2007 Annual Report

ESS funding 

The financing of activities performed by the ESS is defined by Article 60 of the Act. Sources of financing for unemployment benefits, unemployment assistance and other transfers to unemployed persons are ensured partly from contributions by employees and employers from paid wages, and partly from other national budget sources.

In comparison with previous years the contribution rate for employment has remained unchanged, and for employees it is set at 0.14 % and for employers at 0.06 %. According to data from the Public Payments Administration, funds from this source for 2007 amounted to 26,785,426.46 euros, representing just 25.9 % of the funds needed to ensure the rights deriving from unemployment insurance.

The funds for financing measures, activities and sub-activities provided by the ESS are defined on the basis of contractual relations with the Ministry of Labour, Family and Social Affairs.

For the protection of unemployed persons and implementation of active employment policy programmes and grants, in line with the accounting principle of cash flow from budget funds for 2007 and from the European Social Fund (ESF), financing in the amount of 238,847,336 euros was created. In accordance with the aforementioned regulation, spending of funds in the amount of 239,406,106 euros was recorded.

Funds amounting to 28,382,497 euros were used to finance professional tasks and the functioning of the ESS. The major portion of funds used represents staff costs, which amounted to 21,365,273 euros for a monthly average of 873 employees (based on hours worked, including overtime). Material costs, which include tax on salaries paid, amounted to 7,017,224 euros.

Structure of ESS expenditure by basic purpose in 2007

Basic strategic objectives of the labour market

  • Increasing employment and reducing unemployment
  • Reducing the difference in unemployment rates between regions
  • Preventing the transition to long-term unemployment
  • Reducing structural unemployment
  • Increasing the flexibility and competitiveness of employees
  • Promoting new employment
  • Strengthening social inclusion.

Long-term objectives of the ESS

  • Through efficient processing, reduce the time unemployed persons are registered at the ESS
  • By developing the quality of services, achieve comparability with employment services in the EU
  • Cooperate proactively with ESS partners to achieve key goals for labour market development
  • By developing modern forms of work, free up resources for work with the disadvantaged
  • Timely and appropriate granting of material rights to users

Basic activities of the ESS

  • Providing employment and employment guidance
  • Providing career orientation
  • Providing unemployment insurance
  • Providing active employment policy programmes and measures
  • Issuing work and employment permits to foreigners
  • Producing analytical, developmental and other professional material in the field of the ESS activities
  • Providing information on the labour market and information of a public nature

 

Modernisation process

The ESS is adapting the substance and organisation of its activities to an increasingly dynamic labour market, while on the other hand in order to secure the more efficient performance of business procedures and services for clients, it is introducing new information and communications technology.

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