O1

Erasmus+ Funded by the Erasmus+ Programme of the

Good Practices for Employment in Europe*

ERASMUS+ PROGRAMME CAREER PLANNING FOR TEENAGERS

KA2 STRATEGIC PARTNE RSHIP COOPERATION FO R INNOVATION AND THE EXCHANGE OF GOOD PRACTICES

STRATEGIC PARTNERSHIP FOR SCHOOL EDUCATION | [Project No: 2014-1-TR01-KA201-013273]

*This document reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein Good Practices for Employment in Europe

Career Planning for Teenagers T

PROJECT PARTNERS

ŞAIR ABAY KONANBAY ANADOLU LISESI, SULTANGAZI

INSTITUTO POLITÉCNICO DE SANTARÉM, SANTARÉM PORTUGAL

SPOJENÁ ŠKOLA,

COLEGIUL NATIONAL "VASILE ALECSANDRI", BACĂU ROMANIA

CONTENTS

Introduction ...... 5 EURES - Facilitating Job Mobility In Europe ...... 6 EURES Network ...... 6 tasks of eures advisers ...... 8 the european job mobility portal...... 8 how to find a job ...... 10 eures helps the young ...... 12 your first EURES job ...... 13 Living & Working Conditions In Slovakia ...... 17 quick facts ...... 17 economy ...... 18 industry ...... 18 energy ...... 19 transport ...... 19 registration procedures and residence permits ...... 19 employment contract ...... 19 finding a job ...... 20 labour market situation ...... 21 labour market shortages ...... 21 labour market surpluses ...... 22 minimum and average wage...... 22 personal income tax ...... 23 social security ...... 23 sickness benefits ...... 23 unemployment benefit ...... 24 health insurance ...... 24 tourism ...... 24 cost of living ...... 25 Living & Working Conditions In Portugal ...... 26 quick facts ...... 26 economy ...... 27 industry ...... 29 energy ...... 30 agriculture ...... 32 fisheries ...... 32 services ...... 33 registration procedures and residence permits ...... 33 employment Contract ...... 33 finding a job ...... 34 labour market situation ...... 35 registration procedures and residence permits ...... 35 labor market shortages ...... 36 minimum and average wage ...... 36 personal income tax ...... 36 social security ...... 36 sickness benefits ...... 37 unemployment benefit ...... 37 entitlement period ...... 38 benefit amounts ...... 39 health Insurance ...... 39 cost of living ...... 40 Living & Working Conditions In Turkey ...... 41 quick facts ...... 41 economy ...... 43 industry ...... 45 energy ...... 45 agriculture ...... 47

fisheries ...... 48 services ...... 48 employment contract ...... 49 finding a job ...... 50 labor market situation ...... 51 registration procedures and residence permit ...... 51 labor market shortages ...... 52 minimum and average wage ...... 52 personal income tax ...... 52 social security ...... 53 sickness benefits ...... 53 entitlement to time off ...... 54 unemployment benefits ...... 54 entitlement periods ...... 55 benefit amounts ...... 56 health insurance ...... 57 cost of living ...... 57 Living & Working Conditions In Romania ...... 59 quick facts ...... 59 economy ...... 60 industry ...... 63 energy ...... 64 agriculture ...... 65 fisheries ...... 65 services ...... 66 registration procedures and residence permits ...... 67 employment contract ...... 67 finding a job ...... 67 minimum and average wage ...... 68 taxes ...... 68 benefits and benefit amounts ...... 69 cost of living ...... 70

G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S +

Introduction

This book corresponds to the intellectual output resulting from the project "CAREER PLANNING FOR TEENAGERS" under the European Programme, ERASMUS+, key action 2 “Cooperation for innovation and the exchange of good practices”. This work intend to be a guideline book for the beneficiary to inspire their understanding of Europe’s employment policies and methods for the young people. In the first part, based on a document developed in cooperation with EURES Slovakia and specialist in this area Mgr. Jana Maňková, EURES Adviser, appears EURES, a cooperation network designed to facilitate the free movement of workers within the EU 28 countries plus Switzerland, , Liechtenstein and Norway.

The purpose of EURES is to provide information, advice and recruitment/placement (job- matching) services for the benefit of workers and employers as well as any citizen wishing to benefit from the principle of the free movement of persons.

The second part presents the conditions of life and work of each of the four partner countries in the project, namely: Slovakia, Turkey, Romania and Portugal. It made a social and economic characterization and addressed the reality of the labor market in each country. Different types of employment contracts, rules of social security, taxation, wages, health insurance and support mechanisms in the search for employment are some of the covered topics.

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1 PARTE EURES - Facilitating Job Mobility In Europe

Developed in collaboration with EURES Slovakia and specialist in this area Mgr. Jana Maňková, EURES Adviser, Office of Labour, Social Affairs and Family, Slovenská 87, 080 01 Prešov, Slovakia, +421 51 2440 234, [email protected]

EURES Network

Set up in 1993, EURES is a co-operation network between the and the Public Employment Services of the EEA Member States (The EU countries plus Norway, Iceland and Liechtenstein) and other partner organisations. Switzerland also takes part in EURES co-operation. The joint resources of the EURES member and partner organisations provide a solid basis for the EURES network to offer high quality services for both workers and employers. EURES is a cooperation network designed to facilitate the free movement of workers within the EU 28 countries plus Switzerland, Iceland, Liechtenstein and Norway. The network is composed of: the European Coordination Office (ECO), the National Coordination Offices (NCOs), EURES Partners and the Associated EURES Partners. Partners in the network may include Public Employment Services (PES), Private employment services (PRES), trade unions, employers' organisations and other relevant actors in the labour market. The partners provide information, placement and recruitment services to employers and jobseekers whereas the European and National Coordination Offices oversee the organisation of the activities at European and national level respectively. In practice EURES provides its services through the portal (www.eures.europa.eu) and through a human network of around 1000 EURES advisers that are in daily contact with jobseekers and employers across Europe. The purpose of EURES is to provide information, advice and recruitment/placement (job- matching) services for the benefit of workers and employers as well as any citizen wishing to benefit from the principle of the free movement of persons. EURES has a particularly important role to play in cross-border regions, areas in which there are significant levels of cross-border commuting. The more than 1.000 000 people who live in one EU country and work in another have to cope with different national practices and legal systems. They may come across administrative, legal or fiscal obstacles to mobility on a daily basis. EURES Advisers in these areas provide specific advice and guidance on the rights and obligations of workers living in one country and working in another. There are currently 12 EURES cross-border partnerships, spread geographically throughout Europe and involving 19 countries. Aiming to meet the need for information and

6 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + coordination connected with labour mobility in the border regions, these partnerships bring together public employment and vocational training services, employers and trades union organisations, local authorities and other institutions dealing with employment and vocational training. EURES cross-border partnerships serve as valuable points of contact among employment administrations, both regional and national, and the social partners. They are also an important means of monitoring these cross-border employment areas, which are a key element in the development of a genuine European labour market.

Crossborder regions map

1. EUREGIO Maas-Rhein-Waal (BE-DE-NL) 7. Øresund (Copenhagen-Malmö) 2. Galicia/Região Norte (ES-PT) 8. Bayern - Tschechien (DE-CZ) 3. Northern Ireland/Ireland (IE-UK) 9. Euradria (IT-SI-HR) 4. Oberrhein (DE-FR-CH) 10. EURES T-Beskydy (CZ-PL-SK) 5. Great Region (BE-FR-DE-LUX) 11. EURES-TriRegio (CZ-DE-PL) 6. Scheldemond (BE-NL) 12. (HU-AT-DE)

7 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + tasks of eures advisers

The driving force of the EURES are the EURES advisers. They are consultants trained by the European Commission and are experts in European labour markets . This network of consultants has a database of job vacancies in Europe as well as the information database of living and working conditions in the EEA countries. EURES advisers provide three main services:  information  advice  recruitment/placement (job-matching) services to jobseekers and employers

the european job mobility portal

The EURES Job Mobility Portal (www.eures.europa.eu) is the number one source of information on jobs and learning opportunities in Europe.

There are four sections: 1. Jobseekers 2. Employers 3. Living&working conditions 4. Skills&careers

In the „Living&working“ section you can find practical information and facts about labour market trends in each country in Europe.

Under the „Skills&careers“ you can discover ways to improve your career prospects by acquiring new skills and learn about education and training opportunities throughout Europe. The European Commission runs a wide variety of programmes, which provide education and training opportunities throughout Europe to both students and teachers.

The information under "Search for Learning Opportunities" comes from PLOTEUS, the Portal on Learning Opportunities Throughout Europe, that was set up by the European Commission. Selection and updating is provided by the Euroguidance network. The purpose of PLOTEUS, just like that of EURES, is to put into effect the right to freedom of movement for European citizens by providing the necessary information. In addition to the Learning Opportunities that are available here in EURES, the PLOTEUS website contains information on national education and training systems, European exchange programmes and relevant contacts for further information.

Living and studying in a foreign country is the best way to gain in-depth knowledge of another culture's customs, people, and language. In addition, living and studying or working in another country can develop important transnational competences that may be of interest to future employers. Students who return from a programme of study abroad often see it as an experience which matured them personally and intellectually. They appreciate being exposed to new ways of thinking and living, which encourages personal development and self-reliance. Study abroad can do more than encourage academic enrichment and personal development; it also can enhance employment prospects. Employers are increasingly seeking people who have experience of other countries, since they are likely to possess, apart from language skills, cross-cultural communication skills, an understanding

8 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + of and familiarity with local customs and cultural contexts, flexibility, resilience, and the ability to adapt to new circumstances and deal constructively with different points of view.

The "Jobseekers" section provides specific information and tools targeted at jobseekers such as practical information on finding a job and creating your CV online. You have to register and create your EURES account in order to be able to e.g. create your CV or skills passport.

Once you are logged in you will be able to access your personal tools at "Jobseekers" section. To create a new CV online click on „my CV“, there simply choose your prefered language and fill in the various sections of your CV, such as work experience, education and skills. You can also make your CV more attractive by uploading a personal presentation of yourself. Make sure you complete the "desired employment" section where you can enter your ideal jobs, locations and conditions. Then publish your CV on the portal where it will be accessible for employers for the period of 12 weeks. When the time expires you will have the option to extend for additional periods of 12 weeks. On the "My jobs" section you will be able to see all the enquiries sent to you by employers. You will also receive these by e-mail. Make sure you respond to these enquiries within the specified time. Within the "Jobseekers" section you can also create your job search profiles which will allow you to be notified about new job vacancies that match your search criteria.

You also have the option of downloading your CV from EUROPASS ( www.europass.cedefop.europa.eu). EUROPASS helps citizens to communicate their skills and qualifications effectively when looking for a job or training and also helps employers to understand the skills and qualifications of the workforce.

Five documents can be used to make your skills and qualifications clearly and easily understood in Europe:

Two documents freely accessible, completed by European citizens:

 The Curriculum Vitae (CV) helps you present your skills and qualifications effectively and clearly.

 The Language Passport is a self-assessment tool for language skills and qualifications. Three documents issued by education and training authorities:

 The Europass Mobility records the knowledge and skills acquired in another European country;

 the Certificate Supplement describes the knowledge and skills acquired by holders of vocational education and training certificates;

 the Diploma Supplement describes the knowledge and skills acquired by holders of higher education degrees.

"Skills passport" – a new tool on the EURES portal allows jobseekers to specify which skills they have obtained where (within a specific sector), making it easier for employers to find exactly what they are looking for. The skills passport is now available for the hospitality and tourism sectors. This tool will allow you to record all the skills you have acquired during your

9 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + education and practical work experience in a specific sector. So just the hospitality sector, thereby helping employers from this sector to find you more easily. Go the the section "Jobseekers" – "My skills passports" and here you will see an option to create a new skills passport for one of the available sectors (hospitality or tourism). It will remain published for 12 weeks just like you CV. You have the option to get your skills endorsed to give them more weight and make your profile more convincing. There are two endorsement paths: by document (diploma, certificate or reccommendation letter) or by an employer.

You can watch the tutorial videos for jobseekers on how to use the European Job Mobility Portal on EURES EUROPE youtube channel.

how to find a job

European employers can use different services and communication tools to post their job vacancies. The list below gives you an overview of the sources of information at your disposal at European level. Public employment services and the EURES job mobility portal Visit your local or regional employment office for advice. They may have a EURES Adviser who can provide you with further personalised assistance. The EURES Advisers can give advice on job opportunities in the European labour market, refer you to potential employers and provide detailed information on living and working abroad. Attend employer presentations, skills workshops and job fairs organised by EURES in your country. Details of events at European level can be consulted through the "Events Calendar" on the homepage of the EURES portal. See also www.europeanjobdays.eu. Search for job vacancies through the "Search for a job" facility on the EURES portal. EURES vacancies expressly open to transnational recruitment are flagged "European". The "EURES Search for a job" facility has a user-friendly search interface. Jobseekers may select, for example, a country, region, profession, type of contract, or combine several criteria for finding a job. It is available in the 25 EEA languages. Private employment agencies and recruitment agencies In many Member States, there are private employment agencies specifically geared towards finding people temporary work abroad. Likewise, private recruitment agencies in your country or abroad can offer a wide range of information. They will guide you through the application procedures and help you understand the legal requirements connected to relocating. Before using them, find out if they are duly registered and if they charge for their services. Also check the nature of the employment contracts they offer. Other information sources Search for relevant events or other job vacancies for graduates on specialised websites or through online search engines (such as Google and Yahoo, for example), national newspapers, specialist publications (e.g. career guide magazines) and also through your university career centre or students association/union. Major public

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libraries usually receive foreign newspapers and publications on a regular basis. You can also consult the link "Information and jobs for graduates" within "Related Links" where you can find many useful web addresses in the EEA.

Spending some time in the country of your choice on a traineeship or work placement is an ideal way of getting to know the country and provides the opportunity to job search on the spot. Many large companies organise such work placements. Look for traineeship opportunities in the link "Information and jobs for graduates". So far you have read some advice on how to find a career opportunity as employee. Have you considered the possibility of initiating a start-up business in another Member State? Do you know about the new European Commission pilot project "ERASMUS for young entrepreneurs"? This mobility scheme is aimed at facilitating training (1-6 months stay abroad), networking and the exchange of experiences among young entrepreneurs by means of traineeships in small and medium-sized enterprises in another EU Member State. More information on http://www.erasmus-entrepreneurs.eu/.

Statistics EURES portal - 01/04/2016 1,199,632 vacancies (2,006,230 posts)

Country Vacancies Posts Austria 36,362 45,878 Belgium 111,359 136,255 3,550 14,891 Switzerland 4,009 5,869 584 1,519 Czech Republic 46,337 104,774 Germany 501,234 896,544 107 251 Estonia 1,985 4,306 806 2,208 Spain 804 2,220 Finland 16,115 40,577 France 83,338 93,701 Croatia 25 193 Hungary 5,335 15,043 Ireland 107 687 Iceland 70 155 Italy 9,453 14,509 Liechtenstein 33 43 Lithuania 226 489 Luxembourg 1,283 1,772 Latvia 7 65 Malta 315 546 Netherlands 29,403 36,109 Norway 10,338 17,871 Poland 26,000 72,359 Portugal 3,700 5,804 Romania 7,948 20,412

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Sweden 42,940 131,440 Slovenia 1,497 2603 Slovakia 2,655 9,340 United Kingdom 198,123 217,980

Jobseekers per desired occupation: Waiter/waitress, language teacher, hotel receptionist, administrative assistant, clerk (general), translator, secretary, architect, IT project manager, waiter/waitress (café).

Jobseekers per country: Italy, Spain, Romania, France, Croatia, Poland, Portugal, Germany, Greece, Serbia.

eures helps the young

Employment rate in the EU-28 countries accounted for 69,2 % in 2014. Employment issues are integrated into the Europe 2020 strategy as one of five headline targets, namely that 75 % of the 20–64 year-olds in the EU-28 should be employed by 2020. The focus on young people was reinforced with the adoption in 2010 of the Europe 2020 strategy for smart, sustainable and inclusive growth which includes a number of concrete initiatives to support them in getting jobs and dealing with related challenges during this crisis. Quality education and training, successful labour market integration and more mobility of young people are key to unleashing all young people's potential and achieving the Europe 2020 objectives. Youth on the Move presents a framework of policy priorities for action at national and EU level to reduce youth unemployment by facilitating the transition from school to work and reducing labour market segmentation. Particular focus is put on the role of public employment services, promoting the Youth Guarantee scheme to ensure all young people are in a job, in education or in activation, creating a European Vacancy Monitor and supporting young entrepreneurs. Unemployment levels and rates move in a cyclical manner, largely related to the general business cycle. However, other factors such as labour market policies and demographic changes may also influence the short and long-term development of unemployment. The financial and economic crisis had a considerable impact on the EU’s labour markets and unemployment rates remain in 2014 persistently over 10 % in many regions. Even in those regions characterised by lower unemployment rates, some job vacancies remain unfilled: this may, at least in part, be due to unemployed applicants lacking the required skills or experience for certain posts, or could reflect a lack of mobility, with job vacancies being available in one region, while the unemployed look for work in another. Youth unemployment rates are generally much higher, even double or more than double, than unemployment rates for all ages. As for the rate for the total , the youth unemployment rate in the EU-28 sharply declined between 2005 and 2007, reaching its minimum value (15.2 %) in the first quarter 2008. The economic crisis, however, severely hit the young. From the second quarter of 2008, the youth unemployment rate has taken an upward trend peaking in 23.8 % in the first quarter 2013, before receding to 22.2 % at the end of 2014. High youth unemployment rates do reflect the difficulties faced by young people in finding jobs. The youth unemployment rate in the EU-28 was more than double the overall unemployment rate in 2014. At 22.2 %,

12 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + more than one out of every five young persons in the labour force was not employed, but looking and available for a job. In the euro area, the youth unemployment rate was even higher at 23.8 %. The unemployment rate among young persons was higher than the rate for those aged between 25 and 74 in all Member States. In Spain (53.2 %), Greece (52.4 %), Croatia (45.5 %), Italy (42.7 %), Cyprus (35.9 %) and Portugal (34.7 %) youth unemployment rates were particularly high. Germany (7.7 %) was the only Member State with a youth unemployment rate below 10 %. The next two charts show the youth unemployment rate and the percentage of the active population between 15 and 24 years by country in Europe.

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24 by countries (2014) bycountries 24

-

% of active population aged 15 aged population % ofactive

14 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + your first EURES job

Your first EURES job (www.yourfirsteuresjob.eu) is a European Union job mobility scheme to help young people find a job, traineeship or apprenticeship opportunity in another EU country, Norway or Iceland and to help employers find qualified workforce. It aims to match hard to fill vacancies with young jobseekers and people looking for job based trainings across Europe. Through Your first EURES job you can get financial support for an interview trip abroad, as well as for training (e.g. language courses), recognition of qualifications and relocation expenses. In particular the following services are offered:

 Pre-placement support: to employers to identify their real needs and define their job vacancy, to jobseekers to register on the platform.

 Recruitment and matching services;

 Financial benefits: for jobseekers to cover their travel expenses, enabling them to attend job interviews and settle in other EU countries to take up employment; for SMEs if they provide an integration programme to their newly hired young workers

 Language courses or other forms of training for pre-selected jobseekers

 Support for the recognition of qualifications of pre-selected jobseekers

 Mentoring support for trainees and apprentices.

Your first EURES job is opened to candidates with different levels of education and/or work experience. To participate in the initiative and benefit from our recruitment and support services, you must comply with the following requirements: Jobseekers:

 Nationality of a EU28 country + Iceland and Norway

 Age 18-35

 Legally resident in a EU28 country + Iceland and Norway

 Seeking a job, traineeship or apprenticeship in another EU28 country + Iceland and Norway Employers:

 Large-sized organization or SME located in a EU28 country + Iceland and Norway Work placement:

 Minimum 6-months contract duration, full- or part-time work placement (no less than 50% full-time equivalent)

 Be located in a EU28 country + Iceland and Norway other than the country of residence of the young jobseeker,

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 Comply with national labour and social protection laws and ensure adequate protection and benefits

 Ensure pay and a written contract

 For apprenticeship and traineeship: provide on-the-job skill learning and training, re-settlement support and issue a certificate/declaration of acquired skills and competences at the end of the assignment.

The initiative, co-funded by the European Union, involve 9 EU Ministries of Labour (Croatia, Cyprus, Czech Republic, France, Germany, Ireland, Italy, Portugal, Spain) together with the Metropolitan City of Rome and a large network of associated partners. The lead applicant is the Italian Ministry of Labour, General Directorate for active employment policies. Current openings by sector (NACE)

NACE Jobs Apprenticeships Traineeships

A - Agriculture, forestry and fishing 8 - -

C - Manufacturing 40 3 -

F - Construction 2 - 3

G - Wholesale and retail trade; repair of motor 10 - - vehicles and motorcycles H - Transporting and storage 336 - -

I - Accommodation and food service activities 143 - 10

J - Information and communication 210 - 3

K - Financial and insurance activities 120 - -

L - Real estate activities 2 - -

M - Professional, scientific and technical activities 46 1 -

N - Administrative and support service activities 452 - 17

P - Education 5 - 9

Q - Human helth and social work activities 894 5 -

R - Arts, entertainment and recreation 2 - 2

S - Other services activities 103 - -

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2 Living & Working Conditions In Slovakia PARTE

quick facts

The Slovak Republic is a country in . The Slovak climate lies between the temperate and continental climate zones with relatively warm summers and cold, cloudy and humid winters. The weather differs from the mountainous North to the plain South. It is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. Slovakia's territory spans about 49,000 square kilometres and is mostly mountainous. The population is over 5 million and comprises mostly ethnic . The capital and largest city is Bratislava. The official language is Slovak, a member of the Slavic language family. Slovakia became an independent state on 1 January 1993 after the peaceful dissolution of Czechoslovakia. The country joined the European Union in 2004 and the Eurozone in 2009. Slovakia is also a member of the Schengen Area, NATO, the United Nations, the OECD and the WTO. Slovakia is a parliamentary democratic republic with a multi-party system. As for administrative division, Slovakia is subdivided into 8 self-governing regions, each of which is named after its principal city. The regions are subdivided into many districts (currently 79 districts).

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economy

The Slovak economy is a developed, high-income economy, with the GDP per capita equaling to 76% of the average of the European Union in 2014 (https://en.wikipedia.org/wiki/Slovakia - cite_note-rich-67). The country used to be called the "“ before the recent global economic crisis. Slovakia successfully transformed from a centrally planned economy to a market-driven economy. Major privatizations are nearly complete, the banking sector is almost completely in private hands, and foreign investment has risen. Before the economic crisis of 2007-2008, Slovakia had experienced high and sustained economic growth. Slovakia was the fastest growing economy in the EU. Slovakia is an attractive country for foreign investors mainly because of its low wages, low tax rates and well educated labour force.

industry

The main industry sectors are car manufacturing and electrical engineering. Since 2007, Slovakia has been the world's largest producer of cars per capita, with a total of 571,071 cars manufactured in the country in 2007 alone. There are currently three automobile assembly plants:Volkswagen's in Bratislava, PSA Peugeot Citroën's in and Kia Motors' Žilina Plant. In 2018, Jaguar Land Rover is set to open the country's fourth automobile assembly plant in . From electrical engineering companies, Foxconn has a factory at Nitra for LCD TV manufacturing, Samsung at Galanta for computer monitors and television sets manufacturing. ESET is an IT security company from Bratislava with more than 500 employees worldwide at present. Other industry sectors include the production of: metal and metal products; food and beverages; electricity, gas, coke, oil, nuclear fuel; chemicals and manmade fibers; machinery; paper and printing; earthenware and ceramics; textiles; rubber products.

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Nuclear energy accounts for 53.8% of total electricity production in Slovakia, followed by 18.1% of thermal power energy, 15.1% by hydro power energy, 2% by solar energy, 9.6% by other sources and the rest 1.4% is imported. The two nuclear power-plants in Slovakia are in Jaslovské Bohunice and Mochovce, each of them containing two operating reactors.

transport

Transport in Slovakia is possible by rail, road, air or rivers. Slovakia is a country with a well- developed rail network and a highway system. Main international airport is in Bratislava, the second one in Košice in the east of the country. Most important waterway is the river used both by passenger, cargo and freight ships. The is one of the two international river ports in Slovakia. The port connects Bratislava to international boat traffic, especially the interconnection from the North Sea to the .

registration procedures and residence permits

Citizens from an EU/EEA country are not required to have any permit and no restrictions are applied to them when they enter the labour market of the Slovak Republic.

 You do not need a work permit. If you stay in Slovakia for less than 3 months, all you need is a valid identity card or passport. If an EU national intends to stay in Slovakia for longer than 3 months, s/he is required to declare the start and place of residence to the local police department within 10 working days from the date of entry to the Slovak Republic. You have to submit valid travel document (ID card or passport), 2 photos (3 cm x 3,5 cm) and employment contract (if you work). You receive a registration certificate. Similarly, the relatives of citizens of EU/EEC member states are also entitled to have their permanent residence in Slovakia.

employment contract

Employment is established in the form of a written employment contract concluded between the employer and the employee based on the Labour Code. A valid employment contract must be concluded no later than the start of employment (first day of work). The employer is required to provide a written copy of the contract to the employee. The employment contract serves as a proof that both parties agreed upon the following main characteristics of the job:

 Job description  Place of work (the location and the organisational unit or otherwise specified premises)  Date of commencement of employment

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 Wage conditions, unless agreed in a collective agreement In the employment contract the employer must also state other terms and conditions, including pay days, working time, length of holidays and the period for giving notice. The contract may also specify other terms and conditions that the parties wish to include.

finding a job

When choosing an occupation, it is recommended that you consider what kind of job you woul like to have and what kind of jobs are realistically available on the labour market, taking all your qualifications and practical skills into account. In many cases, your success will depend on a variety of formal and informal recommendations that can be provided by your former employers and, possibly, by your relatives and friends. After considering all of these factors, you should choose your job search strategy. Your options are as follows: searching for job opportunities online – using this strategy you can visit websites of government agencies or private portals posting jobs both in Slovakia and abroad. On some of these websites you may register your curriculum vitae (CV) or create an individual profile showing your potential for the labour market

 searching through job advertisements in print media – daily and weekly newspapers, various regional newspapers and also magazines advertising a range of jobs in various branches,  contacting Offices for Labour, Social Affairs and the Family – these offices provide ongoing updates of job opportunities in their particular regions, and each one also has a EURES contact person or EURES adviser who can help you find a job abroad if you are unemployed  contacting employment agencies – bear in mind that they may charge for their services,  one of the best ways to find work is to send an open aplication, which allows direct contact with an employer. If you come across a suitable offer, you should respond as quickly as possible and send in your CV and cover letter to the contact stated in the job offer. The useful websites where to look for a job in Slovakia: www.istp.sk www.upsvar.sk www.eures.sk www.employment.gov.sk www.profesia.sk www.kariera.sk www.trhprace.sk www.cvonline.sk www.topjobs.sk

20 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + labour market situation

In the labour market, the industrial sector has had a decisive influence on the growth of jobs. The number of those working in the services sector has also grown; the strongest growth in the market services sector was in arts, entertainment and recreation. In terms of age structure, total employment increased in all age categories, but particularly among the 35-49 age group. In relative terms, the greatest increase in employment was in the Košice and Banská Bystrica regions. Among European countries, Slovak citizens worked mostly in the Czech Republic and Austria. From a regional point of view, the highest number of persons who found work abroad were from the Prešov region. The most significant growth in the number of job vacancies was in finance and insurance, accommodation and catering services. In February 2016, economically active population rose to 2 716 553. The unemployment rate in Slovakia was 12% in February 2016. You can see the structure of the unemployed according to age in the following graph:

There are significant differences among the regions in Slovakia as regards the unemployment. As you can see on the map below, the highest unemployment rates were in the eastern part and also in the southern districts of central Slovakia. It is mainly caused due to the lack of foreign investments and job opportunities in those regions but on the other hand also by the lack of skilled workforce or low salaries.

Unemployment rate by regions (February 2016)

labour market shortages

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Future labour market needs:

 Healthcare: medical doctors, specialists in nursing, qualified nurses  Education: teachers at all types of schools  Administration: experts in accounting  Agriculture: technicians and livestock keepers  Industry: welders, cutters, metalworkers, mechanics and fitters, qualified industrial machines operators  Construction: civil engineers, plumbers and pipe fitters, electricians  Transport and storage: heavy truck, bus/tram, forklift drivers

labour market surpluses

 Unqualified workers without education  Elementary occupations: manipulation workers, industrial helpers, cleaners, assemblers, shop assistants...  Construction: masons, construction workers  Humanities graduates, sales representatives

Reasons:

 Lack of interest for jobseekers without qualification / work experience / long-term unemployed  Low interest of jobseekers in some vacancies due to relatively low salary or working conditions

minimum and average wage

Statutory minimum wage for 2016: 405 € gross/month (2,328 € gross/hour). Average monthly wage towards the end of 2015 accounted for 883 €. There are huge gaps between regions, the highest average wage is in the capital city Bratislava and Bratislavský region as such and the lowest are in the east. Gross pay Net pay Bratislavský region: 1205 € 902 € Košický region: 883 € 682 € Trnavský region: 860 € 665 € Žilinský region: 839 € 652 € Trenčiansky region: 821 € 641 € Nitriansky region: 789 € 615 € Banskobystrický region: 789 € 615 € Prešovský region: 736 € 582 €

22 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + personal income tax

Income tax rate in Slovakia is progressive, i.e. depends on the amount of income of a taxpayer:

 19 % tax rate - if tax basis up to 2 886,81€/monthly  25 % tax rate – if tax basis is higher  withheld from salary, monthly, by employer  no specific fiscal or social number needed Value added tax (VAT)

 Basic VAT rate – 20%  Reduced VAT rate – 10% – medicinal and medical products, books

social security

The obligation to contribute to social insurance is a legal obligation. The social insurance system consists of five separate insurance systems that are carried out by the Social Insurance Agency:

 sickness insurance,  pension insurance – old age and disability insurance,  accident insurance (Insurance for Industrial and Work-related Injuries),  wage-guarantee insurance  unemployment insurance.

The following deductions are made from an employee’s gross monthly wage:

 Health insurance 4 %  Sickness insurance 1.4 %  Old age benefit insurance 4 %  Disability insurance 3 %  Unemployment insurance 1 %  Total: 13.4 %

sickness benefits

An employee is entitled to a sickness benefit when temporarily unable to work or placed in quarantine following an illness or accident (both cases are treated as temporary incapacity). Income replacement These payments (“income replacement”) are financed by the employer during the first 10 calendar days of the employee’s illness. The income replacement is:

 25% of the daily assessment basis for the first three days of temporary incapacity;  55% of the daily assessment basis thereafter. Sickness benefit

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This entitlement begins on the eleventh day of temporary incapacity and ends on the day after the temporary incapacity ceases. In no case, however, can this benefit be paid for more than 52 weeks from the onset of the temporary incapacity. Employees receive a sickness benefit equal to 55% of their basic daily pay for seven days a week.

unemployment benefit

Unemployed persons can receive unemployment benefit if they have paid unemployment insurance contributions for at least two of the three years preceding their registration as jobseekers. Unemployment benefit is paid for a maximum of 6 months. Provided that all the eligibility criteria are met, the beneficiary will receive an allowance equal to 50% of the daily assessment basis. The benefit is disbursed by the Social Insurance Agency.

health insurance

Health care services are provided by public, private and non-governmental health care institutions. Initial examinations are carried out by general practitioners for adults or children. Everyone is free to choose their own doctor, who will provide primary health care and who can also provide a referral for examination or treatment by a specialist. Outside your practitioners’ working hours and at weekends you can use the emergency medical services. The charge for using them is € 2.00. If your general practitioner is already closed and an emergency medical service is not yet open, you can be admitted for treatment at the admissions unit of any hospital. Under the Health Insurance Act, employees, self- employed persons, employers and the State are required to pay health insurance contributions. Health care contributions cover the major part of health care costs, but you must pay for certain medication and medical services yourself in full. Health insurance also covers part of the cost of dental care. You are also required to register as a policyholder with a health insurance company within eight days of commencement of employment and to deregister within the same period upon termination of employment. If you are an employee your employer will do it for you. You will be issued a registration number and a health insurance policy (HIP) card for use at every visit by a doctor.

tourism

Slovakia features natural landscapes, mountains, caves, medieval castles and towns, folk architecture, spas and ski resorts. Folk tradition has rooted strongly in Slovakia and is reflected in literature, music, dance and architecture. SĽUK (Slovak folk art collective) is the largest Slovak folk art group, trying to preserve the folklore tradition. An example of wooden folk architecture in Slovakia can be seen in the well preserved village of Vlkolínec which has been the UNESCO World Heritage Site since 1993. The eastern part of Slovakia, particularly the region of Spiš, preserves the world's most remarkable folk wooden churches. Most of them are protected by Slovak law as cultural heritage, but some of them are on the UNESCO list too.

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Tatras mountains, with 29 peaks higher than 2,500 metres are the highest mountain range in the . Tatras occupy an area of 750 square kilometres , of which the greater part 600 square kilometres lies in Slovakia, the other part in Poland. They are divided into several parts. To the north, close to the Polish border, are the High Tatras which are a popular hiking and skiing destination and home to many scenic lakes and valleys as well as the highest point in Slovakia, the Gerlachovský štít at 2,655 metres and the country's highly symbolic mountain Kriváň. To the west are the Western Tatras and to the east are the Belianske Tatras, smallest by area. The Tatra mountain range is represented as one of the three hills on the coat of arms of Slovakia.

cost of living

The cost of living varies from region to region and also depends on fluctuations in the prices of food, energy and other everyday necessities. Monthly household expenses itemised by category as a percentage: housing, water, electricity, gas and other fuels 28 %, food, non-alcoholic and alcoholic beverages 30 %, telecommunications 4.7%, healthcare 3.1 %, transport 9.2 %, leisure and culture 6.6 %, hotels, cafés, restaurants 4.8 %, education 0.9 %, clothing and footwear 6.1 %. Average consumer prices of selected products in Slovakia: black bread – € 1.29, ordinary white bread roll (40 g) - € 0.06, fresh butter (125 g) – € 1.29, wheat flour (1 kg) – € 0.49, granulated sugar (1 kg) – € 1.14, milk (1 l) – € 1.15, cooking oil € 1.80, rice (1 kg) – € 1.49, potatoes (1 kg) – € 0.70, bottled beer (12 %) (0.5 l) – € 0.70, cigarettes Marlboro – € 3.40, washing powder (1 kg) – € 2.66, petrol (1 l) – € 1.20, diesel € 1.01.

25 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S +

2 Living & Working Conditions In Portugal PARTE

quick facts

Portugal, officially the Portuguese Republic, is a country on the Iberian Peninsula, in Southwestern Europe. It is bordered by the Atlantic Ocean to the West and South and by Spain to the north and east. The republic also includes the Atlantic archipelagos of the Azores and Madeira, both autonomous regions with their own regional governments. Portugal is defined as a Mediterranean climate and is one of the warmest European countries: the annual average temperature in mainland Portugal varies from 8–12 °C (46.4–53.6 °F) in the mountainous interior north to 16–19 °C (60.8–66.2 °F) in the south and on the Guadiana river basin. The Algarve, separated from the Alentejo region by mountains reaching up to 900 metres (3,000 ft) in Alto de Fóia, has a climate similar to that of the southern coastal areas of Spain or Southwest Australia. Snowfalls occur regularly in the winter in the interior North and Centre of the country in districts such as Vila Real, Bragança, Viseu and Guarda. Portugal has around 2500 to 3200 hours of sunshine a year, an average of 4–6 h in winter and 10–12 h in the summer, with higher values in the south-east and lower in the north- west. Portugal’s territory spans about 92,212 square kilometers. The population is slightly over 10 million and the capital city is Lisbon. The official language is Portuguese. The existing political system (a semi-presidential republic) was established in 1974 and Portugal joined the EU on the first January 1986. Continental Portugal is agglomerated into 18 districts, while the archipelagos of the Azores and Madeira are governed as autonomous regions.The 18 districts of mainland Portugal are: Aveiro, Beja, Braga, Bragança, Castelo Branco, Coimbra, Évora, Faro, Guarda, Leiria, Lisbon, Portalegre, Porto, Santarém, Setúbal, Viana do Castelo, Vila Real and Viseu – each district takes the name of the district capital. Within the European Union NUTS (Nomenclature of Territorial Units for Statistics) system, Portugal is divided into seven regions: the Azores, Alentejo, Algarve, Centro, Lisboa, Madeira and Norte.

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Division into Districts

Population Density

27 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + economy

The Economy of Portugal is of a mixed nature and functions in support of a high-income country. Most imports come from the European Union (EU) countries of Spain, Germany, France and the United Kingdom, while most exports also involve other EU member states. The Portuguese currency is the euro (€) and the country has been a part of the Eurozone since its inception. Portugal's central bank is the Banco de Portugal, which forms part of the European System of Central Banks, and the major stock exchange is the Euronext Lisbon, which belongs to the NYSE Euronext, the first global stock exchange. IMPORTS OF GOODS (year 2015)

EXPORTS OF GOODS (year 2015)

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The Portuguese Economy has been steady, expanding continuously since the third quarter of 2014. The economy growth has been accompanied by a continuous fall in the unemployment rate (11.9% in the second quarter of 2015, compared with 13.9% registered in the end of 2014). The Government budget deficit has also been reduced. Rates mark an inversion from the negative trends caused by the impact of the Financial Crisis of 2008 in the Portuguese Economy, that made it to shrink for three consecutives years (2011, 2012 and 2013), accompanied by a high increase of the unemployment rate (that achieved a record of 17.7% in the early 2013). UNEMPLOYMENT RATE (%)

industry

The major industries in Portugal include: oil refinery, petrochemistry and cement industries, machinery, automotive and shipbuilding industries, electrical and electronics industries, injection moulding, plastics and ceramics industries, textile, footwear and leather industries, beverages and food industries and furniture, pulp and paper, wood and cork industries. Automotive and other mechanical industries are primarily located in and around Setúbal, Porto, Lisbon, Aveiro, Braga and Mangualde. Coimbra and Oeiras have growing technological-based industries, including pharmaceuticals and software. Sines has the

29 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + largest oil refinery in the country and is a major petrochemical centre, as well as the busiest port in Portugal. Maia has one of the largest industrial parks of the country, including noted wood processing and food industries. Figueira da Foz and Setúbal are major centres of pulp and paper industry. Marinha Grande is the most reputed glass making centre of Portugal. Leiria, Oliveira de Azeméis, Vale de Cambra and Viseu, have important light industries, including injection moulding and plastics. Viana do Castelo and Setúbal are centres of ship building and repair industries. Modern non-traditional technology-based industries like aerospace, biotechnology and information technology, have been developed in several locations across the country. Alverca, Covilhã, Évora, and Ponte de Sor are the main centres of Portuguese aerospace industry, which is led by the local branch of the Brazilian Embraer and by OGMA. Since after the turn of the 21st century, many major biotechnology and information technology industries have been founded and are concentrated in the metropolitan areas of Lisbon, Porto, Braga, Coimbra and Aveiro.

GROSS VALUE OF PRODUCTION: TOTAL AND BY PRODUCT (2013)

energy

Portugal has considerable resources of wind and river power, the two most cost-effective renewable sources. Since the turn of the 21st century, there has been a trend

30 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + towards the development of a renewable resource industry and reduction of both consumption and use of fossil fuel resources. In 2006, the world's largest solar power plant at that date, the Moura Photovoltaic Power Station, began operating near Moura, in the south, while the world's first commercial wave power farm, the Aguçadoura Wave Farm, opened in the Norte region (2008). By the end of 2006, 66% of the country's electrical production was from coal and fuel power plants, while 29% were derived from hydroelectric dams, and 6% by wind energy. In 2008, renewable energy resources were producing 43% of the nation's consumption of electricity, even as hydroelectric production decreased with severe droughts. In June 2010, electricity exports had outnumbered imports. In the period between January and May 2010, 70% of the national production of energy came from renewable sources.

ELECTRICITY PRODUCTION FROM RENEWABLE SOURCES (YEAR 2014)

Portugal’s national energy transmission company, Redes Energéticas Nacionais (REN), uses sophisticated modeling to predict weather, especially wind patterns, and computer programs to calculate energy from the various renewable-energy plants. Before the solar/wind revolution, Portugal had generated electricity from hydropower plants on its rivers for decades. New programs combine wind and water: wind-driven turbines

31 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + pump water uphill at night, the most blustery period; then the water flows downhill by day, generating electricity, when consumer demand is highest. Portugal’s distribution system is also now a two-way street. Instead of just delivering electricity, it draws electricity from even the smallest generators, like rooftop solar panels. The government aggressively encouraged such contributions by setting a premium price for those who buy rooftop-generated solar electricity.

agriculture

A considerable part of continental Portugal is dedicated to agriculture, although it does not represent most of the economy. The south has developed an extensive monoculture of cereals and olive trees and the Douro Valley has developed vineyards. Olive trees, vineyards, wheat and maize are produced in vast areas. Portuguese wine and olive oil are especially praised by nationals for their quality. Portugal is a traditional wine grower, and has exported its wines since the dawn of western civilization; Port Wine, Green Wine and Madeira Wine are the leading wine exports. Portugal is also a quality producer of fruits, namely the Algarve oranges, cherries (large production in Cova da Beira and Alto Alentejo), and Oeste region's pêra rocha (a type of pear). Other exports include horticulture and floriculture products, beet sugar, sunflower oil, cork, and tobacco. fisheries

The Portuguese fishing industry is fairly large and diversified. Fishing vessels classified according to the area in which they operate, can be divided into local fishing vessels, coastal fishing vessels and long-distance fishing vessels. The local fleet is mainly composed of small traditional vessels comprising, in 2004, 87% of the total fishing fleet and accounting for 8% of the total tonnage. These vessels are usually equipped to use more than one fishing method and constitute the so-called polyvalent segment of the fleet. Their physical output is low but reasonable levels of income are attained by virtue of the high commercial value of the species they capture: octopus, black scabbardfish, conger, pouting, hake and anglerfish. Purse seine fishing is also part of the local fleet and has, on the mainland, only one target species: the sardine. This fishery represents 37% of total landings. Portugal's Exclusive Economic Zone has 1,727,408 km2. The coastal fishing fleet accounted for only 13% of vessels. These vessels operate in areas farther from the coast, and even outside Portugal's Exclusive Economic Zone. The coastal fishing fleet comprises polyvalent, purse seine and trawl fishing vessels.

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The tertiary sector has grown, producing 74.4% of the GDP and providing jobs for 65.9% of the working population. The most significant growth rates are found in the trade sector, due to the introduction of modern means of distribution, transport and telecommunications. Financial tertiary have benefited from privatisation, also gaining in terms of efficiency. Tourism has developed significantly and generates approximately 5% of the wealth produced in Portugal. In 2014, more than 9 million foreign tourists visited Portugal, representing an increase - both in the number of tourists and in tourism income - of more than 12% compared with 2013. Most of the foreign tourist came from the United Kingdom, Spain, France, Germany and Brazil. Some large Portuguese companies in the services' sector have committed themselves to internationalize their services, like the retailer Jerónimo Martins, which holds the largest supermarket chain in Poland and is also investing in Colombia. Worth to notice is also TAP Portugal, a company often used by transit passengers travelling between Europe, Africa and Latin America (mainly Brazil), which is particularly regarded by its safety record. registration procedures and residence permits

The Portuguese Immigration Service (Serviço de Estrangeiros e Fronteiras, SEF) is the administrative body responsible for issuing residence permits (Autorização de Residência). The residence card (Autorização de Residência) is necessary for anyone who moves to Portugal, or for anyone who is planning to stay for longer than six months. This includes those who work, the self-employed, students, those intending to live off savings, retired people and family members of any of the above. Applications for a residency permit should be made at the regional directorate or the Delegation of the SEF in the area of residence.

employment Contract

According to the law, an employment contract is one whereby a person agrees, upon payment, to provide his services to one or more other persons, within the latter’s organization and subject to its authority. Portuguese law requires that fixed-term, unfixed-term, intermittent, part-time and telecommuting contracts, as well as temporary-work contracts (fixed or unfixed-term) must be agreed in writing. There is no such requirement for an employment contract of indefinite duration or one with a very short duration. It is important to stress out that under the Labour Code, the following types of companies are recognized: a) Microbusiness that employs fewer than 10 employees; b) Small business that employs from 10 to 49 employees; c) Medium-sized business that employs from 50 to 249 employees; d) Large business that employs 250 or more workers.

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Under the Portuguese labour law, indefinite employment is the general rule as far as hiring is concerned (despite being advisable, in many situations, to enter into written agreements). Fixed and unfixed-term employment contracts constitute exceptions to this rule (even if this type of contracts is widely used in Portugal). Term employment contracts are generally admitted in order to satisfy temporary working needs, such as the replacement of other employees or exceptional workforce demands, or to undertake employment policies (such as the hiring of long-term unemployed or first-time jobseekers) and the launch of new companies or undertakings. Fixed-term contracts may only be renewed three times and the total duration may not exceed, in general, three years (18 months and two years are also predicted). Unfixed-term employment contracts may not exceed six years. A new labour law regarding this matter has recently entered into force (“Law No. 76/2013 of November 7) allowing, for the contracts that reach their maximum length or number of renewals until November 8 of 2015, the increase of the length of fixed-term employment contracts by an additional period of up to 12 months, providing two more renewals in addition to the three already admitted. Each renewal has a minimum length of 1/6 of the maximum duration of the fixed-term employment contracts, or its effective duration, if this one is lower. The fixed- term contracts renewed under this regime cannot be in execution after December 31 of 2016. If one of the referred limits is exceeded, the fixed term employment contract will be converted into an indefinite employment contract. Term contracts might be judicially converted into contracts of indefinite duration when, for example, the motive for the hiring is invalid or judicially unproved or it has exceeded their maximum duration or renewals. When set down in writing, the contract must include the following information:  Identification of the employer  Identification of the employee  Object of the contract, including occupation/tasks to be carried out and payment  Starting date of the contract, and date of expiry if for a fixed term  Indication of the duration with justification for this  Location of the job  Normal working times

finding a job

There are some obstacles in the way of finding a job in Portugal. There are a growing number of graduates and so competition in the job market has increased. Here are some places to look for employment:

 Industries: tourism, real estate, hotel and catering, public services, agriculture, energy and water provision, retail.  The call and contact centres and shared services centres are recent growth areas.  There are shortages in seasonal jobs in the tourism sector, the health sector (doctors with various specializations), and the information technology sector

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(engineers, analysts, programmers and software and hardware technicians).  Big companies: Accenture, British Portuguese Chamber of Commerce, Deloitte, Europages, Guianet, Hewlett Packard, Kompass, Liberty Seguros, Mafre, Martifer, Pricewaterhousecoopers, Portuguese Yellow Pages (Páginas Amarelas), Portuguese White Pages (Páginas Brancas), ReMax Portugal.  Main cities: Lisbon, Porto, Vila Novo de Gaia, Amadora, Braga, Almada, Coimbra, Funchal. labour market situation

Portugal is a developed and a high-income country. However, its income per capita figure is still one of the lowest among the EU's member states. Portugal's GDP per capita in 2014 was 78% of the EU27 average - increasing from 76% in 2012, but still not achieving the 81% of 2009 and 2010 - making it the eleventh lowest in the Union. The average wage in Portugal is 910 € per month (net), excluding self-employed individuals and the minimum wage, which is regulated by law, is €530 per month (paid 14 times per annum). After years of high increase, the unemployment in Portugal has been in a continuous falling trend since the third quarter of 2014, decreasing from a peak of 17.7% achieved in the early 2013 to a rate of 11.9% in the second quarter of 2015. However, it is high, still high compared with what was the normal average Portuguese unemployment rate in the past. In the second quarter of 2008 the unemployment rate was 7.3%, but the rate immediately rose the following period. By December 2009, unemployment had surpassed the 10% mark nationwide in the wake of worldwide events. By 2010, the rate was around 11% and in 2011 it was above 12%. The first quarter of 2013 signified a new unemployment rate record for Portugal, as it reached 17.7%— up from 17% in the previous quarter — and the Government has predicted an 18.5% unemployment rate in 2014. However, in the third quarter of the same year, it has surprisingly declined to a rate of 15.6%. From then on, the unemployment downtrend continued, declining to 13.9% in the second semester of 2014 and to 11.9% in the second quarter of 2015. registration procedures and residence permits

When applying for a residency permit the following documents must be supplied:

 Application Form  Valid passport plus one photocopy  Two identical recent, colour passport photos  Proof of income / financial independence  Proof of accommodation  A small fee Other documents may be necessary depending on the person's particular situation, for example a student will need proof of registration at a Portuguese institution and some people may be asked to provide a consular certificate. Application forms for an

35 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + authorization of residence and additional forms can be downloaded from the SEF website. The residence permit takes a few weeks to process and once issued bears the person's photograph and signature. Once the residency card has been issued it must be carried at all times for possible inspection. labor market shortages

There is a shortage of candidates in positions such as: seasonal tourism jobs; hotel and catering services; doctors of diverse specialization; information technology, particularly computer engineers; call and contact centre management. minimum and average wage

The minimum monthly wage in Portugal is 530 euros. This minimum wage was established in January 2015 and marked and increased from the previous 505 euros. The average gross wage is 1018 euros and the average net wage is 805 euros. All wages are paid 14 times a year, twelve monthly salary payments plus one month’s pay in the form of a Christmas bonus and one month for a holiday bonus. personal income tax

All income received by a resident in Portugal, such as salaries, capital gains and real estate income, including income obtained abroad, is taxed in Portugal by the Personal Income Tax (Imposto sobre o Rendimento das Pessoas Singulares, IRS). Note that for income earned abroad, there are several tax treaties that may be applicable to avoid double taxation. Regarding non-residents, only income obtained in Portugal is subject to taxation, at a general tax rate of 20 percent. However, income derived from real estate is subject to a tax rate of 10 percent. Some types of capital gains, such as those derived from transfer of shares, are, in some cases, tax exempt. Depending upon income classification, these can be subject to a definitive withholding tax rate. The tax rates for the Personal Income Tax are progressive ranging from 11.5 percent up to 46.5 percent. social security

There is a mandatory social security charge that must be paid, either by the employer or the employee. The social charge rate for an employee is 11 percent, while an amount of 23.75 percent is paid by the employing entity. For self-employed workers, this social charge rate varies depending on circumstances.

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Security benefits only apply to Portuguese nationals, qualifying European Union nationals, and those legally resident in Portugal as well as their spouses and dependents. Citizens of other countries should seek advice from their Embassy or Consulate regarding obtaining private insurance. The social security system has three basic schemes:

 A contributory scheme for employed individuals and their families (for sickness, birth/adoption, disability, retirement, unemployment, death, work-related accidents or illness);  A contributory scheme for self-employed individuals (for birth/adoption, disability, retirement, death; optional coverage for family as well as illness and work-related illness);  A non-contributory scheme for those who do not meet the minimum income requirements to belong to either of the first two schemes (for disability, retirement, death and family). All individuals registered for social security coverage are also covered for healthcare in Portugal. All healthcare benefits are administered by the Ministry of Health (Ministério de Saúde) while social security benefits (pensions, disability, maternity/paternity benefit, etc.) are administered by the Social Security Institute (Instituto da Solidariedade e da Segurança Social). unemployment benefit

Workers who are resident in Portugal and covered by the general social security scheme may claim unemployment benefits if:

 They had an employment contract and have become unemployed; or  They have suspended their employment contract on the grounds of wage arrears;  They have ceased work involuntarily (self-employed workers who are financially dependant);  They are ex-recipients of invalidity pensions who are deemed capable of working following a work capability assessment. Workers may claim Social Unemployment Benefits, a cash benefit paid to the unemployed beneficiary, to compensate them for lack of income due to involuntary unemployment. Workers may claim Partial Unemployment Benefits, a cash benefit paid to workers who claimed or were receiving Unemployment Benefits and who subsequently resume employment on a part-time contract or who start self-employed work. The Allowances for Cessation of Work and the Partial Allowances for Cessation of Work are intended for certain categories of self-employed workers (workers who are financially dependant on a sole contractee and whose service contract has been terminated against their will, as well as workers running businesses and company managers or directors who stop working and/or close the business on justifiable grounds).

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This depends on the age of the beneficiary and the number of months with registered earnings for social security purposes since the beneficiary's last period of unemployment. For beneficiaries who became unemployed after 1 April 2012 and who, on 31 March 2012, did not meet the minimum qualifying period requirement for accessing Unemployment Benefits, the entitlement period is set out in the following table:

Entitlement period Beneficiary's No. of months with No. of days age registered earnings benefit Increase received

Less than 15 150

Equal to or greater than Under 30 years 210 30 days for every 5 years 15 and less than 24 of age with registered earnings Equal to or greater than 330 24

Less than 15 180

Between 30 Equal to or greater than 30 days for every 5 years 330 and 39 years 15 and less than 24 with registered earnings in of age the last 20 years Equal to or greater than 420 24

Less than 15 210

Between 40 Equal to or greater than 45 days for every 5 years 360 and 49 years 15 and less than 24 with registered earnings in of age the last 20 years Equal to or greater than 540 24

Less than 15 270

Equal to or greater than 60 days for every 5 years 50 years of 480 15 and less than 24 with registered earnings in age or over the last 20 years Equal to or greater than 540 24

The periods differ from those above if, for the first period of unemployment occurring after 1 April 2012, the beneficiary on 31 March 2012 already had a certain entitlement period guaranteed. For self-employed workers, the entitlement period also depends on the age of the beneficiary and the number of months with registered earnings for social security purposes (at least 24 months are required); more specifically, entitlement ranges from 330 days for beneficiaries under 30 years of age, to 540 days for beneficiaries 50 years of age or older, and the respective periods of increase are added to these figures.

38 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + benefit amounts

The daily amount is equal to 65% of the reference income, calculated on the basis of a 30- day month. The amounts for ex-recipients of Invalidity Pensions who are now deemed capable of working are:

 80% of the IAS (€335.38 per month) for those living alone or 100% of the IAS (€419.22) for those living with family members.  The reference income (R/360) is calculated as follows:  The sum of all registered earnings (including holiday and Christmas bonuses) declared to the Social Security Institute for 12 of the last 14 months, counting from the month preceding the date of unemployment, divided by 360. Holiday and Christmas bonuses are only counted if they fall due within the reference period. health Insurance

Sickness protection, guaranteed by the general social security scheme, comprises the following benefits:

 Health Insurance.  Compensatory allowances for holiday pay, Christmas bonus or similar payments.These benefits are intended to offset loss of earnings due to sickness not caused by the job, and are awarded to beneficiaries who meet the respective conditions.  Health insurance is awarded on the following conditions:  Temporary incapacity, certified by the competent health services, the beneficiary being responsible for sending the respective certificate to the social security services;  Six calendar months, consecutive or separate, with registered earnings, from the date the employee became unfit to work.  It is awarded for a specific period of time:  No more than 1,095 days (three years); when this period has expired the beneficiary is covered by invalidity protection, if he/she is eligible for the invalidity pension;  Unlimited time when the disease is tuberculosis;  It is not paid in the first three days except in cases of tuberculosis, hospitalization or a disease beginning in the period when maternity benefit is paid that exceeds that period;  The amount is calculated by applying a percentage to the beneficiary’s reference pay, which varies according to the duration and nature of the illness.  Compensatory allowances for holiday pay, Christmas bonus or other payments are awarded on the following conditions:  Time off work for a disease eligible for benefit;  Provision, in an instrument of collective labour regulation or another source of labour law, that such time off prevents the payment of such benefits, either

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totally or in part.  The following are not entitled to sickness benefits:  Workers who are imprisoned (they retain only the benefit being paid on the date of detention);  Employees receiving unemployment benefits;  Employees who have taken early retirement with total suspension of activity;  People receiving invalidity or old age pensions under any social protection scheme, whether in work or not;  Employees whose incapacity is due to action by third parties for which they are owed compensation. A special social protection scheme exists for occupational diseases. cost of living

The cost of living in Portugal has risen considerably in the last decade or so and in the major cities is now around the EU average, although it’s still relatively low in rural areas. The country has a low standard of living compared with most other EU countries. In the UBS Prices & Earnings Around the Globe report (2000 edition), Lisbon ranked 47th out of the 58 most expensive cities in the world. Inflation is low at less than 3 per cent, although unemployment is relatively high, particularly in resort areas. In the last few decades, increased costs (particularly salaries) have brought the price of many goods and services in Portugal in line with most other European countries and imported goods can be particularly expensive. Among the more expensive items in Portugal are quality clothes (although fewer are needed in resort areas), cars and many consumer goods. However, many things in Portugal remain cheaper than in northern European countries, including property and rents outside the major cities and top resort areas (where they can be astronomical), fresh food, alcohol, dining out and general entertainment. It’s difficult to calculate an average cost of living in Portugal, as it depends very much on each individual’s particular circumstances and lifestyle. The actual difference in your food bill will depend on what you eat and where you lived before moving to Portugal. Food in Portugal is cheaper than in most northern European countries. €200 to €300 should feed two adults for a month, including (inexpensive) wine but excluding fillet steak, caviar and expensive imported foods. A couple owning their home can ‘survive’ on a net income of as little as €1,000 per month (many pensioners actually live on less) and most can live quite comfortably on an income of around €2,000 per month (excluding rent or mortgage payments).

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2 PARTE Living & Working Conditions In Turkey

quick facts

Turkey, officially the Republic of Turkey, is a parliamentary republic in Eurasia, mainly on the Anatolian peninsula in Western Asia, with a smaller portion on the Balkan peninsula in Southeast Europe. Turkey is a democratic, secular, unitary, constitutional republic with a diverse cultural heritage. Turkey is bordered by eight countries: and Iraq to the south; , , and the Azerbaijani exclave of Nakhchivan to the east; to the northeast; Bulgaria to the northwest; and Greece to the west. The Black Sea is to the north, the Mediterranean Sea to the south, and the Aegean Sea to the west. The Bosphorus, the Sea of Marmara, and the , which together form the Turkish Straits, divide and ; they also separate Europe and Asia. Turkey's location between Europe and Asia makes it strategically important.

Turkey has been inhabited since the Paleolithic by various ancient Anatolian civilizations, as well as Assyrians, , Thracians, Phrygians, Urartians and . After Alexander the Great's conquest, the area was Hellenized, a process which continued under the Roman Empire and its transition into the . The Seljuk Turks began migrating into the area in the 11th century, starting the process of , which was accelerated by the Seljuk victory over the Byzantines at the Battle of Manzikert in 1071. The Seljuk Sultanate of Rûm ruled Anatolia until the Mongol invasion in 1243, when it disintegrated into small Turkish beyliks. In the mid 14th century the Ottomans started uniting Anatolia and created an empire encompassing much of Southeastern Europe, Western Asia and North Africa, becoming a major power in Eurasia and Africa during the early modern period. The empire reached the peak of its power in the 16th century, especially during the reign (1520–1566) of Suleiman

41 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + the Magnificent. After the second Ottoman siege of Vienna in 1683 and the end of the Great Turkish War in 1699, the entered a long period of decline. The reforms of the 19th century, which aimed to modernize the Ottoman state, proved to be inadequate in most fields, and failed to stop the dissolution of the empire. Effectively controlled by the Three Pashas after the 1913 coup d'état, the Ottoman Empire entered World War I (1914–1918) on the side of the Central Powers and was ultimately defeated. During the war, the Ottoman government committed ethnic cleansing or genocide against its Armenian, Assyrian and citizens. Following the war, the conglomeration of territories and peoples that formerly comprised the Ottoman Empire was divided into several new states. The Turkish War of Independence (1919–1922), initiated by Mustafa Kemal Atatürk and his colleagues in Anatolia, resulted in the establishment of the modern Republic of Turkey in 1923, with Atatürk as its first president. Turkey's official language is Turkish, a Turkic language, spoken by 85% of the population. 72.5% of the population are ethnic Turks; and 27.5% are legally recognized (Armenians, Greeks, ) and unrecognized (, , , , , , etc.) ethnic minorities. Kurds are the largest minority group. The vast majority of the population is Sunni Muslim, with Alevis making up the largest religious minority. Turkey is a charter member of the UN, early member of NATO, and a founding member of the OECD, OSCE, OIC and G-20. After becoming one of the first members of the Council of Europe in 1949, Turkey became an associate member of the EEC in 1963, applied for full EEC membership in 1987, joined the EU Customs Union in 1995 and started accession negotiations with the European Union in 2005. Turkey's growing economy and diplomatic initiatives have led to its recognition as a regional power.

Population Density

42 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + economy

The is defined as an emerging market economy by the IMF. Turkey is also defined by economists and political scientists as one of the world's newly industrialized countries. Turkey has the world's 18th largest nominal GDP, and 15th largest GDP by PPP. The EU – Turkey Customs Union in 1995 led to an extensive liberalization of tariff rates, and forms one of the most important pillars of Turkey's foreign trade policy. Turkey's exports were $143.5 billion in 2011 and reached $163 billion in 2012 (main export partners in 2012: Germany 8.6%, Iraq 7.1%, Iran 6.5%, UK 5.7%,UAE 5.4%). However, larger imports which amounted to $229 billion in 2012 threatened the balance of trade (main import partners in 2012: Russia 11.3%, Germany 9%, China 9%, US 6%, Italy 5.6%). The country is among the world's leading producers of agricultural products; textiles; motor vehicles, ships and other transportation equipment; construction materials; consumer electronics and home appliances. Main industries : food processing, electronics, tourism, mining (coal, chromate, copper, boron), steel, petroleum, construction, lumber, paper. Currency: (TRY) Trade organisations: G-20 major economies, OECD, EU Customs Union, WTO, ECO, BSEC GDP by sector: agriculture: 8.1%; industry: 27.7%; services: 64.2% (2015 est.) Inflation (CPI): 6.57% (April 2016, CPI) Population below poverty line: 16.9% (2010) Labour force: 29.4 million (2015 est.) note: about 1.2 million Turks work abroad Labour force by occupation: Agriculture: 25.5%, industry: 26.2%, services: 48.4% (2010)[8] Unemployment: 9.3% (April 2016)[9] Export goods List : apparel foodstuffs, textiles, metal manufactures, transport equipment Main export partners:Germany 9.3% - United Kingdom 7.3% - Iraq 5.9% - Italy 4.8% - 4.5% - France 4.1% (2015)

10

Germany 8 UK

6 Iraq

Italy 4 USA 2 France

0

Import goods List: machinery, chemicals, semi-finished goods, fuels, transport equipment Main import partners: China 12% - Germany 10.3% - Russia 9.9% - United States 5.4% - Italy 5.1% (2015)

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UNEMPLOYMENT RATE (%)

The number of unemployed persons aged 15 years old and over realized as 2 million 824 thousand persons with 3 thousand persons increased in the period of April 2016 in Turkey compared with the same period of the previous year. The unemployment rate was 9.3% with 0.3 percentage point decrease. In the same period, non-agricultural unemployment rate was 11% with 0.6 percentage point decrease. While youth unemployment rate including persons aged 15-24 was 16% with 1 percentage point decrease, the unemployment rate for persons aged 15-64 occurred as 9.5% with 0.3 percentage point decrease. Employment rate realized as 47.2% The number of employed persons realized as 27 million 638 thousand persons with 1 million persons increase in the period of April 2016 compared with the same period of the previous year. The employment rate occurred as 47.2% with 1 percentage point increase. The number of agricultural employment decreased by 159 thousand persons, while the number of non-agricultural employment increased by 1 million 159 thousand persons in this period. According to the distribution of employment by sector; 19.4% was employed in

44 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + agriculture, 19.5% was in industry, 7.5% was in construction and 53.6% was in services. Employment in services increased by 1.5 percentage point and construction increased by 0.3 percentage point while agriculture decreased by 1.3 percentage point and industry decreased by 0.5 percentage point.

industry

The industrial sector in Turkey has been the primary focus of government policies since the early 1950s. Industrial policy until 1980 was based on an import-substitution strategy. This protectionist approach was very successful for several decades, and the sector grew at an average rate of 8.6 percent annually until the late 1970s. The first factories built in the country processed food and non-durable consumer goods , and remain among Turkey's most competitive manufactures. The next phase of development was in industries such as iron and steel, chemicals, and cement. By the end of the 1970s, capital goods and high- technology products had become the primary focus, but the rapid industrialization was taking its toll on the sector. Efficiency problems and energy shortages began to slow down growth, and prevented industry from becoming competitive in the international markets. The liberal economic policies introduced in 1980 were designed to address these issues by establishing a less protectionist, more outward-looking industrial policy. The idea was to use market signals to identify un-competitive industries, transfer their resources to those industries where Turkey enjoys a comparative advantage, and thus compete in world markets. This strategy necessitated a greater emphasis on private sector-led growth. Accordingly, policies and reforms were designed to facilitate rapid expansion of the private sector. While much progress has been made in the industrial sector since 1980, the process is still not complete. Public sector companies continue to dominate a number of critical industries, particularly those such as energy and steel whose products are crucial to private sector companies. Still, the industrial sector has achieved an average growth rate of 6 percent since 1990, and Turkey competes successfully in several areas of the international market. The country's abundance of natural resources, its geographical proximity to export markets, and the existence of a large domestic market give Turkey competitive strength in a diversity of industrial sectors. In 1999, the industrial sector in Turkey contributed to 29 percent of GDP and employed 27 percent of the labor force. More remarkably, industry accounts for 89.4 percent of Turkey's total export earnings. The key industries in Turkey are textiles, iron and steel, chemicals, cement, food processing, motor vehicles, construction, glass and ceramics, and mining.

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Turkey is strategically positioned between two continents with 65 percent of the energy resources in the east of the country, while 65 percent of the demand is in the west. Turkey has no nuclear power plants but the first is expected to come online in 2020. addition to these, the government has announced intentions for three further nuclear power plants with four reactors each, as part of 100 GWe required by 2030.

Akkuyu Nuclear Power Plant In May 2010, Russia and Turkey signed an agreement that a subsidiary of Rosatom would build, own, and operate a power plant at Akkuyu comprising four 1,200 MWe VVER1200 units. The first reactor is expected to enter service in 2018. In February 2013, Russian nuclear construction company Atomstroyexport (ASE) and Turkish construction company Özdoğu signed the site preparation contract for the proposed Akkuyu Nuclear Power Plant. The contract includes excavation work at the site. The official launch ceremony took place in April 2015, and the first unit is expected to be completed in 2023. It will be the first build–own–operate nuclear power plant.

Sinop Nuclear Power Plant On 3 May 2013, the then Turkish prime minister Recep Tayyip Erdoğan and his Japanese counterpart Shinzō Abe, signed a deal over US$22 billion for the construction of the Sinop Nuclear Power Plant that will be carried out by a joint venture consortium of Japanese Mitsubishi Heavy Industries and French Areva. The Atmea reactor will be used. Mitsubishi Heavy Industries and Itochu, having top-level safety knowledge and experience against earthquakes, will build the power plant, which will have a capacity of around 4,800 MWe by four pressurized water reactors (PWR). The nuclear plant will be operated by the French electric utility company Engie. According to a goodwill agreement, the Turkish Electricity Generation Corporation (EÜAŞ) will have 20-45% shares in the nuclear plant. It is projected that the nuclear plant's first unit will be active by 2023, and the last unit enter service by 2028. Construction is expected to start in 2017.

Renewable energy Hydroelectricity in Turkey is the largest renewable source of electricity however solar power looks likely to increase rapidly. Wind power in Turkey is mainly in the west. Geothermal power in Turkey is used mainly for heating. By massively increasing production of solar power in the south and wind power in the west Turkey could meet its entire predicted 2020 energy demand from renewable sources

Electricity Production The gross electricity consumption in Turkey in 2012 was 242,4 billion kWh, while this figure rose by 1,3% in 2013, reaching 245,5 billion kWh. At the same time our electricity output fell by 0,1% when compared to the previous year (239,5 billion kWh) to 239,3 billion kWh. According to the highly probable scenario of an increase of 6,9% to 392 TWh in the base scenario, electricity consumption in the year 2020 is expected to rise by 5,5% to 357,4

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TWh. In 2013, power plants containing a total of 6.985 MW additional capacity were added to the system, and our capacity has risen to around 64.044 MW.43,8% of our electricity output in 2013 cane from natural gas, 24,5% from coal, 24,8% from hydraulic energy, %2 from liquid fuels, and 4% from renewable sources.As of the end of 2013, EÜAS (electricity generating company) had a share of 37,1%, the generation companies 42,8%, the build and operate companies 9,5%, the auto-producers 5,4%, the build-operate-transfer plants 3,6%, and the plants whose operation rights have been transferred 1,5% of the installed capacity within Turkey. In line with the aim of liberalising the electricity market, it has been set forth that new generation investments be carried out by the private sector, in accordance with the Legislation numbered 4628 and the new Electricity Market Legislation numbered 6446. Almost 29.474 MW of the 32.198 MW which has become operational in the last two years comes from the plants built by the private sector. In 2013, power plants containing a total of 6.985 MW additional capacity were added to the system, and of this 6.821 MW comes from the plants built by the private sector. The breakdown of the generation plants which have been taken into operation as part of this total of 6.985 MW installed capacity, is as follows:

4000 3500 f.Solar 3000 e.Thermal plants 2500 d.Landfill gas and biogas 2000 1500 c.Hydraulic 1000 b. Wind 500 a.Geotermal 0 1. 148,6MW 2674,6MW 3578,9MW agriculture

Home to the headwaters of the Tigris and Euphrates Rivers, Turkey’s agricultural sector today is echoing the prosperity of ancient Mesopotamia. With its favorable geographical conditions and climate, large arable lands, and abundant water supplies, Turkey is considered to be one of the leading countries in the world in the field of agriculture and food. Turkey has a robust agriculture and food industry that employs over a quarter of the country’s working population and that accounts for 7.1 percent of the country’s GDP. The sector’s financial contribution to the overall GDP increased 43 percent from 2002 to 2014, reaching USD 57.2 billion in 2014. Turkey is the world’s 7th largest agricultural producer overall, and is the world leader in the production of dried figs, hazelnuts, sultanas/raisins, and dried apricots. The country is also one of the leading honey producers in the world. Turkey boasted production of 18.6 million tons of milk in 2015, making it the leading milk and dairy producer in its region. The country also saw production totals of 38.6 million tons of cereal crops, 28.5 million tons of vegetables, 17.5 million tons of fruit, 2 million tons of poultry, and 1.1 million tons of red meat. In addition, Turkey has an estimated total of 11,000 plant species, whereas the total number of species in Europe is 11,500. Globally, Turkey exported 1,781 kinds of

47 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + agricultural products to 190 countries in 2015, accounting for an export volume of USD 16.8 billion. According to McKinsey and Co., Turkey offers significant investment opportunities in agribusiness subsectors such as fruit and vegetable processing, animal feed, livestock, poultry, dairy, functional food, fisheries, and enablers (in particular cold chain distribution, greenhouses, irrigation, and fertilizer). As part of its targets set for the agriculture sector by 2023 Turkey aims to be among the top five overall producers globally. Turkey’s vision for its centenary in 2023 includes other ambitious goals, such as:

 USD 150 billion gross agricultural domestic product  USD 40 billion agricultural exports  8.5 million hectare irrigable area (from 5.4 million)  Ranking number one in fisheries as compared with the EU fisheries

Aquaculture with a relatively short history in Turkey began with the farming of rainbow trout (Onchorhynchus mykiss) and common carp (Cyprinus carpio) in the late 1960s and developed further with gilthead seabream (Sparus aurata) and European seabass (Dicentrarchus labrax) culture in the mid-1980s. Production of the three major species, namely rainbow trout, seabass and seabream increased rapidly during the 1990s with production now reaching 158 000 tonnes/year in 2009 of rainbow trout, seabass, seabream, mussel, common carp and other species, produced in 1 855 farms. Currently, the aquaculture share of total fishery production is around 25 percent by volume (158 724 tonnes of 623 192 tonnes total production) and around 53 percent by value (USD 670 million out of a total of USD 1 260 million USD). The majority of production (about 98 percent) comes from intensive farming systems; rainbow trout is mainly consumed locally, while around 75 percent of seabass and the seabream are exported to EU countries. Almost all of the aquaculture products are sold as whole fresh fish. The institutional framework for aquaculture development is well-established under the authority of the Ministry of Agriculture and Rural Affairs (MARA). The sector is regulated through licensing, health and environmental regulations. The primary law concerned with the regulation of aquaculture is the Fisheries Law Act No. 1380 of 1971 and Aquaculture Regulation No. 25507 of 24 June 2004. services

In the early 1980's Turkey launched a radical stabilization and structural reform programme. The programme was designed to liberalize and outward-orient the Turkish economy which had relied on "import-substitution" development strategies for decades. The measures taken included lowering border protection unilaterally; encouragement of exports and foreign investment; abolition of rigid foreign exchange controls; deregulation of financial markets; introduction of the value-added tax; initiation of plans to down-size the public sector and to strengthen and/or privatise State Economic Entreprises (SEE's).

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Turkey’s strategic location at the crossroads of Europe, the CIS, the Middle East, and North Africa, along with the country’s existing potential, increase in per capita income, and large, young and growing population have positively impacted the development of the business services sector in Turkey. Turkey has significant experience in a wide range of business service lines, such as engineering and architectural consulting, technical testing, and call centers. The country also boasts expertise in knowledge-based services, such as auditing and accounting, legal advisory, and consulting.

DEFINITIONS REGARDING THE RESIDENCE PERMITS PROCEDURES OF THE FOREIGNERS 1- Residence Permit for Work: In accordance with the 2nd Paragraph of the Article 3 of the Foreigners Law No.5683, foreigners who have come to Turkey in order to work should be issued residence permit in any case before working and within a month following their arrival. Foreigners who have come to Turkey in order to work and obtained work visa abroad, should be issued residence permit at the latest within 30 days following their arrival and before working. 2- Interruption in the Residence: Residence permit owner foreigners who exits Turkey and do not renew his/her residence permit within 6 months without any reason, or, who do not renew his/her residence permit within 6 months although s/he is in Turkey, become illegal. 3- Application Period for the Residence Permit: Foreigners who come to Turkey for various purposes with short-term or long-term visas, with visa exemption, sticker visas, etc. should be issued residence permits in accordance with the Article 3 of the Foreigners Law No. 5683. Foreigners should be issued residence permit from the TNP units at the latest at the expiry dates of their visas. Meanwhile, foreigners who come to Turkey by taking their long term visas from Turkish Missions abroad for various purposes such as work, education, research, long-term stay, etc., may be issued residence permits starting from their entry dates into Turkey in case they demand. employment contract

Information on fixed-term, temporary and full- or part-time contracts for workers employed in Turkey. A Turkish employer must offer a written employment contract if the duration of permanent employment is more than a year, or if the contract has a fixed term. Turkey has four types of job contract: Contracts for temporary and permanent work; contracts for definite and indefinite period; contracts for part-time and full-time work; contracts for work-on-call. Definite/fixed-term employment: This is for a fixed term with a set date for the end of employment. A fixed-term contract can be renewed once only (except in specific circumstances) and thereafter converts to an indefinite contract. Indefinite/open-ended employment: This is used when the job has no specified duration or set end date.

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Temporary work: A temporary contract is for work lasting a maximum period of six months; it can be renewed twice only giving a maximum employment duration of 18 months. Full-time employment: The worker in full-time employment is contracted to work the full, normal weekly working period of 45 hours. The hours may be distributed unevenly over a week, although may never exceed 11 hours on one day. Part-time employment: Contract for a worker whose normal weekly working time is significantly less than that of an employee working full-time. On-call work and project-based employment: Normally working hours are agreed in advance. Where the hours for a project have not been decided, the weekly working time is limited to 20 hours. An employer must give decent notice when the worker is to be on duty/available. The trial period of an employee may be at most two months. However, this may be extended up to four months by agreement of both employee and employer. During the trial period, a contract can be ended without notice by either party. According to the relevant provisions of the Labor Law no. 4857, employers and employees are required to give specified notification periods prior to the termination of an employment contract, as shown in the following table. Required minimum notification periods for employers and employees Duration of service Duration of notification period 0 - 6 months 2 weeks 6 - 18 months 4 weeks 18 - 36 months 6 weeks more than 36 months 8 weeks finding a job

There are some obstacles in the way of finding a job in Turkey. There are a growing number of graduates and so competition in the job market has increased. Here are some places to look for employment:

 Industries: tourism, real estate, hotel and catering, public services, agriculture, energy and water provision, retail.

 The call and contact centres and shared services centres are recent growth areas.

 There are shortages in seasonal jobs in the tourism sector, the health sector (doctors with various specializations), and the information technology sector (engineers, analysts, programmers and software and hardware technicians).

 Big companies: TÜPRAŞ, KİPA, ETİ, ÜLKER, PETKİM, İGDAŞ, ARÇELİK, ÇAYKUR, BANVİT, FORD, MİGROS, Turkish Air Lines, BİM, BOTAŞ, OMV PETROL AŞ., TÜRKİYE PETROL, TÜRKİYE ELEKTRİK AŞ., OPET, SHELL AND TURKAS, TURK TELEKOM, AYGAZ, LCW, ENKA, VESTEL, DOĞUŞ OTOMOTİV…

 Main cities: , Izmir, Ankara, Bursa, Kocaeli, Adana, Antalya, , Konya, Muğla,

50 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + labor market situation

The ’s population have a positive impact on the country’s economy, representing a window of opportunity in many respects. The young and well-educated population of Turkey is considered to be a great asset as investors are facing considerable challenges elsewhere in Europe, such as ageing and shrinking . Turkey offers excellent opportunities with its growing, young, and dynamic population - an indispensable contributor to a strong labor pool and a lucrative domestic market. The OECD Employment Outlook 2014 finds that while the impact of the global crisis was initially severe for Turkey, it was shorter than in the rest of the OECD area and there was a much sharper rebound. The unemployment rate was 9.1% in the first quarter of 2014 in Turkey, still above the OECD average (7.3%), but lower than in the pre-crisis period (9.4% in Q4 2007). Despite rising substantially since 2007, the overall employment rate (50.0%) still remains much lower than OECD average (65.6%) and euro area average (63.8%). This reflects a relatively low employment rate for women, although it has risen by 7.3 percentage points since 2007. The increase reflects an improvement in women’s human capital but from a low base as 78% of the female working-age population still has less than a high school education. In 2015, Turkey’s population reached 78.7 million. It is expected to top 84 million in 2023, and to peak at 93.5 million in 2050, at which point the population will be more than double what it was in 1980. registration procedures and residence permit

When applying for a residecy permit the following documents must be supplied:

 Residence permit application form  The original and a copy of the passport or travel document  Four passport-size photographs  Declaration regarding sufficient and sustainable financial resources for the duration of the stay (Stated in the application form. The authority may request supporting documents.)  Official document regarding the applicant’s ownership of the residence*  Valid medical insurance (one of the following shall be sufficient):  Document facilitating health services in Turkey within the scope of bilateral social security agreements  Provision document issued by the Social Security Institution  Document regarding the application made to the Social Security Institution to be covered by the general health insurance  Private health insurance Other documents may be necessary depending on the person's particular situation, for example long term residence permit, application for extension, studying in Turkey requires different documents.

51 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + labor market shortages

Low-skilled migration, including for economic purposes, constitutes an important share of inflows in Turkey. In this regard, it is pertinent to consider whether and how this phenomenon fits in the discussion of labour and skill shortages. There is a shortage of workers in positions such as teachers; doctors of diverse specialization, nurses, information technology and construction engineers. minimum and average wage

In accordance with the 32. principle of the Income Tax Law 193, it is assumed that the worker is single and has no children, and the minimum livelihood discount is applied accordingly. Minimum livelihood discount is added to the net minimum wage. The calculations are made considering the discount applied to employers who comply with the (i) section of the 81. principle of the law number 5510. For employers who do not comply with this law, the premium is 20.5%. Doormen are exempt from Income tax (based on the 23. principle of the Income Tax Law 193) and from Stampt Duty (based on the 34.law paragraph in the fourth section of the second table of the Stamp Duty Law 488) Labor Minister Süleyman Soylu announced that Minimum Wage Determination Committee has reached an agreement on the monthly minimum net wage that will be 1.300 TL ($446) by the beginning of the year 2016 as expected. And the most-awaited news for the business community, related to incentives and subsidies to be launched by the government to reduce the burden of employers came from the Labor Minister, as he said ahead of the committee's meeting that government was to cover the %40 of employer's extra cost which is monthly 274 TL*40/100=110 TL for each employee, per month. The support arrangement will be valid only for 2016.

NEW MINIMUM WAGE AND ITS COST TO EMPLOYER

net minimum wage (single) 1.300,99 tl net minimum wage (married/spouse not working) 1.325,69 tl net minimum wage (one child) 1.344,22 tl net minimum wage (two child) 1.362,75 tl net minimum wage (three child) 1.387,45 tl gross minimum wage 1.647,00 tl cost of employer 1.935,23 tl treasury support 110 tl cost of employer after the support 1.825,23 tl

personal income tax

The tax system in Turkey is progressive. In other words, the higher your income, the higher the rate at which you will pay tax.

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An individual in Turkey is liable for tax on his income as an employee and on income as a self-employed person. In the case of an individual who answers the test of a "permanent resident", the tax will be calculated on his income earned in Turkey and overseas. A foreign resident who is employed in Turkey pays tax only on his income in Turkey. Turkey individual income tax rates 2016 (employment income) Tax % The Tax Base (YTL) 15 0-12,600 20 12,601-30,000 27 30,001-110,000 35 110,001 and over

social security

The social security system in Turkey went through a major transformation in 2007, resulting in a more efficient and fast functioning system, based on centralizing the control of different social security funds in a single institution. The three insurance funds, namely SSK, Emekli Sandigi and Bag-Kur, were merged under a sole body called the Social Security Institution (SSI) in 2007. The three insurance funds together cover around 81% of the population as of 2008. The system started to be fully operational at the beginning of 2008. The employer's contribution is 20.5% of the salary (to the limit specified in law). The employee's contribution is 14% of the salary. Employers pay additional 2% to unemployment fund, employees pay additional 1%. Turkey has signed a Double Taxation Prevention Agreement for social security with a number of countries. Other Tax deductions in Turkey Tax, in Turkey, must be deducted at source from the following payments to non-residents according to the following table: Dividend - 15%. Interest - 10%. Royalties - 20%. Technical Fees -20%. sickness benefits

Illness and injury of employees 12. What rights do employees have to time off in the case of illness or injury? Are they entitled to sick pay during this time off? Who pays the sick pay and, if the employer, can it recover any of the cost from the government?

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Employees are entitled to time off in the case of injury or illness. Employees who can document their injury or illness with a doctor's report will be entitled to time off during the period of rest recommended in the report. However, if the period of illness or injury exceeds the employee's valid notice period by six weeks, the employer will have the right to terminate the employment agreement with immediate effect by paying the employee's severance payment on the grounds that the employee's sickness cannot be cured. Entitlement to paid time off Employers are not obliged to provide sick pay to employees during sick leave. Employees are entitled to compensation during such time through government disability programmes. If the illness or injury can be classified as occupational, then the employee will be entitled to temporary sick pay for every day starting from the first day of their time off. However, where the illness or injury is not occupational, sick pay will be available for every day starting from the third day of illness or injury (additional conditions are applied under the related regulations). In practice, employers continue to pay the full salary to employees even during sick leave and then deduct the amount paid by the Social Security Institution from the employee's salary. Under the Code on Social Security and General Health Insurance, in the event that an employee loses at least 10% of their work ability due to a work-related accident, the employee will be entitled to continuous sick pay, and the amount of the sick pay will be calculated based on the percentage of the work ability lost and other relevant criteria. Recovery of sick pay from the state If the employer decides to make additional payments to the employee during sick leave, it is not possible for the employer to recover those payments from the state. unemployment benefits

Legally employed workers are eligible for unemployment benefits in Turkey. These include foreign workers, so long as they have been working and living in Turkey legally and are at least 18 years old. Contributions to unemployment funds are 1 % of employees´ earnings and 2 % of their employers´ payrolls. A worker is eligible to receive benefits after 600 days of contributions in the preceding 3 years of employment. The minimum benefit payment is 50 % of a worker´s average daily earnings (calculated from the 4 months prior to unemployment), and cannot be higher than minimum wage for that worker´s industry. Benefits may be paid for up to 1,080 days, depending on the unemployed person´s number of contributions.

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All employees who have worked for at least one year including the probation period are entitled to paid annual leave; and leave periods, which is determined according to employee's length of service, may not be shorter than the durations herein below:

 Paid annual leave may not be less than 20 days for employees under the age of 18 or over the age of 50.

 In addition, employees are also allowed to take up to 4 (four) days' leave without pay, on condition that the employee provides documentary evidence that s/he is spending his/her annual leave at a place other than where the work place is located.

 Other kinds of leave, with or without pay, granted by the employer during the year or taken by the employee as convalescent or sick leave shall not be deducted from annual leave.

 Employees engaged in seasonal or other occupations which, owing to their nature, last less than one year are not entitled to paid annual leave.

 Employees’ paid leave entitlements and the leaves taken should be recorded and the documents in respect to leaves must be signed with both employee and employer.

 If the employee leaves before completing one year of service there will be no annual leave on pro rata basis. Severance pay is a lump-sum payment made to an employee who was employed within an employment relationship subject to the Labour Law (4857) and whose labour contract has been terminated under one of the specified categories of termination regulated under Article 14 of the former Labour Law (1475). These categories are still in force, although the earlier law has since been repealed. At present, in order to be entitled to severance pay, the employee must have been employed for at least one year. However, if the Draft Law on the Severance Pay Fund enters into force, both the existing severance pay system and its mode of payment will be substantially amended. The employer terminates the employment contract with or without a term of notice for reasons concerning the employee's health (Article 25/I) or force majeure (Article 25/ III). As a rule, severance pay is not paid in cases where the employee gives notice of termination to the employer (ie, if the employee resigns). Furthermore, a female employee who terminates her employment of her own will as a result of marriage is entitled to receive severance pay, provided that the termination occurs within one year of the marriage.

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Severance pay of a deceased employee must be paid to his or her legal heirs. The employment relationship will end following the death of the employee and his or her legal heirs must submit their certificate of inheritance to the employer. On the enactment of the draft law, employees would be entitled to severance payment, if: the employee terminates his or her employment contract to receive old-age, retirement, disability pension or a lump-sum payment from the institution or fund to which he or she is subject; the employer terminates the employee's employment contract and the employee applies to the institution or fund to which he or she is subject in order to receive old- age, retirement, disability pension or a lump-sum payment to which he or she is entitled; or the employee for whom the contributions were paid to the fund for 10 years requests his or her severance pay. In case of the employee's death, the legal heirs would be entitled to severance pay on behalf of the deceased employee. Thus, under the draft law, even if the employee resigns from the workplace or the employer goes bankrupt, the severance payment must be made to the employee. Furthermore, the obligation to be employed at least for one year at the same workplace (or at different workplaces of the same employer) has been removed and the employee could receive his or her severance pay from the fund, provided that the conditions for entitlement to severance pay were fulfilled. In addition, employees would no longer be able to receive severance pay in case of marriage, compulsory military service or qualifying for a lump-sum payment and would be required to be employed for at least 10 years to be entitled to receive severance pay from the fund. benefit amounts

Earnings-related Between September 1999 and October 2008 The pension under the scheme is based on average lifetime earnings revalued in line with real GDP growth and the change of CPI [(1 + GDP) × (1 + CPI)]. The pension has a non-linear formula with years of coverage. The first ten years earn a pension of 35% of pay, with 2% per year extra for the next 15 years and 1.5% per year thereafter. After October 2008 The pension under the new scheme is based on average lifetime earnings revalued in line with real GDP growth and the change of CPI [(1 + CPI + 30% GDP)]. The accrual rate is 2% for one year of coverage and it cannot exceed 90% of pension. There is a floor above which contributions are required. This was TRY 1 071.0 for the first half of 2014 and TRY 1 134.0 for the second half of 2014. There is a ceiling to pensionable earnings; its value was TRY 6 961.5 for the first half of 2014 and TRY 7 371.1 for the second half of 2014. According to the law acted in 1999 pensions are indexed monthly and follow the consumer price index. But since 2003 indexation of pensions in payment is determined once or twice a year, either by Budget Laws/Other Laws or by Board of Cabinet. With the reform the pensions are indexed with CPI of the preceding six months and twice a year, in January and July. For the first half of 2014,

56 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + pensions were increased by 3.27% and for the second half of 2014, pensions were increased 5.70% (this rule is not implemented for civil servants because of collective agreements directed to financial and social rights for public officials in general, and service branch). For 2014, pensions are increased by TRY 175 for civil servants. Minimum The minimum pension level for workers was TRY 952.7 for first half of 2014 and TRY 1 007.0 for the second half of 2014, for self-employed was TRY 671.5 for first half of 2014 and TRY 709.85 for second half of 2014 and for civil servants was TRY 1 261.1for 2014. These figures as stated are minimum level of pensions. As a general rule the amount of pensions shall not be less than 35% or 40% if the insurer has dependant spouses or children, of the average monthly earning determined in January of the year of request, considering lower limits of earnings subject to premium determined for each year in service terms. Thus, the minimum pension varies among the insurers. Except for this rule there is no specified minimum pension. health insurance

Turkey has an excellent national health insurance plan, from the Sosyal Güvenlik Kurumu, (Social Security Administration, or SGK). Once you enroll and pay the first premium, you are covered, and you will get a health insurance ID card that you can present at any state hospital to be treated, without charge. Some private hospitals also accept SGK insurance, but since treatment at private hospitals is more expensive than at state hospitals, there may be additional charges you will need to pay in cash, or have them covered by supplemental insurance that you can get from one of the Turkish insurance companies. The premiums for SGK insurance are currently 395 TL per month (2016). Before only Turkish citizens, foreigners by marriage or work could benefit from it, but now it’s possible to apply for SGK for everyone, even those who want to apply for Residence permit for tourism. This insurance provides free of charge medical service at public hospitals and provides some % of discount at private hospitals. But discount rates depend on hospitals and their agreements with SGK. The very big benefit of this type of insurance is the ability for people with serious sicknesses which require expensive surgeries or long lasting expensive medications etc. to use it as long as they pay premiums every month. While private insurances have right to increase their premiums for that category of people and put limited payments. cost of living

There is no doubt that Turkey is the perfect place to enjoy a quality education and a relatively good quality of life. What makes it even better is that Turkey offers excellent value for money, with living expenses and tuition costs comparable to other countries. Estimated Cost of Living An average international student in Turkey will spend about 400-500 USD a month on accommodation, food, clothing, entertainment, transportation and telephone costs. Books

57 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + and administrative fees are approximately 100-150 USD per semester. Remember, though, that this figure depends on your location, lifestyle and which degree course you attend. You should seek further information on living costs from your institution directly.

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2 Living & Working Conditions In Romania PARTE

quick facts

Official Name: Romania Capital city: Bucharest Location: Romania is situated in the southeastern part of Central Europe and shares borders with Hungary to the northwest, Serbia to the southwest, Bulgaria to the south, the Black Sea to the southeast, Ukraine to the northeast and the Republic of to the east. (Southeastern) Central Europe. Climate: Because of its position, Romania has a climate which ranges from temperate to continental. Climatic conditions are somewhat modified by the country's varied topography. The Carpathians serve as a barrier to Atlantic air masses, limiting their oceanic influences to the west and center of the country (Transilvania, Banat and Maramure), which have milder winters and heavier rainfalls as a result. The mountains also block the continental influences of the vast plain to the north in the Ukraine, which results in frosty winters and less rain to the south and southeast. In the extreme southeast, Black Sea influences offer a milder, maritime climate. The average annual temperature is 11 °C (51.8 °F) in the south and middle-south and 8 °C (46.4 °F) in northeast. Rainfall, although adequate throughout the country, decreases from west to east and from mountains to plains. Time Zone: GMT + 2 Area: 238,391 sq. Km Population: 19,942,000 (March 2014) Largest cities: Bucharest (1,883,400), Iasi (322,000), Cluj Napoca (309,000), Timisoara (303,000), Constanta (298,000), Craiova (295,000), Galati (286,000), Brasov (275,000), Ploiesti (224,000), Braila (205,000), Oradea (196,400). Romania's population lives in 320 cities and towns and 12,956 villages. Main Ethnic Groups: Romanian 84%, Hungarian 6.1%, Gipsy 3.1%, German 0.2%, Ukrainian 0.2% Religions: Christian Orthodox 81%, Roman Catholic 4.3%, Reformed 3%, Greek-Catholic 0.7%, Unitarian 0.3%, Jewish, other. Official Language: Romanian Currency: Leu (RON) Form of State: Romania is a semi-presidential democracy based on a bicameral Parliament: the Chamber of Representatives or "Chamber of Deputies" and the Senate.

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All members of the legislature are directly elected from Romania's 41 counties. Under the semi-presidential system, the president is responsible for foreign and defense policy and controls appointments of prosecutors and the judiciary.

The division of the territory into counties economy

Romania has a developing, upper-middle income market economy, the 17th largest in the European Union by total nominal GDP and the 13th largest based on purchasing power parity. The collapse of the Communist regime in 1989, reforms in the late 1990s and early 2000s and its 2007 accession to the European Union have led to an improved economic outlook. Romania has experienced growth in foreign investment with a cumulative FDI totaling more than $170 billion since 1989. Up until the late 2000s financial crisis, the Romanian economy had been referred to as a "Tiger" due to its high growth rates and rapid development. Until 2009, Romanian economic growth was among the fastest in Europe (officially 8.4% in 2008 and more than three times the EU average). The country is a regional leader in multiple fields, such as IT and motor vehicle production. Bucharest, the capital city, is one of the largest financial and industrial centres in Eastern Europe. In 2015, at 3.7 percent, Romania had one of the highest growth in the European Union driven primarily by the domestic demand. Over the last 26 years, the country has made considerable progress in developing the institutions for a market economy. Joining the European Union in 2007 was a driving force for reform and modernization. Romania’s macroeconomic situation is stable, with low inflation and external deficits, but risks are important. Growth is strong, fueled by the fiscal relaxation and by improvements in the labor market. Gradual improvements in labor demand and recent wage policy changes have led to rapid increases in wages. Economic growth has also positively impacted employment, but improvements in labor force participation and job creation have been below expectations, signaling continued rigidities in the labor market, including skills mismatch.

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One of Romania’s key priorities continues to be upgrading the skills of its population to meet the Europe 2020 targets and bring the level of achievement of Romanian children in key subjects to current levels found in most European countries. A National Education Law in force since early 2011 promotes changes in virtually all areas of education. Another priority is reforming the health sector with a focus on promoting cost-effective outpatient and primary care services, rationalizing the hospital infrastructure and reducing inefficiencies and waste in the sector. Once considered a breadbasket for Europe, agriculture plays an important role in Romania. However the sector requires further development. Romania has the highest proportion of rural population in the EU (45%), the highest incidence of rural poverty (over 70%), and one of the largest gaps in living and social standards between rural and urban areas. Under the Europe 2020 strategy, Romania has committed to reduce the population at risk of poverty by 580,000 persons and to achieve an employment rate of 70 percent by 2020. By 2013, only a third of the poverty target had been achieved. One in five Romanians is income poor, and a large share of income poverty is persistent, in that three-quarters of the poor have been poor for at least three years. One-third of the population is severely deprived materially in the sense of not being able to afford items considered to be desirable or even necessary to lead an adequate life. Decreases in the poverty rate pre-2010 reversed in 2010–13, resulting in a marginal decline in poverty of less than 1 percent between 2008 and 2013. Consumption vs production Romanian imports outweigh the number of exports, according to a report delivered by the Chamber of Commerce and Industry with reference to the year 2015.

The structure of exports on main categories of products – 2015

TOTAL FOB exports 54598 million euro

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The structure of imports on main categories of products – 2015

TOTAL CIF imports 62968 million euro

Most of Romania’s economic relations are established within the European Union, as can be noticed in the following table.

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As for the unemployment rate, according to http://www.romania-insider.com/, it dropped to 6.4% in March this year in Romania, down 0.1 percentage points from February when it reached the lowest level after 2009. The number of unemployed amounted to 592,000 in March, down by 5,000 compared to the previous month, according to recent data from the National Statistics Institute (INS). In March 2015, the total number of unemployed in Romania was of 613,000. The unemployment is higher among men (6.9% in March) compared to women (5.8%).

industry

After the Revolution in 1989, the country has steadily moved towards a market economy. Therefore, most state-owned factories and plants started to take in private capital. The state stimulated the development of small and medium enterprises and services. Foreign investments covered the deficit of the internal capital. The current state of affairs can be observed in the following:

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Romania benefits from a rich and well-balanced mix of natural resources. Hydrocarbons are found across two-thirds of the country, and the petroleum industry dates back to the 19th century. The areas around Bacău and Ploiesti have long been famous for their oil-refining industry, and recent developments have been noted in the city of Pitesti. Oil reserves have also been discovered in the Romanian sector of the Black Sea in 1981. In addition, Romania possesses considerable reserves of natural gas, found mainly in Transylvania, where large deposits of methane gas and salt were first exploited through the chemical industry in the 1930s. These reserves, however, have since been depleted. A large lignite field in the Motru valley, in the southwestern part of the country, supplies two of Romania’s largest power stations, located in Rovinari and Turceni. Romania’s multiple river systems, coupled with the Danube, give the country considerable hydroelectric potential. At least three-fifths of electricity is generated at the Iron Gate. Two nuclear reactors were launched with Canadian assistance at Cernavodă, on the lower Danube, the first in the mid-1990s, followed by another reactor in the early 2000s. The largest coal reserves are those of bituminous coal (soft coal); half of Romania’s bulk coal production comes from the Jiu Valley alone. Reserves of poorer-quality lignite increasingly are being tapped to meet energy requirements. Except for the Baraolt-Vârghi Basin, which lies within the Carpathians, most of these deposits are found along the fringe of the mountain areas. There are concentrations in Moldavia, Transylvania around the city of Cluj, the Jiu Valley, and on the Danube floodplain. Anthracite (hard coal) is found in the Banat and Walachia regions. A wide variety of metals are found in Romania. Major iron deposits are located in southeastern and southwestern Transylvania, Banat and Dobrogea. Manganese is mined in northern Transylvania near the headwaters of the Bistria River and in Banat. Chrome and nickel deposits are found near the Iron Gate along the Danube. Copper, lead, and zinc exist in Maramure, near the headwaters of the Bistria River and in the Apuseni Mountains, where silver and gold deposits and molybdenum are also found. Important bauxite mines are located southeast of Oradea. Minerals including sulphur, graphite, and mica are also found in limited quantities. Moreover, there are large salt deposits near Tîrgu Ocna and Ocna Mure. Coal-based manufacture behind a medieval castle-museum in Hunedoara, west-central Romania.

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Agriculture has traditionally been the backbone of the Romanian economy; more than one- third of the land is devoted to cultivation (including vineyards, orchards, and vegetable gardens). The climate and relief of the extensive Romanian plains are most favourable to the development of cereal crops, although these also are found in the Subcarpathians and in the Transylvanian Basin, where they occupy a high proportion of the total arable land. Wheat and maize are the most important crops, followed by barley, rye, and oats. Two-row barley is cultivated in the Brasov, Cluj, and Mures areas, where it is used for brewing. Vegetables and legumes—peas, beans, and lentils—are planted on relatively small plots. Peas are the predominant crop; maturing in time for an early harvest, they allow a second crop, usually fodder plants, to be grown on the same ground. Vegetable cultivation is particularly marked around the city of Bucharest, with specialization in the production of early potatoes, tomatoes, onions, cabbages, and green peppers. Similar gardening areas are found around Timisoara, Arad, Craiova, Galasi, Brăila, and other cities. The most important potato-growing areas are the Brasov, Sibiu, Harghita, and Mures districts. Other related crops include sugar beets, sunflower seeds (mostly on the Danube, Tisa, and Jijia plains), soy beans and tobacco. Romania can be counted among the main wine-producing countries of Europe. It specializes in the production of high-quality wines, using modern methods; with the growth of the tourist trade, its wines are becoming known to, and appreciated by, a larger international public. Large quantities are exported annually. The best-known vineyards are at Odobeti, Panciu, and Nicoreti, though there are a half-dozen or more other major centres. Both white and red wines have won various international awards. At an elevation between 1,000 and 1,600 feet (300 and 500 meters), orchards are found on almost all the hillsides on the fringe of the Carpathians. There is specialization in fruits with a high economic yield. Orchards have solved problems of soil erosion on many unstable hillsides. Livestock raising has a very long history in Romania. Sheep can be raised wherever grass is available, whether in the Carpathian pastures or the Danube plain and valley. About half the cattle are raised for beef, which is an important export. In the 1990s the livestock sector experienced many of the same declines that crop cultivation did; however, by the early 2000s the trend reversed, and beef exports increased. Dairy products are also an important component of Romanian agriculture, as are wool, eggs, and honey.

fisheries

The rivers of Romania, its lakes and its Black Sea coastal region support a well-developed fishing industry. During communist rule, ocean fishing in foreign waters was developed rapidly to supplement the domestic catch and to increase the export of meat. Since the 1990s, demand for fish has fallen, largely because of the reduction in fleet and resources and the increase in the price of fish relative to other animal protein products. The largest quantity of fish comes from the Danube River, and most of the annual catch is consumed fresh. In the mid-1980s Romania’s leader, Nicolae Ceaușescu, attempted to transform the Danube delta into a region of grain fields. Local residents were forced out as dikes were

65 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + built to pump water out of the delta, and the grounds were flattened and planted with wheat and rice. Thousands of marine plants and animals were killed. After the revolution, the Romanian government created the Danube Delta Biosphere Reserve in 1991 to oversee the restoration of the delta. Among the fish found in the Danube delta are carp, sheat fish, pike, and zander, along with fish that migrate from the Black Sea, such as the Danube mackerel and the sturgeon, which produces caviar, Romania’s most valuable fish product. In 2006, however, Romania issued a 10-year ban on commercial sturgeon fishing, citing concerns about the decline in sturgeon populations. Canneries are located at Tulcea, Constanța, and Galați. Trout farms are scattered throughout the country, though water pollution has endangered many of them. Mackerel, anchovy, and plaice can be caught on the Black Sea shore. services

The service sector in Romania is vast and multifaceted, employing some three quarters of Romanians and accounting for two thirds of GDP. The largest employer is the retail sector, employing almost 12% of Romanians. The retail industry is mainly concentrated in a relatively small number of chain stores clustered together in shopping malls. In recent years the rise of hypermarkets, such as Cora and Carrefour have led to fewer workers in this sector and a migration of retail jobs outside of central urban areas. The second largest portion of the service sector is that of business, employing only a slightly smaller percentage of the population. This includes financial services, real estate and communications industries. This portion of the economy has been rapidly growing in recent years. It is largely concentrated in the major urban centres, especially Bucharest. Romania has an important high tech industry, and also an entertainment industry creating content both for local and international consumption. Tourism is of ever increasing importance, with the vast majority of international visitors coming from the EU, though the recent strength of the Romanian leu has damaged this sector. Tourism is a significant contributor to the Romania Economy. In the 1990s the government heavily promoted the development of skiing in the Romanian Carpathians. Domestic and international tourism generates about 6% of gross domestic product (GDP) and 0.8 million jobs. Following commerce, tourism is the second largest component of the services sector. In 2012, Romania registered 20 million overnight stays by international tourists, 4% higher than in the previous year and an all-time record. Two-thirds of all major trade fairs from Central Europe are held in Romania, and each year they attract 2 to 3 million business travelers, about 20% of whom are foreigners. The four most important trade fairs take place in Bucharest, Cluj-Napoca, Iaşi, Timişoara. In the year 2013, 7,722,000 tourists vacationed in Romania. The total revenue was $2.1 billion and with an average expenditure of $300 per tourist. Over the years, Romania has emerged as a popular tourist destination for many Europeans, often competing with Greece, Italy and Spain. Romania destinations such as Constanța and Mamaia (sometimes called the Romanian Riviera) have become very popular among European tourists.

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The Romanian nationality law addresses specific rights, duties, privileges, and benefits between Romania and the individual. Romanian nationality law is based on jus sanguinis ("right of blood"). Current policy in Romania is in accordance with the Romanian Citizenship Law, which was adopted by the Romanian Parliament on March 6, 1991, and the Constitution of Romania, which was adopted on November 21, 1991. From Article #5; Law 21 – The children born from Romanian citizens on Romanian territory are Romanian citizens. Furthermore, Romanian citizens are also those:

 born on Romanian territory, even if only one of the parents is a Romanian citizen;  born abroad with at least one parent holding Romanian citizenship. Romanian citizenship can be acquired after five years of residency in the country while demonstrating a working knowledge of the and knowledge of Romanian culture.

employment contract

In Romania, an employment contract is required by law. It must identify the employee and the employer, the job location and its registered address. It must also include a job description, details of any job-specific risks (if any) and the date of commencement of the contract. Additionally, the following should be specified: the amount of annual leave to which an employee is entitled, the base salary, any other elements included in the remuneration, the frequency of salary payments, normal working hours (in hours/day and days/week), and the collective employment contract regulating an employee’s working conditions. Individual employment contracts are registered with the Employees’ General Register at the Office of the Labor Inspectorate. An employer is obligated to the employee with a copy of their employment contract, which has been signed by both parties and registered with the Local Labor Inspectorate. Fixed-term individual employment contracts may be drawn up for a period of up to 12 months. Such a contract may be extended for no longer than 18 months. If a fixed-term employment contract has been suspended, the fixed-term contract expires as soon as the causes of the suspension cease to exist.

finding a job

The Romanian unemployment rate is close to the EU average, with the most recent statistics placing it at 6,1%. Youth unemployment currently stands at approximately 20%. In terms of seeking a job in Romania, the following should be taken into consideration:

 Main industries: tourism, real estate, hotel and catering, public services, agriculture, energy and water provision, retail.  Call centers are also important employment sources in urban areas

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 There are shortages in the educational sector, the health sector (doctors with various specializations), and the information technology sector (engineers, analysts, programmers and software and hardware technicians).  Largest companies: TAROM, Romtelecom, Orange, Telekom, Blue Air, Vodafone, Oracle, Zara, H&M, Auchan, Carrefour;  Main cities: Bucharest, Iași, Cluj-Napoca, Timișoara, Constanța

minimum and average wage

The minimum wage in Romania is currently 1,250 lei (277 euros). However, there is currently a legislative proposal to major this amount to 1,450 lei (320 euros) by the 1st January 2017. The average salary is 2086 lei (497 euros).

taxes

Romania’s individual income tax rate is currently 16%, as are corporate tax rates and taxations for capital gains. For individuals the tax rate for gain from sale of real estate is 1%-3%. Romanian companies and individuals pay taxes on their Romanian and worldwide income. Non -residents companies and individuals pay taxes only on Romanian source income. A foreign company is resident if the management is in Romania. An individual is resident if the center of living is in Romania, or if staying in Romania for 183 days within 12 months. Regarding tax deductions, the following facts are relevant:

 Losses are carried forward for seven years. There is no carryback for losses.  Depreciation is deducted using one of the 3 methods,the straight line method, the reduced balance depreciation and the accelerated method.  Provisions for bad debts are allowed under certain terms. There is no company consolidation for tax purpose. In Romania tax is deducted at source from the following payments to non-residents:  Dividend- 16%  Interest- 16%  Royalties- 16%  Technical Fees-16%. Note: the tax withholding rates are subject to double taxation treaties and EU interest and royalties directive. Romanian citizens’ contributions towards state funds are outlined in the table below:

Employer Employee Social Security 15.8% 10.5% Health Fund 5.2%% 5.5% Unemployment 0.5% 0.5% Fund

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Risk Fund 0.25% -- 0.15%- Accidents Fund -- 0.85% Medical Leave 0.85% -- Disabled 4% -- Contribution benefits and benefit amounts

Social welfare (ajutor social in Romanian) in Romania is coordinated by the Romanian Ministry of Labor, Family and Social Protection. The system is funded from the state budget. There are roughly fifty types of welfare a Romanian citizen can receive. As of 2012, it has been estimated that 5.9 million Romanians are receiving some form of welfare. In 2013, the budget granted for social welfare was €17.5 billion. Romania has recently modified legislation on the unemployment insurance system and on job growth in order to better integrate active and passive labour market policies. The legislation currently includes two measures for supporting parents’ participation in the labour market. The first measure refers to free of charge vocational training provision for people who get back to work after parental leave for children with disabilities aged two or three. The second measure refers to financial incentives for employers that offer employment opportunities to the sole provider in single parent families. Legislation in the field of social assistance has the purpose of improving the living standards of families with children. The legislation on child raising allowance (EGO no. 111/2010) allows parents to choose between two different ways of receiving parental leave and benefits for raising a child, depending upon the duration of work leave. Maternity care is free in Romania. As soon as mothers give birth, they are entitled to vacation time and receive aid which amounts to 75% of their net income without a limit being set. After the age of two, children receive an allowance up until the age of 18, although they must attend school in order to be eligible. Adults are entitled to certain kinds of welfare, the most widespread being subsidies for heat and electricity, provided through municipalities who receive funding from the Ministry of Labor. In 2012 it was noted that funding for this welfare had been reduced and those previously in receipt of aid no longer eligible, unless the applicant earned below a certain income level. Adults are also eligible for unemployment aid, the amount varying from case to case, but generally comparable to the minimum wage. Unemployment aid may be granted if the applicant has contributed and if they can prove they are actively seeking a job. It is granted on a time-limited, individually determined basis. There is also a subsidy available for funeral arrangements amounting to 2000 RON, and given regardless of the circumstances. In order to be eligible for assistance, a death certificate is required. A pension is provided by the state. Women retire at the age of 62, and men at 65. The pension is granted regardless of whether contributions are made. The minimum pension

69 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S + given is 350 RON, increasing in proportion to contributions made during working life. Some retirees have pensions in excess of the median salary, however one third live off a pension equal to or under the minimum wage. Retirees also receive subsidies for public transportation. cost of living

In terms of living costs, Romania is cheaper than Poland, Hungary and the Czech Republic, making it one of the most convenient destinations in the European Union from a financial perspective. The 2015 Mercer Cost of Living Survey ranked Bucharest at 178th out of 207 cities.Rural areas and smaller cities such as Pitesti, Cluj and Iasi are cheaper than the towns that have are more popular with expats: Timisoara, Sibiu and Brasov. Bucharest is significantly more expensive than any of these, but these cities are where jobs and infrastructure are concentrated, so most expats will settle there. That said, if one is willing to live more like a local, it is possible to live comfortably in Romania on a much lower budget. Average prices are available in the following:

Accommodation (monthly rent in good area)

Furnished two bedroom house RON 40,000

Unfurnished two bedroom house RON 30,000

Furnished two bedroom apartment RON 20,000

Unfurnished two bedroom apartment RON 9,000 Food and Drink

Milk (1 litre) RON 4.5

Dozen eggs RON 8

Loaf of white bread RON 1.6

Rice (1kg) RON 4.5

Pack of chicken breasts (1kg) RON 19

Pack of cigarettes (Marlboro) RON 16 Eating Out

Big Mac Meal RON 18

Cappuccino RON 7.3

Three course meal at mid-range restaurant RON 50 Utilities

Mobile call rate (minute-to-minute) RON 0.54

Internet (uncapped ADSL or Cable – average per month) RON 40

70 G OOD P R A C T I C E S F O R E M P L O Y M E N T I N E UROPE ERA S M U S +

Electricity (average per month for standard household) RON 300

Hourly rate for a domestic cleaner RON 16 Transport

City centre bus fare RON 1.5

Taxi rate per km RON 1.39

Petrol (per litre) RON 5.58

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2016

ERASMUS+ PROGRAMME CAREER PLANNING FOR TEENAGERS

KA2 STRATEGIC PARTNE RSHIP COOPERATION FO R INNOVATION AND THE EXCHANGE OF GOOD PRACTICES