As we have previously reported in the newsletter, the Government has pursued various measures to reduce the negative effects of the COVID-19 pandemic on the labour market, including the implementation of qualifying-period compensation for employees and reduced employer’s social insurance contributions for persons aged 19-23.
The Government has now resolved to extend several of these measures. Both qualifying-period compensation for employees and compensation paid to employers for sick-pay costs which, as a consequence of COVID-19, exceed normal costs were extended up to and including 30 September 2021.
As regards the reduction in employer’s social insurance contributions for persons aged 19-23, they are currently reduced to 19.73 per cent. However, according to Government Bill 2020/21:202, Extra Amending Budget for 2021 – Additional reduction of employer’s social insurance contributions for 19-23-year-olds from June-August 2021, it is proposed that an additional reduction to 10.21 per cent apply in June, July and August for persons who, at the beginning of the year, had reached the age of 18 but were not yet 23. It has been proposed that the additional reduction enter into force on 19 June 2021, but it has not yet been adopted.