• Four out of ten young people who went unemployed in 2022 in the EU are Spanish

The Government has modified the

employment incentives

with which it rewards companies that hire certain types of groups.

On the one hand, it has put an end to many reductions that have proven ineffective in promoting the employment of these people and, on the other, it has approved

new bonuses

designed to help especially

young people without training,

the

long-term unemployed

and

women

.

The reform, approved this Tuesday in the Council of Ministers, complies with

reform 7

committed to Brussels in Component 23 of

the Recovery Plan

, in which the Government has already advanced to the European Commission that it would end all the bonuses that have not resulted useful in promoting employment.

To date, there was not a single standard in Spain that included all the regulations on incentives for contracting, but rather these were scattered in different laws.

The Government

has unified all of them under a single standard

.

The main novelty is that

companies

that now benefit from any type of hiring incentive will have the

obligation to keep that worker in employment for at least three years

and that these incentives will only reward

indefinite hiring.

"Before we had a bonus that rewarded the transformation into permanent contracts, but

this is a system failure

and it will disappear. We will not reward temporary contracts to take it to permanent contracts, there will not be any bonus of this type except one in the sector agriculture", explained

Yolanda Díaz

, Second Vice President and Minister of Labor at a press conference after the Council of Ministers.

The minister explained that hiring incentives were previously understood as

lowering labor costs,

but from now on they must be understood as an instrument to

improve the employability

of groups that have enormous difficulties finding work.

New bonuses

have been created

: one to encourage the hiring of

young people with low qualifications

and that will provide companies that hire them

with 275 euros per month

for three years;

another of

138 euros

per month for three years for

cooperatives

that hire permanent workers or partners;

and one more, for

companies in the agricultural sector

that transform temporary contract workers into discontinuous permanent ones.

This last bonus discriminates by gender: if the worker who becomes permanent is

a woman

, the company will take

73 euros

per month;

while if he is

a man

he will take

55 euros.

All these incentives will be reduced in the event that the contracts are

part-time,

although the maximum reduction allowed to qualify for the bonus will be 50% of the full-time working day, unless it is a case allowed to reconcile.

The Executive has decided that the

reinstatement of workers

will also be discounted in three cases: those who have left the company due to permanent or absolute

disability

as long as they do not have the recognized right to reinstatement, who are over 55 years of age and have permanent disability and are reincorporate in another category, or who are over 55 years of age and recover their capacity.

Changes to Existing Incentives

In addition to approving these three new incentives, the Government has modified others that were already operational, such as those that sought to encourage the indefinite hiring

of long-term unemployed

- that is, those workers who have been looking for work for more than a year.

If before this bonus was for those over 50 years of age, now the Government will grant it to everyone over

45 years

of age and, in this case, it is also discriminated by gender: the company will take

128 euros per month

if the employee is a

woman

and

110

euros if it is a

man

.

The bonus for hiring

people in a situation of social exclusion is also modified,

which goes from 55 to

128 euros

per month, both for men and women.

With respect

to the alternating training contract,

from now on it will have

bonus amounts,

instead of percentages, equivalent to those that would result from applying

75% to the unique business fees

provided for this contract and 100% depending on the size of the company;

while the bonuses for the transformation of training contracts into indefinite ones are increased by 200% to equal those of the transformations of alternating training contracts.

From now on,

companies with less than 50 workers

will also be able to benefit from these last two bonuses.

Another change affects the bonuses for companies that hire

staff to make substitutions

, since from now on

they will only remain in force if the person hired is young

.

The incentive will last for the duration of the substitution.

The incentives for hiring people with disabilities

remain unchanged

, a group that initially complained about the possibility that their bonuses would be eliminated;

victims of

gender violence

or victims of sexual violence.

The new rule will enter into force in

September

and establishes that

the new incentives will be evaluated

periodically

: if they work they will be maintained and, if they are not effective, they will be withdrawn.

According to the criteria of The Trust Project

Know more

  • Minister council

  • European Comission

  • Employment

  • Nadia Calvino

  • ERTE

  • Yolanda Diaz