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Employment subsidy for people aged 55 or over

The employment subsidy is a financial subsidy for employers for the salary costs of an unemployed jobseeker aged 55 or over.

Introduction

Residents
The employment subsidy is a benefit intended to promote the employment of unemployed jobseekers aged 55 or over that an employment authority can grant to an employer to cover pay costs. The purpose of the subsidy is to promote the employment of those aged 55 or over by improving their professional skills or entrepreneurial skills. The subsidy is granted and paid to the employer, but its granting is always based on the unemployed jobseeker's service need.

The employment subsidy requires that the…unemployed jobseeker hired for the employment relationship has reached the age of 55 and has been unemployed for at least 24 months in the 28 months immediately preceding the granting of the subsidy.

An employment subsidy may be granted for a employment contract valid until further notice or a fixed-term employment contract. The person hired with the subsidy must work for the recipient for at least 25 hours a week. If the regular working hours in the sector are less than 37.5 hours per week, the working hours must be at least 65 per cent of the regular working hours in the sector.

The unemployed jobseeker's employment plan or pay subsidy card includes a mention of the subsidy.

The amount of employment subsidy is 70 per cent of the wage costs. The aid may be granted for a period of 10 months but not longer than the duration of the employment relationship. The maximum amount of employment subsidy paid is €1,770 per month. The pay covered with the subsidy is the pay subject to withholding tax that is paid to the employee on the basis of working hours or the performance of a contract.

Prerequisites

A company, municipality, joint municipal authority or wellbeing services county or other entity, such as an association, foundation, registered religious community or parish can apply for employment subsidies.

The subsidy cannot be granted for an employment relationship that started before the decision to grant the subsidy was made.

As an employer, you undertake to pay the employee who has been hired with the subsidy at least the salary specified in the collective agreement applicable to the employment relationship or the normal and reasonable salary if there is no applicable collective agreement. The subsidy shall not be granted if the pay of the person to be hired with the subsidy would be determined solely on the basis of their work performance.

The subsidy cannot be granted if:
* the subsidy distorts competition vis-à-vis others offering the same products or services
* the employer has essentially neglected their obligation to pay wages or obligations to pay taxes or statutory payments
* the organisation you represent is a company in trouble as referred to in the General Block Exemption Regulation of EU State Aid or if the European Commission has issued a negative Recovery Order against it, which declares the subsidy as illegal or unsuitable for the internal market.

It is possible to receive support regardless of dismissals or lay-offs when the number of employees in an employment relationship at the time of applying for the subsidy is at least equal to the number of employees at the time of dismissal or lay-off. The subsidy may not impair the position of your other employees.

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Units

Service has 1 units in total