BUSINESS

Jobless benefit may turn into work subsidy

ROULA SALOUROU

TAGS: Finance

The Labor Ministry is considering the adoption of a pilot program that would subsidize companies that hire jobless workers who currently receive unemployment benefits from the Manpower Organization (OAED). The idea is that the unemployment allowance would be transformed into an employment subsidy in cooperation with representatives of small and medium-sized businesses.

In a meeting between the representatives and Labor Minister Giorgos Katrougalos along with other officials yesterday, the former heard the government’s idea for the setup of a program on a pilot basis that would subsidize the employment of 10,000 jobless people through the use of money allocated for the unemployed.

The main condition for participating in the program would be for the jobless worker to agree to it, as, in practice, their unemployment benefit of up to 360 euros per month would be topped up by their employer so that they could receive at least the minimum salary.

SME representatives viewed the proposal in a positive light. Companies that have resorted to layoffs in the previous quarter will not be allowed to participate in the program. The program will last at least 12 months, with a possible extension to the subsidy period for another six months.
 

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