Albania: Employment promotion programs to help businesses and the unemployed

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financa.gov.al (23.09.2020)

Employment promotion programs have been designed as part of government support packages for the economic and social recovery caused by the pandemic. Their goal is the rapid reintegration into the labor market of jobseekers who have become unemployed as a result of COVID 19, avoiding their support through passive support schemes, such as unemployment benefits or economic assistance. Also, through payroll and mandatory social contributions, programs promote job creation and support companies in the recovery process

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Government launch an employment promotion program, that aims to cover part of reemployment costs of those who lost their jobs during the lockdown due to COVID19. 

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In the presence of the Prime Minister Edi Rama, the Minister of Finance and Economy, Anila Denaj, presented 3 employment schemes for re-entry in the labor market of individuals who lost their jobs due to the COVID-19 pandemic.

The presentation of these schemes was done during an activity where business representatives were also present.

Minister Denaj praised the employment promotion program, which was approved at the end of July and now businesses have their first experiences.

"If we go back in time, the focus of governance has always been not only economic growth, quality and intelligence, but above all employment growth, which goes with the same trend and goes to the quality of growth, in what is a healthy employment, said Minister Denaj, according to which, in the last 7 years, for the first time, economic growth has been translated into an increase in employment ".

The Minister stressed the fact that at the end of 2019 we recognize the lowest unemployment rate at 11.2%. It is also an achievement compared to other countries in the Western Balkans.

At the end of 2019 we had 693 thousand employees from 450 thousand employees at the end of 2012 and specifically an increase of 55% of employment.

The Minister said that we aim not only at employment in number, but also at quality employment. "For this reason," she said, "we passed a very important law last year, that of promoting employment, which not only creates a healthy legal basis, but also for our National Agency for Employment and Promotion of Vocational Education." Above all, it creates the opportunity and an important basis to be followed in relation to all the instruments that are currently being used ", added Denaj.

AKPA, said the Minister, to make this qualitative increase not only mediates employment between business and jobseekers, but promotes vocational education.

"We have mediated 190 thousand employments through employment offices in the time frame of 7 years and we are aware that we still have a lot of work to do and not only through the three programs that we will present today but for all the following time", said the Minister Denaj.

Focusing on the situation created due to the pandemic, the Minister said that for all businesses it has been a difficult situation to cope with and the focus of all immediate government support has been the elimination of exit from the labor market.

"Through the first and second package, we aimed not only at the war package. "Through the first sovereign guarantee, we enabled businesses to have not only liquidity, but also through salaries to remove as few people as possible from the labor market", said the minister.

"Did we achieve this 100%? It is impossible, however today we have 88,000 unemployed in the AKPA from 66,000 at the end of February. The need to address this number with 20,000 adults of job seekers or others that we hope to be as few as possible, leads us to a package which has three components ", said Minister Denaj.

 

            Info on Employment Promotion Programs

Employment promotion programs have been designed as part of government support packages for the economic and social recovery caused by the pandemic. Their goal is the rapid reintegration into the labor market of jobseekers who have become unemployed as a result of COVID 19, avoiding their support through passive support schemes, such as unemployment benefits or economic assistance. Also, through payroll and mandatory social contributions, programs promote job creation and support companies in the recovery process.

Employment programs provide employment in periods of 4, 8 or 12 months, depending on the profile and needs of the jobseeker according to the vacancy. Meanwhile, the employer will be offered a subsidy depending on the period of employment of the staff for:

4-month employment program:

Salary financing in the amount of 100% of the national minimum wage, determined according to the legislation in force, for 2 (two) months for all participants in the program, compensated in the first and fourth month of the contract;

Compulsory social and health contributions (part of the employer's contribution), calculated on the basis of the national minimum wage, provided throughout the duration of employment, reimbursed on a monthly basis.

8-month employment program:

Salary financing in the amount of 100% of the national minimum wage, determined according to the legislation in force, for 4 (four) months for all program participants, compensated in the first, second, seventh and eighth month of contract;

Compulsory social and health contributions (part of the employer's contribution), calculated on the basis of the national minimum wage, provided throughout the duration of employment, reimbursed on a monthly basis.

12-month employment program:

Subsidizing the costs of financing compulsory insurance (employer and employee contribution) in the amount of 100 (one hundred)%, calculated on the basis of the national minimum wage, determined according to the legislation in force, provided throughout the duration of the program , compensated monthly.

The National Employment and Skills Agency is the institution responsible for registering interested employers and follows the procedures for benefits from these employment programs.