What changes in the ‘first stamp’ program

By Dimitris Katsaganis

Significant improvements in the subsidy program for 6-month recruitment of unemployed young people without previous service are foreseen by an amendment brought to the Parliament last Friday by the Minister of Labor, Mr. Kostis Hatzidakis https://www.capital.gr/oikonomia/3640187/-proto-ensimo-auxanetai-st 3-600-euro-i-epidotis-6minis-proslipsis.

These are summarized in the tripling of the amount of the six-month subsidy to both the employer and the unemployed person who will be hired. Specifically, the employer will receive the amount of 1,800 euros (instead of 600 euros) to cover the salary costs of his new employee, while the hired person will receive the amount of 1,800 euros, in addition to his salary. So, for example, if an employer agrees with a young unemployed person without previous service a salary equal to the minimum wage (613 euros net), through the state subsidy of 1,800 euros for 6 months, the employer will cover almost 3 of the 6 salaries of the employee ie 1/2 of the salary cost. Under the previous scheme of the same program, the € 600 subsidy to the employer barely covered the cost of a single net salary.

In fact, if it is included at the same time – as explicitly provided by law – in the open contribution subsidy program, then it will cover 100% of the insurance costs. Thus, his only expense will be essentially 3 net salaries which he will pay to his employee. For his part, the employee, in addition to his salary – at 613 euros, according to the same example – will receive from the state as a “bonus”, without this being equivalent to providing additional working hours, the amount of 300 euros / instead of EUR 100 / month, as provided for in the previous scheme of the same scheme, ie in the same example, the employee will receive EUR 913 (EUR 613 from his employer and EUR 300 from the State). , through the state subsidy, his earnings will be increased by 48% compared to those without the state subsidy.

Sources of Capital.gr from the Ministry of Labor, state that these changes will not have retroactive effect from January 1, 2022, when the “first stamp” was implemented. This means, as analysts explain to Capital.gr, that the triple subsidy will be given only to those who join the program from the date of validity of the provision submitted yesterday (after being voted) and then, and not those who joined between January 1, 2022 and on the eve of the expiry of the existing provision.

The new regime

Analytically, the new regime in the “first stamp”, as it results from the new regulation Hatzidaki will be as follows:

– An open program of the Ministry of Labor and Social Affairs is established for the first entry into 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 with private-sector or public-sector employers, including private-sector private-law legal entities not listed in the General Government.

Each new job of full-time, full-time, indefinite or permanent employment, created under this program, to employers of the private sector, regardless of the sector in which they operate, is subsidized by the State Budget with 3,600 euros for a period of six months.

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

If the contract of employment is for a fixed period 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).

The amount of the grant of 3,600 euros is paid as follows:

* An amount of 1,800 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

and

* An amount of 1,800 euros is paid directly to the employer to cover part of the total salary cost.

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

The 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 by certified tax administration and the State in general, municipalities, regions, insurance funds or credit institutions.

– 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.

The beneficiaries who are placed in the new jobs of the present, can not join the program “CO-WORK”. 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 hereby are additional to the existing jobs.

– For their inclusion in this program, private sector companies submit a relevant statement to the Information System “ERGANI” (PS “ERGANI”) of the Ministry of Labor and Social Affairs. A company that recruits or recruits one or more times must responsibly state that it will retain on average the same number of employees for the subsidy period of the new job, increased by the number of new subsidized employment contracts. If it is found that the company does not meet the above condition, does not receive the subsidy and amounts paid are sought through the procedure of unduly paid. Similarly, both the company and the employee declare responsibly that the employee has no first or second degree blood or relationship with the employer and if it is found that this condition is not met, neither party receives the subsidy. and amounts paid are recovered through the unduly paid procedure.

– The program is valid until the exhaustion of the budget, at the time of entry into force of this article, amount and, however, not beyond 31.12.2022.