In order to ensure the payment of GMI benefit and housing benefit for needy persons, state co-finances 50% from municipalities' means for GMI benefit and 20% from municipalities' means for housing benefit.
In order to receive GMI benefit the beneficiary must sign the agreement with municipality about the cooperation with social work expert who will help to improve the motivation to engage in the labour market. An agreement must be made on participation in the crisis employment enterprises or work practices organized by municipalities with grant covered from the European Social Fund. Work practice enterprise is meant as addition to currently existing system of social safety and unemployed persons registered within its framework who do not receive the unemployment benefit have an opportunity to engage in socially useful low-qualified full-time jobs in municipalities. In jobs newly created by municipalities an unemployed person can work from 2 weeks to maximum 6 months within one year and receive a grant - 100 lats per month. Within the framework of enterprise a non-pay expenses which are necessary for providing such jobs are also covered.