News Local FAQ from Labour Ministry on its special allowance scheme

FAQ from Labour Ministry on its special allowance scheme

The Labour Ministry has answered the public’s Frequently Asked Questions on its special support scheme to workers and businesses to alleviate the financial consequences of Coronavirus.

1. How was my allowance calculated? Which period / year was taken into consideration?

Special Unemployment Allowance: those who meet the insurance criteria for 2018 (i.e. contributions were paid to the Social Insurance fund for more than 13 weeks of employment in 2018). Then the insurance income is calculated for the whole of 2018, as stipulated in the Social Insurance legislation for such allowances.

To calculate the Special Unemployment Allowance, you divide the total income for 2018 by 52 (the number of weeks in 2018) and then divide that by 6 days (workdays in a week) and then multiply by the number of days for which a Special Unemployment Allowance was requested. The Special Unemployment Allowance is equal to 60% of the result of the above calculations, with a maximum limit set at €1,214 for a month.

Note: A maximum percentage of weekly income is adhered to as per the Social Insurance legislation.

Those who do not meet the insurance criteria for 2018 are entitled to 40% of their real income in January 2020 for which contributions were paid to the Social Insurance fund.

Special Sick Leave Allowance: For salaried employees and the self-employed, the Special Sick Leave Allowance is calculated in the same way as the Special Unemployment Allowance, without taking into account the first three days of the concerned period. Provisions of the Social Insurance law on how to calculate the sick leave allowance for salaried individuals are also adhered to.

Special Leave for Child Care: The Special Allowance for Child Care is calculated based on the applicant’s real earnings submitted with the Social Insurance Fund for January 2020. For the first €1.000 of the monthly salary, the beneficiary receives 60% and from €1.000 to €2.000 they receive 40%. The maximum allowance for one month cannot exceed €1.000 and the final amount paid is equal to the number of days the claim concerns.

For single parent families, the above percentages increase to 70% and 50% respectively and the maximum allowance for one month cannot exceed €1.200.

Special Allowance for Self-Employed Workers: The Special Allowance for Self Employed Workers is equal to 60% of actual income of the last quarter of 2019, with a minimum limit for four weeks at €300 and maximum limit at €900. Just as with the rest of the special allowances, the payment only concerns the days for which the claim concerns.

2. How many days are covered in the allowance I received?

The allowance concers the period from March 16, 2020 until April 12, 2020. Special allowances are not paid in instalments.

3. I did not receive an SMS for error in the details I submitted, nor an allowance. Is there something else I need to do?

Payments of special allowances are ongoing. If you have not been requested to amend any of the details in your application, you don’t need to do anything further. If you need to submit additional data, you will be informed by SMS.

4. Do I need to submit a new application for the special allowance I received until April 12, 2020?

The decision for expanding the special schemes includes their amendments. Relevant announcements on how the schemes will be extended and obligations of beneficiaries will be announced soon.

5. When will I get the allowance for the next period?

The next payment of special allowances is estimated to take place in mid-May. Relevant announcements will be issued in due course.

6. I was receiving an unemployment benefit and now I have no income, nor am I able to find work. Is there an allowance for me?

The Labour Ministry is looking into ways to support the unemployed too. Relevant announcements will be issued soon.

Read more:

Another 85,000 receive special allowance, ministry says

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