Wage Subsidies for Employees Over 50

Wage subsidies for employing a designated unemployed person over 50 years old is a form of financial aid that may be granted to an employer by the competent labour office.

Why is worth applying for?

If you employ a designated unemployed person you will be receiving a wage subsidy for the period of:

• 12 months – in the case of an employee over 50 and under 60,
• 24 months – in the case of an employee over 60.

What is the amount of this financial aid?

The amount of the financial aid granted in the form of wage subsidies is indicated in the contract concluded between you and the competent labour office. However, it cannot exceed 50 % of the monthly minimum wage applicable at the time of the conclusion of the contract.

How long must a designated person be employed afterwards?

The employer is obliged to employ a designated unemployed person for the subsidized period indicated in the contract. Subsequently, the employment must continue for another:

• 6 months – if the employer received the subsidies for 12 months,
• 12 months – if the employer received the subsidies for 24 months.

Useful information

If you terminate the contract of employment during the subsidized period or breach one of the other contract terms, you will be obliged to return all of the previously received wage subsidies together with the statutory interest on the entire amount of subsidies calculated from the day of paying out of the first subsidy. You must return the subsidies within 30 days of receiving a notice.

In the case of maintaining employment for at least half of the required period after the subsidized period,  you will have to return 50% of the above-mentioned amount.

If the contract of employment is terminated without notice due to the employee’s fault (the so-called disciplinary dismissal) or if the contract expires during the subsidized period or during the required 6- or 12-month period after the subsidies, the competent labour office designates another unemployed person to fill the vacancy.     

The wage subsidy for employing a designated unemployed person over 50 years old is granted under the terms of the admissibility of de minimis aid.    

Legal basis:
Act of 20 April 2004 on Employment Promotion and Labour Market Institutions (art. 66d)

Development: Editorial team of Zielona Linia