Published: 27.12.2022.

 

ESF project "Subsidised jobs for the unemployed" No 9.1.1.1/15/I/001

The State Employment Agency (hereinafter - SEA), in cooperation with natural and legal persons, organises the creation of subsidised workplaces, in which unemployed persons of the target group are employed on an equal basis.

Purpose of the measure:

The aim of the Wage Subsidy Support Measure (hereinafter 'the Measure') is to employ the unemployed in publicly co-financed jobs to help overcome the effects of the emergency situation on the labour market and to facilitate the placement of the unemployed in permanent employment. The measure is implemented within the framework of the ESF project "Subsidised jobs for the unemployed" No 9.1.1.1/15/I/001.

Employers who can apply for the Measure:

  • Business entities (except medical institutions in which the state or local government's share in the share capital exceeds 50% individually or in total, as well as educational institutions whose main task is the implementation of educational programmes);
  • Self-employed persons;
  • Cooperative companies.

Information on the target groups of the unemployed, the duration of their employment in the Measure and the provision of financial support to employers during the implementation of the Measure: 

Target group: Unemployed person who is not participating in active employment measures involving the conclusion of an employment contract and who has not been employed by the relevant employer in the last two months prior to participation in the Measure or has not previously been employed by the relevant employer under the Measure or the active employment measure “Measures for certain groups of persons”.

Duration of employment as a part of the Measure:* 6 months.

Financial aid to the employer** under Commission Regulation 1407/2013 (de minimis aid): ** 

  • A subsidy of 50% of the monthly salary of an unemployed person, up to the national minimum wage, in proportion to the number of days worked per month;
  • Costs for the purchase of personal protective equipment to reduce the risk of infection caused by the outbreak of Covid-19 pandemic, up to a maximum of EUR 50 per unemployed person if participation in the Measure has started by 31 December 2021.

* The duration of employment of an unemployed person in the Measure is 3 months for contracts concluded before 31 December 2020, and 6 months for contracts concluded after 1 January 2021, for which the SEA covers the financial support. The unemployed person must have an employment contract and continue to be employed for a period of at least three months longer than the duration of the unemployed person's employment in the Measure, maintaining the occupation defined for the unemployed person in the Measure and maintaining at least the monthly wage defined for the unemployed person in the Measure.


** During the implementation of the Measure, all other costs provided for by labour law (e.g. allowances, bonuses, sick leave, holiday pay, etc.), including those defined as private co-financing, will be borne by the employer.

Funding granted by the SEA within the framework of COMMISSION REGULATION No 1407/2013 (DE MINIMIS) constitutes de minimis aid if it is granted in accordance with Commission Regulation (EU) No 1407/2013 of 18 December 2013 on the application of Articles 107 and 108 of the Treaty to de minimis aid (Official Journal of the European Union of 24 December 2013, No L 352/1) and other regulatory enactments in force in the Republic of Latvia which determine the procedure for granting and accounting for de minimis aid. The moment when de minimis aid is granted is the date of entry into force of the contract. 

 During the implementation of the Measure, the employer receives financial support from the SEA and participates in the implementation of the Measure with its PRIVATE FUNDING, which consists of:

  • a share of the monthly wages of the unemployed in such an amount that, together with the share of the SEA subsidy, the wages of the unemployed reach at least the national minimum monthly wage for full-time work.
  • Mandatory State Social Insurance Contributions for the unemployed persons participating in the Measure.

The employer's private co-financing cannot be replaced by another EU instrument/fund or the same EU fund in another programme, or by national or local government funding.


The Employer shall ensure that the risk of DOUBLE FINANCING is eliminated during the implementation of the Measure, in accordance with Article 65(11) of Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006. During the implementation of the Measure, the employer cannot receive support from another EU instrument/fund, nor support from the same EU fund under another programme, for the remuneration of the same person participating in the Measure.

How can an employer apply for the Measure?

 

1.Step

Important!

The vacancy must be registered before the date of application (but not before 12 March 2020).

Choose an unemployed person from the target group, either through a selection process with the help of the SEA or by mutual agreement with the unemployed person. Fill in the application form and attach the information requested.

As of 23 April 2021, confirm compliance with the Cabinet of Ministers Regulation No 75 of 25 January 2011 “Regulations Regarding the Procedures for the Organising and Financing of Active Employment Measures and Preventative Measures for Unemployment Reduction and Principles for the Selection of Implementers of Measures” (hereinafter - CR No 75) Article 10921 (2) the number of unemployed persons participating in the wage subsidy aid measure (the total number of unemployed persons participating in the Measure and total number of jobs submitted to SEA) does not exceed 50 % of the total number of employees of the employer (incl. unemployed persons employed under active employment measures of the SEA, with whom a contract of employment has been concluded, excluding the number of unemployed persons to be included in the Measure), but not more than 20 persons;

2.Step

  • The completed application must be submitted in person or sent by post or signed with a secure electronic signature and submitted to the branch of the SEA in whose administrative territory the subsidised jobs are to be created.

3.Step

  • The SEA branch evaluates employers' applications and decides whether to approve or refuse the creation of subsidised jobs.

4.Step

  • The SEA branch informs the employer in writing about the decision and, in case of a positive response, invites the employer to conclude a contract for the creation of subsidised jobs within one month from the date of entry into force of the Commission's decision.