What changes in the ‘first stamp’ and in the contribution subsidy

By Dimitris Katsaganis

Amendments to two programs of the Ministry of Labor aimed at recruiting the unemployed are provided by the bill for the reform of OAED which was submitted today in Parliament. The interventions concern the subsidy program of 100% of the contributions and the “first stamp” that concerns the recruitment of unemployed young people without previous service.

In more detail, the changes per program are as follows:

Contribution subsidy

Specifically, in relation to the subsidy program of 100% of the contributions, the new provision provides in case the new recruitment concerns a long-term unemployed person, registered in the Ministry of Education (as OAED is renamed), the new recruitment is subsidized not only, as for his contributions (at 100%), but also with 200 euros on the net monthly salary.

The subsidy of 200 euros on the net monthly salary is inalienable and unsecured in the hands of the State or third parties, by way of derogation of any general and special provision, is not bound and offset by certified debts to the tax administration and the State in general, the municipalities, regions, insurance funds or credit institutions.

Seasonal employees of the tourism and food sector without the right of compulsory re-employment, who are subsidized and will be hired after the entry into force of the present by employers-companies of the tourism and food sector, can join the open program of new subsidized jobs, with contract private law, lasting at least 1 month and up to 6 months, full-time or part-time.

The reference period for the measurement of jobs that are created and are additional in relation to the existing jobs starts from the date of each hiring of the employees of this paragraph.

The new recruitment is subsidized in proportion to the time of employment, covering the total of the employee and employer insurance contributions and the corresponding insurance contributions in gifts and leave allowance and, in addition, with 200 euros on the net monthly salary.

In case the new recruitment concerns a long-term unemployed person, registered in the Public Employment Service (D.Y.P.A.), the provision for 200 euros does not apply.

Especially for the cases of recruitment of the employees of the first paragraph from 1.6.2021 and until the entry into force of the present, they can apply until 30.6.2021 the inclusion of the said employees in this program with the same terms and conditions.

The subsidy of 200 euros on the net monthly salary is inalienable and unsecured in the hands of the State or third parties, by way of derogation of any general and special provision, is not bound and offset by certified debts to the tax administration and the State in general, the municipalities, regions, insurance funds or credit institutions.

“First stamp”

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

a) – An 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 its 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.

b) In case of a part-time employment contract, the relevant provision is applied proportionally for the payment of the subsidy.

c) The above subsidy is tax-free, inalienable and unsecured in the hands of the State or third parties, by way of derogation from any general and special provision, is not subject to any withholding, fee or contribution, including the special solidarity contribution, is not bound and is not offset with certainty. debts to the tax administration and the State in general, municipalities, regions, insurance funds or credit institutions.

The validity of this new provision “runs” from the entry into force of the original relevant provisions, ie from November 12, 2021.