In order to help a young person who has little work experience, we grant a wage subsidy to the employer and compensate training costs of the hired young person.
The target group of the service is young people aged 16 - 29 who
- have been registered as unemployed and have not worked for three past months or have been temporarily involved in the activities listed in points 3-5 of § 6 subsection 5 of the Labour Market Services and Benefits Act for less than 30 days in total and
- have no or only short-term work experience (having worked for less than one year in the last three years or less than two years in total). Time spent on parental leave or conscription and alternative service is not calculated as part of the work experience period.
The employer must enter into an employment contract with a young person for an unspecified term or for a specified term of at least one year and, if necessary, provide training for the young person at the workplace and/or possibilities to participate in professional training.
A wage subsidy is granted to an employer for 12 months as of the commencement of employment by an employee (for a specified employment contract no more than half of the contract duration but no longer than 12 months). The amount of the subsidy per calendar month is 50 per cent of the wage or salary of the employee, but no more than twice the minimum wage.
We compensate the employer for work-related training to a value of up to 2,500 euros over two years from the date the young employee commences work. The aim is to facilitate the development of the young person’s skills and to improve one’s competitiveness on the labour market. The need for training and participation in the service must be agreed with us beforehand.
An employer must return the subsidy if the employment relationship is terminated on the initiative of the employer earlier than two years after entry into the employment contract or an employment relationship with a term of at least two years is prematurely terminated on the initiative of the employer.
The labour market service is co-financed by the European Social Fund of the European Union by regulation No. 222 of the Minister of Health and Labour of 4 December 2014 on the basis of ‘Provision of labour market services to facilitate employment opportunities’ .