How to give the ‘first stamp’ to young people

By Dimitris Katsaganis

A further step for the implementation of two programs to support new employment was made yesterday, as the Minister of Labor, Mr. Kostis Hatzidakis submitted an amendment to the Parliament yesterday, which -among other things- provides, in particular, the introduction of the “first seal” program and increase of the beneficiaries of the contribution subsidy program by 100%.

There are two new key elements that the amendment brings (in relation to the initial announcements of Mr. Hatzidakis) in relation to the two key programs of support for new employment from 2022.

Firstly, the amendment explicitly provides for the possibility of combining the “first stamp” program with the 100% contribution scheme for each new recruit (regardless of age), which means that any company hiring a new one without previous service from 2022 will not only have a subsidy 600 euros to cover the salary expense, but also a subsidy of all contributions (employers and insured persons).

Secondly, the amendment foreshadows changes to the 100% contribution scheme for new recruits for “more specific categories of businesses and beneficiaries such as spatial delimitation, business activity or due to natural disasters”.

More specifically, it is stated that “more specific terms and conditions may be set for their inclusion in the program, as well as the amount of the subsidy, the duration of the employment contracts of the beneficiaries and any other necessary details”.

The two main programs

According to a relevant press release of the Ministry of Labor, the “First Badge” starts on January 1, 2022, ie the program for the first time to enter the labor market of young people aged 18-29 without previous service, in order to facilitate their first employment by private sector employer.

Under the program, the state budget subsidizes for six months each hiring of a young person without work experience with a full-time employment contract, in the amount of 1,200 euros shared between employee and employer (600 euros directly to the new hire, in six equal monthly installments, in addition to his salary and regardless of his amount and 600 euros is paid to the employer to cover part of the salary cost).

At the same time, the program of 100,000 subsidized jobs introduced by the Ministry as a measure to halt the side effects of the coronavirus pandemic in the labor market is being extended. From January 1, 2022 the projected positions increase by 50,000, to 150,000.

In detail, Hatzidaki’s amendment on the “first stamp” and the subsidy of contributions is as follows:

1. Open program of new jobs for the first recruitment of young people aged 18-29 – “First stamp”

An open program of the Ministry of Labor and Social Affairs is established for the first entry in the labor market of young people aged 18 to 29 years and the creation of new jobs, called “First Seal”.

The purpose of the program is to facilitate young people to enter the labor market and their smooth integration into it, with the aim of combating youth unemployment.

Beneficiaries of the program are young people, aged 18 to 29, who have no previous employment experience in private-sector or public-sector employers, including public-sector private-law legal entities not included in the General Government. .

Each new job of full-time, full-time, indefinite or permanent employment, created under this program, to private sector employers, regardless of the sector in which they operate, is subsidized by the state budget with 1,200 euros for a period of 6 months.

If the new recruitment concerns a part-time contract, the subsidy is reduced by half.

If the contract of employment is for a fixed period of less than 6 months, the new job is subsidized in proportion to the time of employment and the type of contract (full or part time).

The amount of the grant of 1,200 euros is paid as follows:

-Amount of 600 euros is paid directly to the newly hired young person, divided into 6 equal monthly installments, in addition to his monthly salary and regardless of this amount.

– An amount of 600 euros is paid directly to the employer of the newly hired young person, to cover part of the salary expense.

In case of a part-time employment contract, the subsidy is applied proportionally.

For the payment of the total monthly salary, the employer is obliged according to the existing provisions of the labor legislation. For the payment of all the monthly insurance contributions, the existing provisions of the social insurance legislation are applied, for each category of employees.

The company can simultaneously include the beneficiary in the open program of new subsidized jobs with the terms and conditions provided in it.

Beneficiaries who are placed in the new jobs here, can not join the “Co-Work” program. The employment contracts of the above can not be suspended, unless the business activity of the companies in which they are hired is suspended by order of a public authority.

The subsidized jobs are additional to the existing jobs.

In order to be included in this program, the private sector companies submit a relevant statement to the Information System “Ergani” of the Ministry of Labor and Social Affairs. on average the same number of employees for the subsidy period of the new job, increased by the number of new subsidized employment contracts, according to the program. it has been paid, it is sought through the process of unduly paid.

By joint decision of the Ministers of Finance and Labor and Social Affairs, more specific conditions for membership, the terms of combination with other programs, and any terms and details necessary for the implementation of this are provided.

By decision of the Minister of Labor and Social Affairs, the special application form-responsible declaration of integration of the company in the program of this article is defined, as well as the special application form-responsible declaration of acceptance of the newly hired newcomer in “Ergani” and each special issue and necessary details in relation to the above forms.

The program is valid from 1.1.1.2022 to 31.12.2022.

2. Expansion of the open program of 100,000 subsidized jobs

An open program of the Ministry of Labor and Social Affairs is established for the creation of 100,000 new jobs (with a 6-month subsidy of 100% of their contributions). From 1.1.2022 the new jobs of the first paragraph increase by 50,000.

A joint decision of the Ministers of Finance and Labor and Social Affairs shall determine the terms, conditions, the date on which the new jobs are in addition to the existing jobs, the amount of the grant, the further extension of the program and any other necessary details for the application of this.

By the same or a similar decision, for more specific categories of companies and beneficiaries such as based on spatial delimitation, business activity or due to natural disasters, more specific terms and conditions for their inclusion in the program, as well as the amount of the subsidy, the duration beneficiaries’ employment contracts and any other necessary details.