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July 2, 2023
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MTSS includes the private sector in a youth work program

Parliament approved amendments to the Collective Bargaining Law

The Accountability Bill included the private sector in a job placement program for young people. The State will provide resources for each young person hired.

The article indicates that the Ministry of Labor (MTSS) creates the “I study and work for the private sector” programaimed at generating a first work experience for young people between the ages of 16 and 20 who are studying in formal or non-formal education.

A similar program has been in force since 2021, but for the public sector.

Now, the MTSS expands labor insertion. Article 274 states that the ministry will annually call companies and young people to participate in the program, establishing the requirements and conditions for its execution.

Informs that there will be aNon-refundable state fee of up to $15,000 per month for each young person hired by the companies. He work regime will be 20 hours per week.

The project adds that once the contract is completed, if the company keeps the young person in its workforce, it will benefit from the exemption from employer retirement contributions to social security corresponding to that employment contract. This exoneration will be extended until the young person reaches the age of 25. The amounts will be updated by the Average Wage Index (IMS).

The first program for the public sector was created with the objective of offering a first formal work experience to young students, between the ages of 16 and 20, who did not have previous work experience and which would allow them to perform in the labor market.

In this way, they would ensure their educational continuity while developing transversal skills linked to the world of work.

Those who wanted to enter the program had to be enrolled in formal education (high school, UTU or university) or non-formal. The non-formal courses had to have a minimum workload of 240 hours in total and belong to institutions registered and authorized by the Ministry of Education (MEC), the National Administration of Public Education (ANEP) or the National Institute of Employment and Vocational Training ( Inefop).

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