State to subsidize wages for new employees

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On Tuesday, June 16, the Cabinet supported the Welfare Ministry's (LM) proposal to provide financial support to employers for recruitment of new employees coming from the unemployed population, LM informed on June 16.

The employer will receive a subsidy of 50% of the employee's monthly salary for three months, but not more than €430 per month. This is due to amendments to the rules on the organization and financing of active employment measures and preventive measures for the reduction of unemployment, and the principles for the selection of implementing measures.

In order to promote permanent job creation, the amendments adopted require to employ the person no less than three months after the end of the implementation of the wage subsidy support measure.

Employers will be able to apply for this aid by December 31, 2021. The measure is intended to involve 15,000 unemployed people and €23.5 million is planned for funding.

The additional funding comes from the European Union (EU) funds.

"The subsidy program for recruiting the unemployed is a call for employers to evaluate and, if possible, to create jobs. The country is helping the crisis-stricken industries recover as quickly as possible. This program will ensure a bilateral effect – both creating jobs and reducing unemployment ranks,” said Welfare Minister Ramona Petraviča (“KPV LV”).

In addition, students with unemployed status will be given the opportunity to participate in a skill development event that would allow students to develop research, organizational, IT skills during their studies by performing certain tasks in their higher education institution.

The students involved in the event will receive a grant of €10 per day of participation (about €200 per month).

In temporary public employment, the unemployed will be allowed to be involved for up to six months a year instead of the current four.

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