‘First stamp’: The 6-month hiring subsidy is increased to 3,600 euros

Changes in the terms of the “First Seal” program – introduced by Law 4855/2021 (Article 196) and “running” from the beginning of the year – come with an amendment of the Ministry of Labor and Social Affairs, submitted to the bill of the Ministry of Finance for the reform of the institutional framework of the Financial Stability Fund. The aim of the changes is to make the program more attractive and to function more effectively as a tool to increase the employment of young people, aged 18-29, without previous service.

The proposed amendments lead to the strengthening of the existing program. The most important improvement that comes is the large increase in the amount of the subsidy granted both to the employers of the private sector for each new dependent job created according to the “First Seal” and subsidized by the budget, as well as to the employees.

More specifically, in relation to the current framework which provides for a total subsidy for each job amounting to 1,200 euros for six months (and which is divided equally between employee and employer) with the introduced regulation, the total amount of the subsidy is increased to the amount of 3,600 euros for each new job included in the program, for the same period (6 months).

The grant of 3,600 euros is distributed as follows: An amount of 1,800 euros is paid directly to the newly hired young person, divided into six equal monthly installments, in addition to his monthly salary and regardless of its amount. The remaining 1,800 euros are paid directly to the employer of the newly hired young person to cover part of the salary expense. Enhanced grants create stronger incentives to join the program.

If the new hire concerns a part-time contract, the subsidy is reduced by half, while if the contract is for a fixed term of less than six months, the new job is subsidized in proportion to the time of employment and the type of contract (full-time or part-time).

It is reminded that the “First Seal” is accompanied by a job retention clause and is valid until the end of the year.

Other provisions

In addition, with arrangements proposed by the same amendment, including:

• The possibility and obligation of the services of eE.F.K.A. is generalized. take into account any available public document, to prove any information necessary for the issuance of the deed of award of the pension and the calculation of its amount, such as the personal situation of the applicant, his time of insurance, the insurable status and its time and the payment or debt of insurance contributions. The aim is to further accelerate the process of awarding pensions

• The exemption for the insured of the former OGA is eliminated in the regulation that was introduced – in the bill “Jobs Again”, thanks to which the insured who are close to the limits for the establishment of a pension right can recognize more insurance time: Now OGA policyholders who have reached the age of 67 and need up to 150 days of insurance to establish the right to full retirement – provided that they have not recognized more than 5 fictitious years of insurance – recognize up to 150 days of insurance by paying the corresponding contributions on the basis of the current, at the time of recognition, unskilled worker wage.

• The new voucher program is introduced for the participation of infants, children and infants in pre-school education and care programs, as well as children and adolescents in creative employment programs. Target groups are infants, toddlers and children aged 2 months to the age of enrollment in compulsory pre-school education, and primarily the most vulnerable children. This ensures that children can enjoy affordable and quality early preschool education and care as well as that they can engage in quality extracurricular creative activities. Following the provision of the “Kypseli” educational program, the Ministry of Labor and Social Affairs secured the necessary resources from the new NSRF to finance the participation of children in the programs of kindergartens and nurseries, as well as KDAP and KDAP for the disabled and adopts for the first time relevant regulation with a child-centered character, with absolute respect for children and their families.

• It is possible to settle the debts of the bodies that are part of the National Social Care System in 48 installments and to offset them with the grants that these bodies receive, up to a percentage of 30% on these grants. The inclusion in this regulation allows the bodies to receive insurance information, while the administrative execution procedures against them are suspended.