VIDEO: Employers Hiring Unemployed Individuals to Receive Financial Support from State Budget

Employers hiring unemployed individuals will receive financial support from the state budget. Specifically, this applies to those who have disability status or are members of families receiving family or social assistance. The initiative aimed at promoting employment was approved at a cabinet meeting today.

During the presentation of the project, the Minister of Labor and Social Affairs, Narek Mkrtchyan, stated that employers will receive reimbursement only after the completion of the program and the termination of employment relations. In this context, Prime Minister Nikol Pashinyan noted that beneficiaries who are employed with state support will again become unemployed after the reimbursement deadline.

"You say, 'We will give that money within 5 days after the termination of employment relations.' You tell that person to dismiss so we can give you your money. What is the logic behind this?" Pashinyan asked.

According to Narek Sargsyan, the discussion is not about the termination of employment relations but about the expiration of the program's timeframe. "You should pay attention to the formulations," the Prime Minister remarked.

It is worth noting that for the age distribution of beneficiaries, the government has based its criteria on the 'Ameria' and 'Civitta Armenia' studies. A mandatory condition for receiving assistance from the program is that the individual must be receiving family or social benefits and must not have any paid employment in the last three months.

Reimbursement is planned for those employers who have had at least 10 paid employees in the three months preceding the program and have no employment relations with the unemployed person hired through the program.

The main component of the program is the full or partial reimbursement of income tax deducted from the employee's salary to the employer. Moreover, the amount and duration of support will depend on the age, gender, parental status, and disability status of the individual being hired.

Details can be found in the video.

The new rule approved by the government will come into effect the day after its publication and will remain in force until August 1, 2023. It will be clear only after August 1 whether the program will continue thereafter, as relevant bodies will conduct an interim assessment of the program's results.