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Job creation subsidy


Lisatud 20.12.2016 | Uuendatud 23.03.2017

A job creation subsidy is support paid to an employer. Its purpose is to encourage the creation of new jobs in Ida-Viru County. The subsidy is paid to the employer to partially compensate the cost of employees' salaries.

The subsidy may be applied for by a legal person in private law:

  • whose jobs are located in Ida-Viru County;
  • who hires at least 20 unemployed people in two consecutive calendar months (the subsidy is paid for each additionally hired person).

With the job creation subsidy you can hire unemployed people registered in Ida-Viru County who in the past six months:

  • have not been involved in the activities referred to in Labour Market Services and Benefits Act § 6 section 5 clauses 3 to 5 or
  • have been involved for less than 30 days in total in the activities listed in LMSBA § 6 section 5, clauses 3 to 5, for example work (LMSBA § 6 section 5 clause 3).

The condition for creating a job in Ida-Viru County is also fulfilled when the job is created within a local government unit that formed part of Ida-Viru County before the changes in administrative-territorial organisation.

A person cannot be hired with the subsidy if they are studying full-time or acquiring vocational education in full-time studies, including persons on academic leave.

The subsidy is not paid for a person with whom the employer terminated the employment contract in the last 12 months under § 89 of the Employment Contracts Act.

The subsidy is not paid for a person for whose employment is supported with a wage subsidy under § 9 section 1 clause 8 of the LMSBA or under legislation issued on the basis of the Structural Assistance Act for the period 2014-2020.

You can apply for a subsidy if the employment contract is entered into for at least 6 months. The subsidy is paid for half of the period of employment contract but for no longer than 12 months. The amount of the subsidy is 50% of the gross salary, up to a maximum of twice the minimum wage (Employment Contracts Act § 29 section 5).

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How to apply for a job creation subsidy

In order to obtain the job creation subsidy, a written application which includes at least 20 people must first be submitted. The application must be submitted before the commencement of the first employment contract. If an employer wishes to employ more than 20 people with the subsidy, they must submit a new application before the commencement of the additional employment. In the case of employing several people, a single application may be submitted.

When do I have to pay back the job creation subsidy?

The employer has to repay the job creation subsidy in full if the employment contract is terminated on the initiative of the employer during the two years following entry into the employment contract, or a fixed-term employment contract of less than two years is terminated on the initiative of the employer before the deadline.


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