By Dimitris Katsaganis
Two main programs of the Ministry of Labor for the enhancement of employment through subsidies of contributions, as well as salaries, are coming to an end.
The reason for the open subsidy program of 100% of the contributions for 6-month recruitment of the unemployed and the “Co-Work” mechanism.
Secure information of Capital.gr from executives of co-competent ministries states that the basic scenario envisages the non-extension of the contribution subsidy program, after the exhaustion of the available positions.
The same sources state that the vast majority of these positions (a total of 150,000) have been filled and, for the time being, no new expansion is planned. It is recalled that this program, which entered into force in October 2020, concerned the subsidization of 100,000 jobs.
As it was in high demand, the government decided to expand it by an additional 50,000 posts from January 2022.
However, according to information from Capital.gr, these were also covered, but no new expansion is planned.
Regarding the “Co-operation” mechanism which provided for a subsidy of the salary (by 60%) that is cut (up to 50%) and the subsidy of employee contributions to companies that had a 20% reduction in turnover during the most difficult period of the pandemic (April 2020-March 2021), its last extension expires on May 31, ie 5 days from today.
However, according to reliable sources of Capital.gr from co-responsible ministries, no new extension is foreseen for the time being.
Thus, this mechanism, which covered an average of 30,000 business employees every month from June 2020 until this May, ie for 2 years, is not expected to continue.
The only program (s.s. of the Ministry of Labor) which will continue normally in the coming months is the “first stamp”, which provides for the subsidy with 1200 euros (600 euros for the employer and 600 euros for the employee) for any new hiring without previous service. Information from Capital.gr states that until now, almost 6 months after its entry into force, it has a very low “demand”. However, the Ministry of Labor has already announced improvements in the direction of higher wage subsidies (even at the level of the minimum).