Application process to subsidize 40% of employee and employer contributions for businesses wishing to convert part-time contracts of their employees to full-time.

The relevant joint ministerial decision on the program to convert part-time contracts to full-time contracts through subsidizing insurance premiums for one year, was signed yesterday and among other things provides for strict security measures, such as the payment of all subsidized contributions, increased by 100%, in the event that, after verification, it is found that the inclusion conditions are not met. In practice, the company is excluded from the program, deprived of the subsidy, and insurance premiums are charged on it, covered from the state budget in the amount of 100% in an increased amount.

The basic condition for inclusion is that companies wishing to apply by September 9, 2022 have hired part-time employees in excess of 50% of all their employees.

In addition, after joining, specific enterprises must be aware of taxes and insurance or settle any debts to the state, EFKA and TEKA, and the regulation must be complied with on the date of application. Applications can be submitted by businesses until December 31, 2023, and if approved, employees must also apply.

Eligible for conversion are part-time contracts entered into on or before September 9, 2022, which remain part-time contracts on the date of application to PS. “tool”.

Businesses that join the program are subsidized at a rate of 40% for each part-time contract converted to full-time for one year from the date of contract conversion. The subsidy covers insurance premiums, insured persons and employers, as well as contributions related to holiday gifts and vacation pay. Contributions are calculated from the monthly salary of the employee.

This applies to businesses that will be converting part-time contracts to full-time contracts.

When included in the program, companies must retain the same number of employees on average for one year from the date of conversion of the employment contract.

Converted full-time employment contracts cannot be terminated by companies until one year has elapsed from the date of their conversion, unless there is an important reason relating to the employee.

In addition, changes to the terms of converted full-time employment contracts are not allowed during the subsidized period, unless they are more favorable. Converting full-time contracts to part-time contracts is also not allowed.

Regarding the enrollment process, it is stipulated that each company must submit a separate electronic application for each employee – a responsible application and upload a certificate of insurance and tax awareness. After receiving the necessary approval, employees must also submit a similar electronic application for acceptance to the program on the electronic platform supportemployees.services.gov.gr.

Subsequently, companies no later than within 15 days of submitting and approving their application must submit Form E4: Wage Change in terms of wage change items in order to finalize the employee’s inclusion in the program.