Employment subsidy for ages 55 and above

The subsidy may be granted to municipalities, joint municipal authorities or other corporations or employers, but not central government agencies or institutions. Employment subsidy may be granted to natural persons only for the purpose of economic activity. 

Employment services may grant employment subsidy for ages 55 and above to employers to cover salary costs as long as: 

1. the unemployed jobseeker hired for the job is aged 55 or older
2. the unemployed jobseeker hired for the job has been unemployed for at least 24 months during the 28 months immediately preceding the granting of employment subsidy
3. the minimum working hours guaranteed by the employment contract are 25 hours a week or, if the maximum regular working hours in the industry are less than 37.5 hours a week, at least 65% of the maximum regular working hours in the industry. 

Furthermore, in order to be granted employment subsidy, the employer must commit to paying at least a salary or wages in accordance with the applicable collective agreement or, if no such collective agreement exists, a normal and reasonable salary or wages for the job in question.

Employment subsidy is not granted if:

1. the employer has discharged employees for production-related or economic reasons during the 12 months preceding the employer’s application for employment subsidy and, since then, the employer has not hired employees to the degree that the number of employees employed by the employer at the time of employment subsidy being granted is at least as high as the number of employees employed by the employer at the time of discharge
2. the employer has neglected their obligation to pay wages, salaries, taxes or statutory fees
3. the employer has previously been granted employment subsidy for ages 55 and above or pay subsidy to cover the salary costs arising from employing the same person and it has been less than three years since the discontinuation of the subsidy
4. the employer has been granted other financial support for the salary costs of the same individual
5. the employment relationship for which the subsidy is intended starts before the decision is made to grant the subsidy
6. the salary or wages of the person hired with employment subsidy are determined solely based on work performance.

The purpose of the subsidy is to improve the professional or entrepreneurial skills of persons aged 55 and above.

Employers can receive financial support for salary costs when hiring an unemployed jobseeker aged 55 or above.