23.05.2024 Labour law

[Poland] The government will support companies employing seniors. New package of solutions

The Ministry of Labor and Social Policy (MRPiPS) presented a draft act on the labour market and employment services. The goal is, among others, the professional activation of seniors by supporting entrepreneurs employing them. The project also envisages introducing changes in the activities of public employment agencies.

Employing seniors – subsidies for companies up to 50% of the minimum wage

The labour market is constantly evolving, forcing changes and the development of new regulations. The draft Act on the labour market and employment services is intended to fulfil the assumptions of the National Reconstruction and Resilience Plan (KPO) by introducing solutions that respond to the needs of job seekers, the unemployed and entrepreneurs. One of the proposals is to support entrepreneurs in employing seniors.

The new professional activation programme for seniors will include subsidies for:

  • for companies employing seniors – people aged 60+ (60 years – a woman or 65 years – a man),
  • in the amount of up to 50% of the minimum wage,
  • paid for 2 years, and after the end of this period, the employer will be obliged to continue employing the senior for another 12 months.

The aim of the programme is to increase the participation of older people in the labour market. The subsidy is primarily intended to encourage companies to employ seniors, and the programme itself seems to be beneficial both for seniors, who will gain a new job opportunity, and for companies, which will benefit from their knowledge and many years of professional experience.

The new regulations will adapt the labour market to current needs

The project in question constitutes the implementation of part of the milestone of the reform: Effective institutions for the labour market. Therefore, in addition to the solutions aimed at professional activation of seniors, the project also includes other planned changes, including:

  • Support for employers, including reducing bureaucracy and reporting obligations for entrepreneurs,
  • Increasing the mobility of people looking for work by abolishing the link between an unemployed person and the employment office competent for the place of residence,
  • Shortening the time of looking for a job by supporting families, people returning to the labour market after the birth of a child, people caring for dependent people (children, elderly parents, the sick, etc.) in finding employment,
  • Modernization and automation of public employment agencies,
  • Increasing access to the National Training Fund (KFS) for people running sole proprietorships and people working under civil law contracts,
  • Making the management of Labour Fund funds more flexible.

The designed solutions are to be adopted by the Council of Ministers in the third quarter of 2024. The body responsible for the project is the Ministry of Labour and Social Policy (MRPiPS).

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