Background information

In order to provide more effective and comprehensive support to the beauty industry, which has been completely suspended due to the established COVID-19 restrictions, the Cabinet of Ministers decided to supplement the idle time benefit legislation with specific clauses to support employed in this sector.

On 19 January 2021, the Government adopted the relevant amendments to regulations No. 709 “On support for taxpayers for downtime to continue their activities during the COVID-19 crisis”.

Content of measure

Support is available to people who provide the following beauty services: hairdressing, manicure, pedicure, massage, cosmetology, solarium, tattooing, scarification, micropigmentation, piercing, public sauna or public swimming pool. The support is available for the period when the Government imposed restrictions is in place.

The person is eligible for the idle time benefit if:

• he/she is an employee who was employed in October, or November, or December 2020 by an employer (legal persons or self-employed person) who provided beauty care services during that period;
• he/she is a self-employed person who provided beauty services in October or November or December 2020
• he/she is a patent payer who provided beauty services in August or September, or in October, or in November, or December.

The person has to be registered with the Health inspection. Support is also available for support staff who were employed by a legal entity or a self-employed person during the above-mentioned period.

The amount of the benefit is calculated as follows:

• For an employee - 70% of the declared average monthly gross salary for the period from 1 August to 31 October 2020. Benefit is not be less than €500 and more than €1,000 for a full month.
• For an employee of a micro-enterprise (specific tax regime) - in the amount of 50% of the average monthly gross salary for the 3rd quarter of 2020 according to the quarterly declaration, but not less than €500 and more than €1,000 for a full month.
• For a self-employed person who has registered for the general tax payment regime (economic operator) - in the amount of 70% of the average income from economic activity in the 3rd quarter of 2020, not be less than €500 and more than €1,000 for a full month.
• For a self-employed person who is a taxpayer of micro-enterprises tax (specific tax regime) - in the amount of 50% of the average monthly income from economic activity for the 3rd quarter of 2020, not be less than €500 and more than €1,000 for a full month.
• For a patent fee payer, if in August, or September, or October, or November, or December 2020, there was a valid patent - €500 per month.

If a person operates in different forms of employment (e.g. employee, self-employed, several employers) it is also possible to receive benefit in each form, however, the total amount may not exceed €1,000 for a full month.

Use of measure

From 23 January 2021 to 18 July 2021, 1,787 employees in the beauty care industry have received €2.3 million, 5,322 self employed persons - €6.4 million and 1,114 patent fee payers €1.4 million. Total amount of the benefit paid to 8,082 people - €10.1 million.

Target groups

Workers	Businesses	Citizens
Applies to all workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

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

	Trade unions	Employers' organisations
Role	Informed	Agreed (outcome) incl. social partner initiative
Form	Not applicable	Direct consultation outside a formal body

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

• Only employers' organisations
• Main level of involvement: Sectoral or branch level

Involvement

On Wednesday, 13 January 2021, Minister of Finance Jānis Reirs met with the beauty industry business organisations (Association of Beauty Professionals and Association of Beauticians and Cosmetologists of Latvia) to discuss the current situation and seek support solutions for those working in the industry in connection with the established COVID-19 restrictions.

Views and reactions

Beauty care business organisations found it positive, that cooperation has started. Sabīne Ulberte, Head of the Association of Beauty Professionals says: "I would like to congratulate Minister Jānis Reirs on the initiative to meet with the industry and appreciate that representatives of the State Revenue Service were also invited to this meeting, which allowed us to see potential stumbling blocks and try to find a solution by introducing any new support model for the industry.”

She also stresses the importance to reopen the industry, because “It must be understood that no support mechanism can replace people's professional activities and, consequently, their normal income and quality of life.”

Renāte Reinsone, President of the Association of Beauticians and Cosmetologists of Latvia also expresses concern of the industry as a whole: “The companies in the sector have been going through the crisis since the beginning of the pandemic in March this year - the companies were either stopped altogether or were working under strict restrictions. Long-term support is needed so that the beauty industry can return to work and remain competitive even after the restrictions are lifted.”

Sectors and occupations

Sources

• 13 January 2021: Minister of Finance Jānis Reirs in cooperation with representatives of the beauty industry is looking for support solutions for those working in the industry (lvportals.lv)
• 14 April 2021: Information from State Revenue service on use of support (www.vid.gov.lv)
• 26 April 2021: State Revenue Service web page on support to beauty care industry (www.vid.gov.lv)
• 26 April 2021: Regulations No. 709 “On support for taxpayers for downtime to continue their activities during the COVID-19 crisis (likumi.lv)
• 27 July 2021: Statistics on support from the State Revenue Service (www.vid.gov.lv)