REDUCED SOCIAL SECURITY COSTS FOR PERMANENT CONTRACTS

On March 1 the government made ​​official the entry into force of the measure announced last week in the debate of the state of the nation with the aim of encouraging the hiring of workers, consisting in reducing the Social Security payments for non-work-related injuries or illnesses (common contingencies), for all companies that make permanent contracts .

This affects contracts made between February 25^th  2014 and December 31^st  2014 and is applied when companies  hire workers on  either full-time or part-time contracts.

The payment will be of 100 euros per month for the part of common contingencies, in the event of full-time contracts. And  75 or 50 euros a month on part time contracts depending on the day of work performed.
  

The reductions will be applied for a period of 24 months. And also, during the next 12 months , the companies with fewer than 10 employees are also entitled to obtain a reduction of 50% on the contributions for common contingencies for the hired permanent workers.

To be entitled to these reductions , the employer must meet certain requirements :

• Be up to date in payments with their tax and social security. Not having formal debts.

• Not have been excluded from access to the benefits of employment programs for the commission of certain indictable offenses.

• Keep  for 36 months both the level of total employment and the permanent employment level reached with the contract affected.

• A net job level must be created with the contract.

• Have not been extinguished contracts for objective reasons or disciplinary dismissals  and being declared as improper in Court. For extinctions produced only from February 25^th 2014.

• These measures do not apply some labor relations of special character, hiring employees whose activities determine their inclusion in any of the special systems established in the General System of Social Security, hiring workers  that the six months preceding to the contract date had served in the same company or entity by a permanent contract (Only extinctions produced from February 25^th 2014), and the hiring of certain relatives of the employer.

However  they will be also entitled to the benefit on the cases contracted child of the self-employed , if are under 30, or over that age -if they have particular difficulties in their employment, in accordance with the provisions of the Tenth Additional Provision of Law 20 / 2007 of July 11 of the Statute of self-employment-.

If the employer fails to comply with the requirements for the enjoyment these reductions shall be refunded.