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Lay off older employees
More than a week ago, Seimas decided to pay higher subsidies to those employers who will turn 60. and older people in the job market through quarantine and emergency and won’t fire them.
Such changes were made after it became clear that most older people were fired from the job market during quarantine.
Data provided by the Ministry of Social Security and Labor (SADM) in early June showed that in March-May, most people lost their jobs to people over 65. people, like 6.4 percent. In second place by age group, people between 20 and 25 years old (4.5%) lost their jobs, thirdly, 61 to 65 years old. population, such was 4.1 percent.
In response to the situation for this reason, Seimas decided to increase the number of employers for 60 years. and the amount of subsidies paid to the elderly. It has been argued that this will keep older workers in jobs until companies return to previous levels of work.
The new procedure stipulates that the employer may receive 100 percent. subsidy of the calculated salary but not more than 607 euros gross, it will also be possible to choose the second option: receive 70%. of the calculated salary, but may not amount to more than 910.5 euros gross.
It was also explained that after the end of quarantine and the emergency or after the employee’s return from downtime, the employer may continue to apply for 6 months. subsidies for the same employee’s salary: 100% in the first and second month, 50% in the third and fourth month, 30% in the fifth and sixth month.
Downtime of more than 60 years: 18 thousand.
According to the Employment Service (UT), there are currently a total of 18,000 applications for subsidies during downtime. 370 people of 60 years. and older.
“Of these, 1579 people over the age of 70, 83 people over the age of 80.
10,614 people 60 years of age or older submitted applications for benefits for own-account workers, ”reported the UT representative, adding that it was not less important that they could be requested when the law passed by the Seimas was signed by President Gitanas Nausėda.
It is true how many employers will receive 100 percent. subsidies, it is not clear, since the amount will be chosen by the employer itself if possible.
According to the State Labor Inspectorate, the total number of companies that have declared downtime is just over 25 thousand. They can be found here.
According to the Ministry of Social Affairs, the funds to be allocated to the oldest employees (from the age of 60) were not allocated separately from the fully planned amount of subsidies.
A total of 250 million euros is foreseen for subsidies for workers with downtime. EUR.
Delfi recalls that on Wednesday, the government also approved a plan of measures for a coronavirus management strategy, which, among other things, stipulates that the population at risk of coronavirus and other serious communicable diseases will be people 60 years of age or older.
The editorial asked if this would not affect the new approved 100% subsidy scheme. Benefits granted to people over 60 years, the representatives of the Ministry of Social Affairs confirmed that there will be no changes in this regard.
“Nothing will really change in this regard, because it is people of pre-retirement age (60 years or older) who fear that the economic difficulties caused by the pandemic will prevent employers from keeping them on the job,” said a ministry spokeswoman.
See the problem
However, this new regime to subsidize jobs for older people does not seem appropriate for everyone. According to Swedbank economist Nerijus Mačiulis, this is not a very effective tool to eliminate stereotypes in the labor market and help increase the employment of older people and keep them in the labor market.
Nerijus Mačiulis
“Such a move is justified in principle only because older people are at risk, can become infected, have higher death rates, and need more protection than workers in other age groups.”
But in this situation we have another problem. If we allow those workers to be out of work, they may be low, the costs of that work are subsidized, the company still needs workers, something has to be accepted, and the return of those older workers to the job market after a pandemic after Downtime may be even more difficult because other employees were hired instead, perhaps they lost their skills.
I’m afraid this may even exacerbate the employment problem for the elderly, “the economist told the radio news program.
He suggested that alternative measures should be sought to encourage the inclusion of older people in the labor market.
“Well, the measures could include, for example, lower social security contributions for older people, and it seems to me that a year ago another proposal was considered to exempt retired workers from social security contributions, that is, when they retire while they’re still retired. ” They also work, do not demand more from the state itself, and contribute to their own income and the state still requires them to pay additional contributions to social security.
Such a regression of social security contributions, a reduction in the tax burden of older people, could encourage them to participate more actively in the labor market and remain in the labor market, not necessarily full-time, but even more part-time. and possibly more attractive. in the labor market, “said the economist.
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