Activation allowance

This article is written according to the legal status current as of: 2020-06-16

Activation allowance

What is an activation allowance?

It is an allowance that can be granted by the labour office for employing a designated unemployed person on the basis of a contract.

Whom should I employ in order to receive an activation allowance?

The labour office may grant you an activation allowance for employing on a full-time basis:

  • a designated unemployed parent returning to the labour market after the break caused by the necessity to stay home and take care of their child,
  • an unemployed person taking care of a dependant,

who within 3 years before registration with the labour office as an unemployed person resigned from employment or other paid work due to the necessity to take care of their child or dependant.

Why is it worth applying for?

If you employ one of the above-mentioned persons, you will be receiving an activation allowance for the period of:

  • 12 months in the amount of half of the minimum monthly remuneration per month or
  • 18 months in the amount of one third of the minimum monthly remuneration per month.

How long should the employment be maintained?

You should employ the designated unemployed person for the subsidized period, that is 12 or 18 months respectively, and – additionally – you are obliged to employ the designated person for another 6 months in the case of 12-month activation allowance or 9 months in the case of 18-month activation allowance.

Useful information

If you terminate the contract of employment during the subsidized period or fail to maintain the employment for respectively 6 or 9 months after the subsidized period, you will be obliged to return the entire amount of the activation allowance together with the statutory interest calculated from the day of receiving the first payment of the activation allowance within 30 days of receiving a notice from the labout office.
If you maintain the employment for the subsidized period and for at least half of the required period after the subsidized period, you will be obliged to return 50% of the amount indicated above.

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 9-month period, the competent labour office designates another unemployed person to fill the vacancy.     

The activation allowance 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. 66b)
Development: Editorial team of Zielona Linia

Development: Editorial team of Zielona Linia 

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