Coronavirus: Labour ministry tweaks payouts after complaints they were too low

The ministry of labour said on Tuesday it is tweaking the calculation method for coronavirus-related special unemployment and sick leave benefits after recipients complained payouts were too low.

In a statement, the ministry said it has determined that the low sums paid out were due to the normal way of calculating pensionable earnings based on the Social Insurance Law.

As part of the coming tweaks, the ministry will take into account the pensionable earnings for the year 2018, but these will now be compared to the declared earnings for January 2020, and the special benefit to be paid out will correspond to 60 per cent of the highest of those two.

Additionally, a minimum amount will be fixed for special unemployment or sick leave allowance.

For those whose employment began in February or March 2020 a special plan will be devised, provided that their employment was declared by the employer.

People aged over 65 who do not get a statutory pension and who continue to work will be included in the support scheme.

Also certain professions which had been excluded from the scheme, running from April 13 to June 12, will now be included.

Moreover, people for whom regular unemployment benefit payouts from the Social Insurance Fund have been completed will become eligible for the special allowances.

For going concerns employing up to nine people, the ministry decided to subsidise all employees, irrespective whether they are general managers or director shareholders, as part of the scheme to support businesses forced to partially suspend operations due to the lockdown.

The ministry stated that the special benefits to employees will stay in force until June 12, and to businesses until October 12 “without being considered as a precedent for the payment of regular unemployment benefits after the expiry of this period.”

It also reminded all employers to file their employees’ pay slips for the months of February and March 2020.

The changes are to be submitted to the cabinet for approval this coming Thursday.

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