Scheme will incentivise businesses to hire additional employees from the Live RegisterThe Minister for Social Protection, Joan Burton, T.D. today (Friday, 22nd February, 2013) has announced details of the new JobsPlus scheme which will incentivise businesses to hire additional employees from the Live Register.
The innovative job creation scheme is focused on the long-term unemployed, providing a cash-flow benefit to businesses which hire jobseekers who have been on the Live Register for 12 months or more. It is one of a series of strategic and reforming measures which the Department of Social Protection is implementing as part of the Government's Action Plan for Jobs 2013.
Speaking at the opening of an Employment and Advice Fair in Marshes Shopping Centre in Dundalk, Minister Burton said: "JobsPlus will help businesses to create new jobs and reduce long-term unemployment. Since becoming Minister for Social Protection, I have radically reformed the Department's services for jobseekers, launching Intreo - a one-stop shop service which jobseekers can get their financial and employment supports in the one place for the first time. We are also implementing the Pathways to Work strategy, which aims to get
75,000 people who are currently long-term unemployed back into the workforce by 2015. JobsPlus is another valuable addition to the range of measures being undertaken by the Department to get people back to work."The scheme will provide a fixed grant payment to businesses for each new employee.
There will be two levels of incentive
• In respect of recruits unemployed for between 12 and 24 months: €7,500
• In respect of recruits unemployed for more than 24 months: €10,000
From an employer perspective, the typical value of the incentive over a two-year period is circa 23% of the gross minimum wage cost (including employer PRSI) for a person exiting the Live Register to commence full-time employment.
It is proposed that the new incentive will be payable, on a monthly in arrears basis, over a two-year period.
"This is a scheme that will be straightforward to administer and will encourage the recruitment of jobseekers who have been on the Live Register for 12 months or more," Minister Burton said.
It is expected that the new scheme will be launched at the end of June 2013. In the interim, the existing employer incentive schemes will remain in place.
In addition to the above, Minister Burton announced 10,000 additional activation places in the Budget on schemes such as Community Employment, JobBridge and Tús to help people return to work, training or education. In all, the Department will spend more than €1 billion on activation schemes and related supports this year, providing places for 85,000 people.
Minister Burton, in conjunction with the Minister for Children and Youth Affairs, Frances Fitzgerald T.D., also secured funding for 6,000 additional after-school childcare places this year targeted at primary school children whose parents have taken up employment opportunities. These places are intended to assist low-income parents to avail of employment opportunities.
The Department is also continuing the rollout of Intreo offices and intensifying and improving its engagement with jobseekers.