Employer contributions subsidy program aims to boost full-time employment

 

Greece's Manpower Employment Agency (OEAD) this week inaugurated a program offering subsidies to employers to change the status of people they employ on a contract basis to wage-earners listed on their payroll.

 

Contract basis in this case means self-employed professionals who provide a services rendered invoice to their employer. This type of service is burdened with a 24-percent VAT rate - paid by the client or contracting employer - and a nearly quarter income tax withheld by the latter.

 

The employment-boosting program envisions a 12-month subsidized period to businesses to entice them into changing such employment dependent contracts into full-time work. Twelve months' worth of contributions - including vacation and holiday bonuses - by employers will be subsidized.