Labour Market – Measures to Reduce the Impact of Negative Structural Trends

The objectives of the reforms and investments under the component "Labour market – measures to reduce the impact of negative structural trends" are to strengthen labour market resilience, increase labour market participation, and ensure the sustainability of the pension system and the adequacy of pensions.

Structural measures to strengthen the resilience of the labour market – reform

The objective of the reform is to increase the resilience of the labour market by ensuring, in particular, its adaptation to demographic trends. The reform will ensure:

• The entry into force of the act establishing a permanent crisis short-time work scheme for businesses in difficulties or seriously threatened with severe difficulties caused by exceptional occurrences beyond their control, building on the experience acquired during the covid-19 crisis, and during the energy crisis in 2022. The act shall include education and training obligations during part-time work;
• The entry into force of legislative changes in the field of unemployment benefit. The provisions in the Labour Market Regulation Act on unemployment benefits will be amended with the aim of increasing the employment rate of older people and preventing early exit from the labour market. Work shall build on the OECD’s analysis of the pension
  and disability insurance system in Slovenia;
• The entry into force of amendments to the pension legislation to ensure the long-term sustainability and adequacy of the pension system. The reform will take into account the existing expenditure trends, pension conditions, indexation, contributions, links between payments and receipts, and the adequacy and transparency of pension and disability insurance and will include specific legislative measures to ensure the adequacy of pensions and the fiscal sustainability of the pension system in order to significantly reduce risks stemming from age-related expenditure from the current high-risk category;
• A review of the active employment policy action plan and the catalogue of active employment policy measures with a view to ensuring the more effective implementation and achievement of the strategic objectives set in the active labour market policy guidelines for 2026–2030, in particular as regards reducing long-term unemployment and getting older and low-skilled workers back into employment more quickly.

Introducing more flexible ways of working adapted to the needs of persons with disabilities in sheltered companies and employment centres – investment

The objective of the investment is to provide the technical basis for introducing more flexible working methods.

The investment consists in projects for sheltered companies and employment centres. These shall include trainings, which shall be delivered with a focus on strengthening competences required to introduce more flexible working arrangements for persons with disabilities and for employees working with persons with disabilities. The project shall include psychosocial assistance to people with disabilities. In addition, plans for the development of new business models shall be established, with a focus on digitalisation, where relevant, and the introduction of more flexible working methods.

Faster entry of young people into the labour market – investment

The aim of the investment is to reduce youth unemployment following the COVID-19 pandemic. The investment includes financial incentives for employers to hire young people up to the age of 29 on employment contracts of indefinite duration. This will also include a commitment by the employer to provide appropriate mentors, to provide assistance and to train the young people in a specific job. During the 18-month funding period, the young people are expected to acquire the additional competences needed to practice the profession and to complement their theoretical knowledge with work experience.