Prime Minister Dacian Ciolos says that the Government approved incentives and measures that will lead to the creation of jobs, adding that it’s for the first time when European funds and the funds from the state budget are coherently directed in order to have a real impact on the market and on people’s lives.
“A package of measures was approved today by the Government, in order to support the job-seekers, the employers, but also the Romanians abroad who want to work in Romania. There are incentives and correlated measures that will lead to job creation and which are coming with an actual support for the vulnerable categories. For instance, we propose a consistent financial support for those employing jobless persons, but also for the unemployed who find a job far from home. Moreover, the employment programs will aim at the vulnerable groups – already identified – through the Anti-poverty Package – such as young people who don’t have a job and aren’t enrolled in any form of education or vocational training. All this in a framework combining for the first time the European funds and the state-budget funds coherently directed for a real impact in the market and in people’s lives,” Ciolos wrote on Wednesday on his Facebook page.
Gov’t introduces activation bonuses, relocation benefits for job seekers
The Government on Wednesday passed an emergency ordinance comprising measures to fight unemployment and boost employment of vulnerable workers, according to Labour Minister Dragos Pislaru.
“There is an activation bonus of 500 lei for each long-term unemployed who is paid the guaranteed minimum wage and who concludes an employment contract,” the minister said, explaining that in order to qualify for the bonus the unemployed has to stay with the same employers for at least three months.
Pislaru added that the ordinance also includes a so called mobility package that entails government aid for commute and relocation.
“We are introducing for the first time and redefining the concept of commute aid. We are also talking about a relocation bonus for any unemployed Romanian job seeker who will take a job more than 15 km away from the domicile, in the form of 0.5 lei per km subsidies capped at 55 lei a day that will allow them to travel for work,” Pislaru explained.
He said that if an investor wants to start up a business in a deprived area but he or she fails to find qualified labour, he or she will be allowed to hire unemployed people who will be paid 12,500 lei in relocation bonuses in two instalments: 50 percent upon the signing of the employment contact and the remaining 12 months after hiring.
“A radical change is we encourage the mobility of families. If someone finds a job more than 50 km away from home and brings along another family member – spouse of child – he or she will get an additional subsidy of 3,000 lei,” Pislaru added.
He said employers will also get subsidies, with the existing caps to be raised to 900 lei and the application base enlarged.
“We will be paying employers subsidies of 900 lei a month for 12 month, or even 18 months if they employ handicapped people, which is quite a significant share of the wages the less qualified workers are currently getting,” the minister added.
Also qualifying for the relocation bonuses are overseas Romanians returning to work in Romania.
“Anyone from Diaspora coming to the country, no matter where from, seeking mobility under this mobility offering will qualify for the 12,500 lei in bonuses,” said Pislaru.
He added that the provisions in the emergency ordinance will come into effect on December 1, 2016.