Incentives announced in the Budget to encourage the unemployed to get off the dole and hold down a job have been formally brought into force.

Social Policy Minister Marie-Louise Coleiro-Preca said the unemployed who received unemployment benefits or social benefits would, on getting a job, retain 65% of the social benefits for the first year, 45% in the second year and 25% in the third year.

Their employers would get a percentage of the social benefit paid to the workers for three years.Ms Coleiro Preco said the incentive applied for full-time and part-time workers where the workers' salary amounted to at least the minimum wage. A worker may only benefit once. The scheme is back-dated to January 1.