Background information

Berry growers have been dependent on foreign workforce during summer for years, as there has been a lack of local workforce willing to participate in agricultural activities during the peak harvesting period. As the borders were closed, the foreign workforce could not arrive to Estonia this year, which meant a loss of a great share of harvest. To motivate the local workforce to accept the available jobs and help the agriculture companies, a wage subsidy in agriculture was established.

Content of measure

The aim of the wage subsidy is to promote the employment of long-term unemployed people in the berry growing field. It is paid to employers who hires (or has hired as of 1 June 2020) a person who is:

• registered as unemployed and
• who has not been in employment three months prior or has been temporarily been employed up to 30 days during the three months period.

The subsidy is paid in the amount of 50% of the employee’s gross wage but not more than €584 (the national minimum wage). It is paid as of the start of the employment relationship until 31 December 2020, but not more than three months per employee. The employment contract can be concluded for a specific term or for an unspecified term.

The measure is implemented by the Estonian Unemployment Insurance Fund.

Use of measure

It was expected that up to 750 unemployed people would be hired and the total cost would be around €600,000. There is no information available about the actual uptake.

Target groups

Workers	Businesses	Citizens
Unemployed	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government Public employment service	European Funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

The social partners are members of the Estonian Unemployment Insurance Fund (EUIF) council and are thus involved in the measures where the EUIF has a role to play.

Views and reactions

No information.

Sectors and occupations

Sources

• 11 June 2020: Agriculture wage subsidy (põllumajanduse palgatoetus) (www.tootukassa.ee)
• 11 June 2020: State will open wage subsidy support measure (Riik avab palgatoetuse meetme marjakasvatajatele) (www.sm.ee)