month to apply for an extension.

    • Published: 25.03.2020 14:04
    • Raivis Spalvens, LETA
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