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Macedonia Employs II

Macedonia Employs II

Macedonia
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The government project for decrease of the unemployment, which finished at April 2016, is now going to be repeated for a second time under the same name, “Macedonia Employs II”.

The project is going to involve a direct assistance from the government for the business sector that needs new employees but lacks the resourses to fund it. The business that are going to sign up for this project can hire unemployed individuals for which the entity shall not be obligated to pay the benefits for that employee. The only obligation for the employer is not to reduce the number of the employee for a certain period of time after the using of the benefits of this project. 

The project "Macedonia Employs” was initiated in order to reduce unemployment by creating new jobs with coverage of different categories of unemployed persons difficult to enter the labor market. The package of measures, which provides incentives for companies exemption from payment of contributions for compulsory social insurance for all new staff within the project, contributed 10140 companies employ 19,000 people in just one year. 

The new package, “Macedonia Employs II”, is expected 20,000 new jobs in lower costs for employers and thus solving the existential question of thousands of people who wait for their first employment. The package includes five categories of unemployed individuals:

First group: unemployed individuals under 35 years of age, who has not been employed previously or who had previously been employed but have been unemployed for at least three months prior to the application. Companies will be exempt from payment of contributions for compulsory social insurance and personal income tax, for a period for 3 years from the date of employment, where the employer is obliged to detain the person for 1 year after expiry of the period, which is exempt from paying contributions and personal income tax.

A second group of unemployed individuals aged 35 to 50 years, who at the last 15 years were more than 5 years employed and at least three months prior to recruitment had not been under employment. The employer that hire a person from this group will be exempted from payment of contributions for compulsory social-life insurance for a period of 5 years from the date of employment in which he is obliged to detain the person for 1 year after the period in which is exempt from payment of contributions compulsory social insurance.

A third group of unemployed individuals aged over 50 years and at least three months prior to recruitment had based employment. The employer that will hire a person from this group will be exempted from payment of contributions for compulsory social insurance for a period of 60 months from the date of employment. The employer has no obligation to keep the employee for additional months of work after the usage of the measure.

Fourth group refers to the oldest unemployed individuals that are over 58 years and are unemployed for the last two years. An employer that will hire an individual of this group will be released from payment of contributions for compulsory social insurance until meeting the conditions for retirement pension.

Fifth group of unemployed persons who are parents of three or more children and at least three months prior to recruitment had not been employment; single parents and members of single parent families where at least three months prior to recruitment had not been employment; recipients of social assistance; children without parental care; victims of domestic violence; disabled person with a diagnosed disability according to the Law for employment of disabled persons and persons with reduced work capacity determined or professional inability to work for 50% according to the regulations of the Pension and Disability Insurance; professional soldiers whose employment was terminated under the Law on Service in the Army of the Republic and parents of children with disabilities that are unemployed for at least three months prior to employment. Exemption from payment of contributions for compulsory social insurance and personal income tax applies for a period of 5 years from the date of the employment.

By Dragan Dameski, Partner, and Martin Boskoski, Senior Associate Debarliev, Dameski & Kelesoska Attorneys at Law a member of TLA.

Macedonia Knowledge Partner

ODI is one of the leading independent corporate law firms in South-Eastern Europe and one of the fastest growing in the region with a team of 40 lawyers which provides legal services to a wide range of premier clients, including local and multinational corporations and financial institutions.  With permanent presence in all ex-Yugoslavia countries by offices in Slovenia, Serbia, Croatia and Macedonia and working desks for Bosnia and Montenegro ODI provides seamless service in the region for all cross-border projects and prides itself on an unmatched understanding of the business cultures in the region. The 4 core practice areas are M&A, Corporate Restructuring, Banking Finance and Dispute Resolution. ODI team has a reputation for successfully managing large and complex multi-jurisdictional transactions, disputes and projects, and delivering outstanding outcomes for clients.

Firm's website: http://www.odilaw.com/

 

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