Employment Premium

The employment premium is a fixed one-off premium of 4,000 euros granted by the TE Office with the aim of encouraging employers to offer employment relationships of indefinite duration at the start of or during payment subsidy periods. The premium is granted as a de minimis subsidy.

The employment premium is piloted between 1 January and 30 June 2019.

The TE Office may grant an employment premium for an employer enterprise that has been granted a pay subsidy not earlier than 1 September 2018 under the following conditions:

  • The premium is used for covering the costs of recruiting an employee who has been unemployed for 12 months during the 14 months that immediately precede the granting of the pay subsidy or who has been unemployed for 24 months during the 28 preceding months or 
  • the pay subsidy has been granted on the basis of the employee’s disability or medical condition which decreases their productivity in the offered assignments materially and permanently or on a permanent basis.
  • The employment relationship has been concluded for an indefinite duration immediately at the start of the work supported by pay subsidy or the relationship’s nature has been changed from fixed to indefinite during the pay subsidy period.
  • If the work supported by pay subsidy has started between 1 September and 31 December 2018, an employment premium can only be granted if the employment contract is made indefinitely valid during the decree’s validity, that is, after 1 January 2019.
  • The employment relationship starts during the pay subsidy period or immediately after its end, and the number of working hours exceeds 80% of the industry’s applicable maximum working hours for full-time employees.
  • The pay subsidy covers at the most 40% or 50% of employment costs.

How to apply

You can apply for the premium by sending the Employment Premium Application to the TE Office registry by mail. You can download the application from the links in the sidebar of this page. The registry’s address is available at the local TE Office’s contact information page.

Local TE Services

Apply for the premium within three months of the end of the calendar month during which the indefinitely valid employment contract was concluded. The employment relationship must be effective when applying for the premium.

An employment premium may be granted and paid if the indefinitely valid employment relationship has started by the end of June 2019, and all of the requirements for granting the premium are met.