The 5 changes in the contribution subsidy

By Dimitris Katsaganis

Five-level changes in the Labor Ministry’s program, which provides for a 100% contribution subsidy for each new hiring, provide for an amendment tabled by the government last week.

Specifically, the changes concern the number of unemployed beneficiaries in 2022 the possibility of combining the contribution subsidy with the wage subsidy, the employment retention clause, the beneficiary companies and the duration of the program.

More detail:

1. The first level concerns the number of beneficiaries unemployed. This increases from 100,000 to 150,000, ie by 50,000 from January 1, 2022.

2. The second level of change concerns the possibility of combining this program (contribution subsidy) with the “first stamp” program (grant of 1,200 euros per beneficiary) This possibility is explicitly mentioned. months, could hire a young 18-29 year old without previous service receiving the same salary subsidy of 600 euros, the employee will receive a “bonus” of 600 euros and at the same time the state will cover 100% of his contributions.

3. The third level of change has to do with the clauses that a company must adhere to in order to be included in the contribution subsidy scheme.

The amendment states that an upcoming inter-ministerial decision, among other things, will set “the date on which new jobs are in addition to existing jobs”.

It is recalled that from June 2021, for the (first) 100,000 jobs with subsidized contributions, the following clause is provided: The subsidized jobs must be in addition to the existing jobs as of March 31, 2021 and also for the calculation of the number of employees to be maintained on average by the company during the subsidy period of new jobs (retention criterion) 2020.

This means, as explained by competent executives with whom he came in contact with Capital.gr, that the employment retention milestone for the additional 50,000 subsidized jobs from 1 January 2022 will most likely be moved by at least 3 months, ie it will be set at the earliest on 30 June 2021.

4. The fourth level of change will concern companies that could be included in the grant scheme depending on the area in which they operate, the industry or whether they have been affected by natural disasters.

As stated in the amendment “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 may be set for their inclusion in the program, as well as the amount of subsidy, duration of contracts work of the beneficiaries ”.

Based on what is mentioned in the amendment, according to the same sources, three new criteria are set which could lead to “experts”, ie more favorable conditions for the integration of companies. its field of activity and the third if it has been affected by an emergency natural disaster, whether a company fulfills one of the above or possibly all three at the same time (this will be clarified by a future ministerial decision) could lead to a “special” regime regarding the amount of the subsidy and the duration of the beneficiaries’ contracts. In other words, as the same sources point out, these companies could be given the opportunity to subsidize contributions for more than 6 months, which is equivalent to a higher subsidy.

5. The fifth level of change concerns the number of beneficiaries, obviously after the filling of the additional 50,000 positions.

The amendment leaves a “window” for an increase in the beneficiaries of the grant as there is talk of a “further extension” of the program, which is left to be determined by a future ministerial decision.

This means, as noted in Capital.gr Executives with experience in the formulation of employment programs, that the subsidy of contributions – in case of filling the subsidized positions (ie if they reach 150,000) – could “open” for more than 150,000 jobs.