The Government of the Russian Federation has approved a Resolution amending the subsidy program for recruitment of unemployed citizens.
Starting from October 5, 2021, organizations can receive a subsidy for the employment of citizens who, on August 1, 2021, were registered with the employment service bodies as unemployed ones (previously, this period was until January 1 of the current year).
The document also expands the list of citizens for whose employment an employer can receive an appropriate subsidy regardless of the date of registration of such citizens in employment centres. The specified list includes:
- disabled people
- persons released from prison
- single parents with minor children, disabled children and parents with many minor children, disabled children.
The other criteria for receiving government aid remained the same. It can also be obtained for those individuals who:
- are graduates of higher educational establishments, colleges and technical schools in 2020;
- were unemployed, as of the date of referral by the employment service bodies for employment to the employer;
- had no job, were not registered as an individual entrepreneur and did not apply the special tax regime “Tax on Earned Income”, as of the date of conclusion of the employment contract with a potential employer.
Please be reminded that the recruitment subsidy program came into force in March 2020 in order to help citizens who lost their jobs opportunities owing to the occurrence of coronavirus infection. In this case, the employer hires an employee registered at the employment centre, and the state pays subsidies as compensation for salary costs.
State support can be obtained if the company:
- has a state registration made before January 1, 2021;
- has no arrears in the payment of taxes, fees, fines, penalties and payment of salary to employees;
- is not at the stage of liquidation, bankruptcy or in the register of disqualified persons;
- is not a legal entity in whose authorized capital the participation share of foreign legal entities in total exceeds 50%
- hires the relevant citizens on a full-time basis and pays them a salary not lower than the federal minimum wage.
In order to receive a subsidy, organizations have to:
- Send a list of vacancies to the employment centre using personal account on the website “Employment in Russia”;
- Obtain a list of suitable candidates, select potential employees from them and conclude employment contracts with them.
- Send an application for a subsidy to the Unified Information System “Sotsstrakh”. In the application, it is necessary to specify the information, the composition of which is determined by clause 17 of the Resolution No. 362 of the Government of the Russian Federation dated March 13, 2021. The deadline for submitting an application is not earlier than one month after the date of the employee’s employment in the company and not later than December 15 of the current year.
After sending the application, the Social Insurance Fund (SIF) checks the employer and employed citizens in terms of the inclusion of information about them in the application.
In case of a positive result of the check, the SIF bodies calculate the subsidy and provide it to the employer within 10 working days from the date of sending the application. At the same time, the subsidy is provided upon expiration of the 1st, 3rd and 6th months of work of an employed citizen. Therefore, the check will be carried out for each of the specified periods. For one employed citizen, the company can receive about 50,000 rubles.
The company has to return the received subsidy in the following cases:
- if in the first six months of work the employee received sickness benefits from the SIF. In this case, the refund amount will not exceed the amount of the subsidy received during that period.
- if by December 15, 2021, less than 80% of employed citizens remain in the staffing list. However, unemployed individuals dismissed at their own request can be not taken into account in this proportion.
Please contact Acsour’s experts on issues concerning the obtaining a subsidy.