One of the main
problems in Spain is the high unemployment rate,
to try to bring it down
the Government recently approved a Royal
Decree containing the so-called National System of Youth Guarantee, a
new attempt to reduce unemployment among young people. Among the
measures envisaged are new incentives for permanent contracts and
changes to contracts for formation and learning and training
contracts.
The Government's concern to achieve an increase youth employability entails the implementation of a series of measures that will benefit companies that sign permanent contracts to people under 25 or under 30 with a disability higher than 33%. These measures are in line with those adopted above, ie incentives to reduce the contribution to Social Security companies for new hires.
The Government's concern to achieve an increase youth employability entails the implementation of a series of measures that will benefit companies that sign permanent contracts to people under 25 or under 30 with a disability higher than 33%. These measures are in line with those adopted above, ie incentives to reduce the contribution to Social Security companies for new hires.
The main measure is to hire young people registered with the
National System of Youth Guarantee, which will report to the
employer a monthly bonus of 300 euros in the business contribution
to social security.
This measure will be compatible with other
incentives that are in place, keeping in mind that the monthly
amount quoted by the company cannot be
negative.
To benefit from this bonus the company must keep the worker on
contract for at least six months from the start of employment. In
case of breach of this obligation shall proceed to refund the amount
of bonus perceived until that moment. In addition the company shall
iincrease, with each new contract the level of permanent employment
as the level of total employment of the company and also the company
must maintain that level throughout the period of enjoyment of the
bonus.
In case of part time
contracts the
number of hours must be at least the 50% of a comparable full-time
worker in the company,
and the bonus obtained
by the employer would be between 150 and 225 euros .
The application of the bonus by each company will only occur once
for each of the beneficiaries of the National Youth Guarantee that
contract, regardless of the period of subsidy enjoyed by the company
for the worker.
News on the contracts for training and learning
Currently this contract allows a reduction of 100% of contributions for companies with less than 250 employees and 75% for 250 or more workers and there is a bonus of up to 25% for the training activity, which should be as least 25% of the day the first year and 15% the second and third year.
A modification was introduced in the regulation of such contracts which will increase the maximum amount of bonuses from it and it will include an incentive to minorar the inherent costs of the need for a tutor for workers with these contracts .
News on the contracts in practice
These contracts enjoy a 50% reduction in contributions for common contingencies which pays the company. Now an additional bonus of 50% to another company contributions to Social Security for common continencias, so the bonus will reach now 100% of the contribution.
Currently this contract allows a reduction of 100% of contributions for companies with less than 250 employees and 75% for 250 or more workers and there is a bonus of up to 25% for the training activity, which should be as least 25% of the day the first year and 15% the second and third year.
A modification was introduced in the regulation of such contracts which will increase the maximum amount of bonuses from it and it will include an incentive to minorar the inherent costs of the need for a tutor for workers with these contracts .
News on the contracts in practice
These contracts enjoy a 50% reduction in contributions for common contingencies which pays the company. Now an additional bonus of 50% to another company contributions to Social Security for common continencias, so the bonus will reach now 100% of the contribution.
News on part-time contracts with training link
Previously the gorvenment launched a reduction in the employer contribution for common contingencies of 75% for companies with more than 250 workers and 100% for the rest. To apply this bonus for a maximum period of 12 months, workers should be unemployed under 30 years without previous employment and work experience with less than three months, or came from another professional sector, employment and training compatible.
The change in this type of contract would extend this incentive to enrollees in the National System of Youth Guarantee, ie under 25 or 30 in case of disabled with a 33% rate or higher..
Previously the gorvenment launched a reduction in the employer contribution for common contingencies of 75% for companies with more than 250 workers and 100% for the rest. To apply this bonus for a maximum period of 12 months, workers should be unemployed under 30 years without previous employment and work experience with less than three months, or came from another professional sector, employment and training compatible.
The change in this type of contract would extend this incentive to enrollees in the National System of Youth Guarantee, ie under 25 or 30 in case of disabled with a 33% rate or higher..
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