On September 1st, the new bonuses for employment contracts, contemplated by Royal Decree-Law 1/2023, of January 10th, on urgent measures regarding incentives for employment contracts, come into effect.
We would like to inform you that a series of new subsidies will come into effect on September 1st, which companies that hire artists will be able to take advantage of. These subsidies are based on Royal Decree-Law 1/2023, of January 10th, on urgent measures regarding incentives for hiring artists and improving social protection for artists.
These new bonuses aim to encourage the hiring of unemployed people, with a special focus on the most vulnerable, as well as to incentivize permanent contracts to contribute to maintaining stable employment.
Which companies are eligible for contract bonus benefits?
All employers, with the exception of public administrations, may be eligible for the bonuses and incentives on social security contributions, provided they meet the established requirements.
The requirements to be eligible for contribution bonuses
To be eligible for hiring bonuses and incentives, companies or beneficiaries must meet new conditions, especially those related to maintaining employment. The following requirements must be met:
- Be up to date with tax obligations.
- Be up to date with your obligations to Social Security.
- Not having been disqualified from obtaining public subsidies and aid and from enjoying tax or social security benefits and incentives.
- Not having been excluded from access to aid, subsidies, bonuses for the commission of serious or very serious offenses in accordance with the Law on Infringements and Sanctions in the Social Order.
- Having an Equality Plan for companies with more than 50 employees (This requirement will be considered fulfilled with the mandatory registration in a public registry, in accordance with the provisions of article 11 of Royal Decree 901/2020, of October 13, which regulates equality plans and their registration and modifies Royal Decree 713/2010, of May 28, on the registration and deposit of collective agreements and work agreements).
- The recipient of the incentive must be retained for at least three years from the start date of the contract or its conversion. For the purposes of measuring job retention, the following will not be taken into account: terminations for objective reasons, undeclared or unfairly recognized disciplinary dismissals, collective dismissals, resignation, retirement, death, disability, completion of the probationary period, expiration of the training contract, end of the call-up period for a fixed-term intermittent contract, and contracts of disabled individuals from special centers who are subsequently hired by a company. If the job retention requirement is not met, the company must repay all the benefits applied to the social security contributions, plus surcharges and late payment interest.
Who can be eligible for subsidized contracts?
The people targeted by employment contracts are those considered most vulnerable. A distinction is made between the beneficiaries of different measures: incentivized employment contracts, other programs or measures to promote and maintain employment, and employment promotion measures.
Those eligible for incentivized employment are priority individuals registered with public employment services as unemployed job seekers. It should be noted that women who are victims of gender-based violence are exempt from this registration requirement.
Also eligible are workers whose contracts are converted into permanent contracts under the circumstances described above, and finally, those whose employment is improved by converting part-time permanent contracts into full-time permanent contracts. These same individuals may also be eligible for other employment promotion and retention programs or measures when they are financed through social security contribution reductions, and for those programs designated by the Public Administration when they are financed through certain public subsidies.
Regarding the beneficiaries of the employment promotion measures, the list is more comprehensive, longer, and more detailed. The following groups have been defined:
- People requiring priority attention
- People with disabilities
- People with disabilities who face greater difficulties accessing the labor market: people with cerebral palsy, with mental health disorders, with intellectual disabilities or with autism spectrum disorder, with a recognized degree of disability equal to or greater than 33 percent; as well as people with physical or sensory disabilities with a recognized degree of disability equal to or greater than 65 percent.
- People at risk of or in situations of social exclusion
- Women victims of gender violence
- Women victims of human trafficking, sexual or labor exploitation, and women in prostitution contexts.
- Women victims of sexual violence
- Victims of terrorism
Exclusions
The hiring incentives will not apply in certain cases, such as contracts made with employees who in the previous twelve months have provided services in the same company in an indefinite employment relationship - or in the last six through a fixed-term contract or a training contract - or workers who have left with an indefinite employment contract for another employer within a period of three months prior, except in cases of unfair or collective dismissal.
Social Security contribution bonuses
The benefits and incentives for hiring are established in bonuses that will be applied with respect to the amount of employer contributions, to the contribution to Social Security for common contingencies and for professional contingencies, as well as to the contribution for the concepts of joint collection of unemployment, Wage Guarantee Fund and professional training, having as a limit, in any case, 100 percent of the amount of said contributions.
Below is a summary table of the bonuses, differentiating between the type of contract and specialty:
«View summary table»
You can contact this professional office for any questions or clarifications you may have.
Warm regards,
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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