Polish employers to get subsidies for hiring under 30’s

Polish president Andrzej Duda has signed a new act which will allow for the costs of employing an under-30 unemployed person to be partially reimbursed. It comes into effect in two months.

The act on employment, promotion, and labour market institutions, amended by Parliament on September 25th, will allow 100 thousand young people to find employment.

What changes?

The changes were introduced by the deputies of the present coalition government. The amendment allows refunds to employers for hiring young people. It is expected that 3 billion złoty will be spent for help in finding first jobs for young people.

According to the signed amendment an employer will receive a monthly reimbursement in the amount of the minimum Polish wage (1750.00zł gross in 2015) for the first 12 months. Over the next 12 months he will be required to continue to employ said employee, but using his own funds. However, he will still have access to the National Training Fund and money to improve his employees’ skills.

The refunds will be available from 1 January 2016. The amendment defines the distribution of resources between the voivodships and the principles of transfering and settling the payments.

Prognoses

The government in their legislative work on the new act calculated that it is possible to spend up to 700 million złoty on the refunds in 2016, and in subsequent years up to 1 billion 50 million złoty.

According to the government in the first year approx. 30 thousand unemployed under 30 may take advantage of the aid, and in three years – 100 thousand.

It is calculated that the support will benefit 20% of all eligible persons under 30 years of age (114 832 young people), of whom 90% (103 349) will find permanent employment (so the employers will not be required to pay back the support money together with statutory interest).

The employment refund cannot be used by companies which have dismissed employees in the last six months. This provision is to prevent the employers from replacing their current employees with young unemployed only to get a subsidy from the Labour Fund.

The project was submitted by the deputies of PSL (Polskie Stronnictwo Ludowe – Polish Peasant Party) and PO (Platforma Obywatelska – Civic Platform), but it was an element of the election campaign of former president Bronisław Komorowski called “Good start for the young”. The changes will come into force of law 14 days after their publication.



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