FSA published – The scheme was established to increase the number of full-time contract employees by incentivizing private sector businesses
The way opens for her implementation of the insurance contribution subsidy program for one year for the conversion of part-time to full-time contracts, following the publication of the Joint Ministerial Decision (Government Gazette B’ 1217/6.3.3023) which specifies the terms and conditions. The program was established in Law 4997/2022 (article 9) with the aim of increasing the number of employees with full-time contracts, by providing incentives to private sector businesses.
The main points of the CPA are as follows:
-The start date of the program is valid from the publication of the KYA and the submission of applications is valid until December 31, 2023.
– The program includes all types of businesses, regardless of legal form, that on September 9, 2022 employed employees with a part-time employment contract at a rate of more than 50% of all their employees. The companies in question must, upon joining, be tax and insurance aware or have settled any debts to the State, EFKA, TEKA and other social security bodies and the regulation must be respected on the date of submission of the application.
– Eligible for conversion are part-time contracts concluded up to and including September 9, 2022 and which are still part-time contracts on the date of submission of the relevant application to the P.S. ERGANI.
– The converted full-time employment contracts of the employees included in the program must have a duration of at least one year, from the date of submission of the employer’s application.
– For the companies that are part of the program, the insurance contributions, insured and employer, as well as those related to holiday gifts and leave allowance are subsidized at a rate of 40% for each part-time contract that is converted into a full-time one. Insurance contributions are subsidized by the state budget, for a period of one year starting from the date of conversion of the employment contract. They are calculated on the employee’s monthly salary.
-During inclusion in the program, companies must maintain on average the same number of employees for one year from the date of conversion of the employment contract. For the calculation of the number of employees, the active jobs on September 9, 2022 are taken into account. The number of employees taken into account for the control of the criterion of maintaining the average number of jobs refers to the total number of employees paid by a salary or a daily wage, with a dependent employment relationship under private law (fixed or indefinite), with full or reduced employment. Employees whose employment contract is automatically terminated (fixed-term employment contract), terminated due to retirement and employees who leave voluntarily are not counted.
– Converted full-time employment contracts cannot be terminated by companies before one year has passed since their conversion, unless it is due to an important reason concerning the employee.
-During the subsidy period, it is not allowed to change the terms of the converted full-time employment contracts, unless they are more favorable for the workers employed under these contracts. Conversion of full-time to part-time contracts is also not allowed.
The process of joining the program
With regard to the process of inclusion in the program, it is provided that:
1. Each company submits for each employee a separate electronic application – responsible declaration on a special form entitled: “Application – Responsible Declaration of employers joining the Program for converting part-time salaried employees’ employment contracts into full-time employment contracts of Article 9 of Law 4997/2022 of the Ministry of Labor and Social Affairs” which states the following:
i) the details of the business
ii) the data of the employee who wishes to include in the program,
iii) that it is tax and insurance aware and will remain so throughout the duration of the subsidy program or has settled any confirmed debts to the State and social security bodies and the settlement will be respected
iv) that it will maintain, on average, the same number of employees for the period of subsidy of the insurance contributions
v) that the duration of the converted contract will be at least one year and will not be terminated before the expiry of one year from the conversion and its terms will not be changed unless they are more favorable to the employee
2. Businesses together with the application – responsible declaration post evidence of insurance and tax awareness.
3. The data declared in the application and the conditions for inclusion in the program concerning the employee, are checked and cross-checked by the P.S. ERGANI on the date of submission of the application.
4. Businesses receive proof of the approval or rejection of their application.
5. After the approval of the application and in order to complete the process of their inclusion, it is required:
i) The employees who join the program submit an electronic application for acceptance of inclusion on a special form entitled: “Application – Responsible Declaration of acceptance of inclusion in the Program for the conversion of part-time salaried employees’ employment contracts into full-time employment contracts of article 9 of Law 4997/ 2022 of the Ministry of Labor and Social Affairs” on the online platform supportemployees.services.gov.gr
ii) Businesses, no later than 15 days after the submission and approval of their application, submit form E4: “Amendment of Salaries” regarding the details of the change in salaries.
6. By submitting the required information no later than the 15th day from the submission of the application, compliance with the conditions is cross-checked and checked. As long as it is established that these are fulfilled, the employee’s inclusion in the program is finally approved.
7. Finally, it should be noted that in the event that the audits conclude that the inclusion conditions are not met, the company is excluded from the program, i.e. it loses the subsidy and the insurance contributions covered by the state budget are charged to it increased by 100%.
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