All companies with turnover drop will be able to get state aid in Latvia

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The State will subsidize jobs and grant downtime benefits not only to businesses in a particular sector whose activities are most directly affected during the emergency but to all companies that have a drop in turnover, said Prime Minister Krišjānis Kariņš November 24.

As reported, there will be three aid funds available: employee benefits, subsidized jobs for companies that are partly continuing work, and  a subsidy for working capital for companies unable to work or work only partially .

Minister of Economics Jānis Vitenbergs said at a press conference following the government meeting that two support mechanisms for the companies affected by COVID-19 have been clarified, which will help a wider range of companies and also employees.

The Ministry of Economics (EM) explained that new conditions were approved:

  • aid for wage subsidies for partly employed workers,
  • the provision of downtime aid to entrepreneurs and their employees, as well as to self-employed and patent workers.

The Cabinet decided that the two types of aid mentioned above would be available to the companies affecte by the restrictive measures of COVID-19 in all sectors. The aid will be available for the period from 9 November 2020 to 31 December 2020.

Aid for wage subsidy for entrepreneurs will be available at 50% of the declared average monthly gross wages for the period from 1 August to 31 October 2020, but not more than EUR 500 per calendar month per employee. 

The government also established criteria and arrangements for the provision of aid to the following taxpayers:

  • for employers to compensate for the remuneration of their employees;
  • for self-employed persons (economic operators, beneficiaries of royalties) - to compensate for their income;
  • for patent workers, to compensate remuneration.

Overall, €67 million is earmarked for support mechanisms. Vitenbergs predicted that this amount of funding should be sufficient. 

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