Kurti Unveils Employment Subsidy Plan for Businesses in Kosovo

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The Government of Kosovo has launched a new employment support measure aimed at boosting job opportunities for members of families benefiting from the reformed social assistance program. The initiative, announced on Friday by Prime Minister Albin Kurti, will offer significant wage subsidies to businesses that hire unemployed individuals.

“Our program targets equity and job creation while removing discriminatory criteria,” said Kurti. He explained that businesses employing eligible workers will receive 70% of the employees’ wages for the first six months. For the subsequent six months, the government will subsidize an additional 20% of the salaries paid.

Kurti emphasized that the program’s goal is to reduce dependency on social assistance by creating pathways to stable employment. “This reform not only supports employment for six months but also encourages sustainable job creation,” he stated, highlighting the government’s broader strategy, ‘Government for Families,’ which has already provided employment opportunities for over 4,100 families with no previous income.

Details of the Implementation

Hekuran Murati, Minister of Finance, Labor, and Transfers, detailed the structure and beneficiaries of the scheme. He clarified that over 1,800 families have qualified for this assistance following a rigorous selection and verification process. “These families are now required to register as job seekers with the Employment Agency, where professional advisors will facilitate employment matchmaking,” said Murati.

To support this initiative, the government has increased the capacity of employment advisors, hiring 42 professionals dedicated to matching job seekers with suitable opportunities. The wage subsidy is structured to provide a financial incentive for businesses to retain workers, thus promoting long-term employment.

World Bank Support and Broader Impact

Massimiliano Paolucci, the World Bank Director for Kosovo and North Macedonia, praised the initiative, describing it as a crucial step in strengthening the social welfare system. “Sustainable employment and quality job opportunities are vital for helping families transition out of social assistance,” Paolucci said. He emphasized that this investment is not just an economic strategy but a moral responsibility, aiding in recovery from crises such as the COVID-19 pandemic.

Jehona Rexha, Director of the Employment Agency of Kosovo, highlighted the transformative potential of this initiative. “This marks a new era of proactive engagement focused on beneficiaries, eliminating previous inequalities,” she said. Rexha underscored that the reform aims to streamline employment processes and foster economic growth through well-designed policies.

This comprehensive approach seeks to uplift the socioeconomic status of families across Kosovo, reinforcing the government’s commitment to fostering an inclusive and thriving labor market.

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