Covid-19 Ministry of Economics
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In order to simplify and speed up the provision of aid to companies affected by the Covid-19 restrictive measures, new conditions were approved at the Cabinet of Ministers meeting on 24 November:

  • for the allowance of employee salary subsidies for part-time workers
  • and provision of downtime allowance for entrepreneurs, their employees, the self-employed, and patent payers.

The Cabinet of Ministers has decided that the above-mentioned types of aid will be available to taxpayers affected by the Covid-19 restrictive measures in all sectors. The support will be available for the period from 9 November 2020 to 31 December 2020.

Minister of Economics Jānis Vitenbergs states: “We have developed new support rules to make support available not only to employees of companies directly affected and closed due to the emergency situation, but also to all those affected by national restrictions related to the spread of the Covid-19 virus. The reinstating of the situation of emergency imposes various types of restrictions for the protection of public health which adversely affect business, including the partial or full employment of employees to the extent that existed before the emergency situation”.

By approving the amendments to Cabinet of Ministers Regulation No. 675 of 10 November 2020, “Regulations on Providing Aid to Taxpayers for Continuation of Their Operations in the Situation of Crisis Caused by Covid-19”, the Government significantly expands the range of beneficiaries and excludes provisions on downtime allowance.

Consequently, Cabinet of Ministers Regulation No. 675 prescribes the criteria and the procedure for granting support for compensation of the salaries of part-time employees (support for salary subsidies). Employers of any sector whose turnover has decreased by 20% compared to the average turnover in August, September, and October of this year will be eligible to apply for the aid. It is planned that the submission of documents for receiving state aid to the SRS EDS will start in December.

Allowance for employee salary subsidies will be available in the amount of 50% of the declared average monthly gross salary for the period from 1 August to 31 October 2020, but not more than EUR 500 per calendar month per employee. At the same time, the employer is obliged to pay the employee the difference between the amount of allowance received and the amount of salary, thus ensuring that the employee will receive 100% compensation. The allowance will be paid to employees.

The Government also approved the new Cabinet of Ministers regulation “Regulations on Provision of Downtime Allowance to Taxpayers for Continuation of Their Operations in the Situation of Crisis Caused by Covid-19”, which determines criteria and procedures for the provision of downtime allowance to the following taxpayers:

  • For employers - to compensate the remuneration of their employees;
  • For self-employed persons (performers of economic activities, recipients of royalties) - for compensation of their income;
  • For patent payers - to compensate the remuneration.

Employers, self-employed persons, and patent payers whose income from economic activity for the specific support month of 2020 has decreased by not less than 50 percent in comparison to the average income in August, September, and October 2020, in which the company actually operated, are eligible to apply for this aid.

Support for downtime in all forms of employment will be not less than EUR 330 and not more than EUR 1000 per calendar month. The employee, the self-employed person, and the patent payer will be granted an extra payment of EUR 50 for each dependent child under the age of 24, for whom the employee is subject to personal income tax relief.

It is planned that the submission of documents for receiving state aid to the SRS EDS will start in December.

 

 

Ministry of Economics
Public Relations Department
prese@em.gov.lv