Decision

Supplementary amending budget: Enhanced support for companies and reduced employer contributions for young people (FiU42)

Parliament approved the government’s proposal for an additional supplementary amending budget for 2021 due to the continued spread of the COVID-19 disease. The proposal includes, among other things, these measures:

• Companies will be able to receive continued and enhanced financial support for short-time work from December 2020 through June 2021. The support is enhanced during January, February, and March by having the state cover 75 percent of the costs for reduced working hours and allowing companies to reduce working time by up to 80 percent for their employees.
• Extended transition support for companies for the period January-February 2021.
• New shutdown support. This is enhanced transition support for companies that must close their operations if the government decides to shut down certain activities based on the temporary pandemic law, the COVID-19 Act.
• Employer contributions for persons between 19 and 23 years of age are reduced during the period January 2021 to March 2023. The reduction was planned to take effect from April 2021 but is being moved forward because many of the industries where young people work have been severely affected during the pandemic.

Parliament’s Decision: The chamber approved the committee’s proposal.

Source: Parliament