📋 Tender Overview
The governments goal is to simplify the provisions on wage subsidies and thus increase the use of wage subsidies especially in companies. The aim of increasing the use of wage subsidies is to promote the employment of the weak in the labor market and thereby increase the employment rate. The aim of the reform is to reduce the bureaucracy associated with wage subsidies by simplifying the wage subsidy system so that it is more predictable and the process of granting and paying wage subsidies is faster and attracts employers especially companies to hire more unemployed jobseekers.Aid for the employment of people over the age of 55 is proposed as new. The long-term employment impact of the reform is estimated at around 500-1000 people. Restrictions are presented on the target group of wage supportThe wage subsidy system would be simplified by limiting wage subsidies to promote the employment of unemployed jobseekers who are disabled or disadvantaged within the meaning of EU state aid rules the Block Exemption Regulation. Wage subsidies could be granted in the future 15-24 year olds Those aged 50 and over dependent on primary education immigrants and those who have been unemployed for at least six months and promoting the employment of the disabled. For apprenticeships wage subsidies could also be granted for the wage costs of other unemployed jobseekers.Changes to the conditions for granting are proposedWage subsidies would continue to be based mainly on skills shortages. The employment of a person who has been unemployed for less than a year would continue to require that unemployment is expected to continue without wage subsidies.On the basis of an injury or illness the benefit would be granted for the first time on the grounds that the jobseekers permanent injury or illness would significantly impede a persons employment in the open labor market. The assessment would not be made in relation to the job as it is today. Continuation of support in the same employment relationship would however be assessed in relation to the job.The readmission obligation for the employer would be clarified so that the employer is not required to employ the same persons but the same number of employees. Wage subsidies would no longer be granted to households.The amount of wage subsidy is presented to be more consistentThe wage subsidy system would also be simplified by harmonizing the amount of wage subsidies. The amount of wage subsidy granted on the basis of skills shortages would be 50 of wage costs regardless of the duration of unemployment currently 30 40 or 50. Wage subsidies based on injury or illness would be raised from 50 to 70.The gross wage paid to the employee would be considered to be the wage cost covered by the wage subsidy. In the future the side costs of the salary or holiday pay to be paid by the employer could not be covered by the salary subsidy. In addition other changes would be made to the eligible costs in order to make more efficient use of the national income register for the payment of wage subsidies.Duration of salary supportWage subsidies for those who have been unemployed for less than a year would be granted for five months and for ten months in the 14 months preceding at least 12 months. Unlike at present the aid would always be granted for the periods mentioned above unless the employment relationship is shorter. Similarly a person employed in apprenticeship training on the basis of a long-term unemployed person over the age of 60 or an injury or illness would be able to receive other longer-term support than wage support.Unlike the current one the new wage subsidy could be granted to another employer immediately after the previous maximum wage subsidy period if the conditions for granting the wage subsidy are met.Changes in benefits granted to business activities eg 100 wage subsidyAt present a non-business economic advantage is considered to be outside the scope of EU state aid rules. There have been ambiguities in the interpretation of the concept of business activity. The concept of business activity used in the Public Employment and Business Services Act would be replaced by the concept of economic activity in order to harmonize regulation with EU state aid rules. Economic activity refers to the sale of goods and services. It would be possible in future to grant an employment policy subsidy and a 100 wage subsidy non - economic operators and economic operators whose economic activity would not affect trade between EU Member States.In the above situations the aid would not be subject to EU state aid rules. In addition 100 wage subsidies could be granted as de minimis aid to other operators in the target group of the aid in question which are associations foundations and registered religious communities. The change would expand the range of employers eligible for 100 wage subsidy but would significantly limit the use of 100 wage subsidy for employers with large economic activities.Aid for the employment of persons over 55 years of ageThe draft proposal proposes the introduction of a new employment aid for people over the age of 55. The aid would be granted without a feasibility study if the conditions laid down by law are met. Among other things the employment relationship should be concluded in such a way that the regular working time guaranteed by the employment contract is at least 25 hours per week or at least 65 of the maximum working time in the sector. The subsidy would be paid at 70 of the eligible salary costs for 10 months but not more than for the duration of the employment. The same wage costs as for wage-subsidized work would be considered as eligible costs.
