Incentives for employment contracts

On 11 January last, RDL 1/2023 was published, the aim of which is to simplify the system of incentives for hiring and increase its effectiveness through better targeting. To this end, the following reductions in Social Security contributions are established, effective from 1 September 2023:

Indefinite-term contracts

• People with limited intellectual capacity: €128/month for 4 years.
• Women victims of: gender violence, sexual violence and human trafficking; €128/month for 4 years.
• People in a situation of social exclusion:
  • In general: €128/month for 4 years.
  • If the worker hired has completed an employment contract with an insertion company during the previous 12 months, has not subsequently provided services as an employee for a period of more than 30 days for another employer after leaving the insertion company and is hired on an indefinite-term basis by an employer that does not have the status of an insertion company or special employment centre: €147/month for a maximum period of 12 months. At the end of this 12-month period, the general bonus is applied until 4 years have elapsed.

• Long-term unemployed: €110/month or €128/month for women or people aged 45 or over, for 3 years.
• Victims of terrorism: €128/month for 4 years.
• Young people under 30 years of age with low qualifications and who are beneficiaries of the National Youth Guarantee System (contracts signed between 1-9-2023 and 1-9-2024): €275/month, for 3 years.
• Indefinite-term contract or incorporation as a partner in the cooperative or labour company of people who carry out practical training in companies: €38/month for a maximum period of 3 years, unless the worker hired is a person with a disability, in which case the bonus may be applied for the entire duration of the contract.

Training contracts

• Training contract in alternation: 91 €/month. It also entitles the worker to a subsidy of €28/month on the worker’s Social Security contributions and for joint collection concepts.
• Transformation of training and relief contracts into indefinite-term contracts: €128/month or €147/month, in the case of women, for 3 years.
• Conversion of relief contracts into indefinite-term contracts: €55/month, or €73/month in the case of women, for the following 3 years.
• Training contract in alternation (rebates on employer Social Security contributions to finance the costs of the training received by the contracted worker):
  • In general: in the maximum amount resulting from multiplying the economic module established by regulation by a number of hours equivalent to 35% of the working day during the first year of the contract, and 15% of the working day in the second year.
  • Formalised with beneficiaries of the National Youth Guarantee System: the amount resulting from multiplying the corresponding economic module by a number of hours equivalent to 50% of the working day during the first year of the contract, and 25% of the working day in the second year.

• Allowance for costs derived from tutoring of workers (applicable to the company’s share of Vocational Training):
  • In general: up to €1.5 per student and tutoring hour, with a maximum of 40 hours per month and student.
  • Companies with less than 5 employees: up to €2 per student and tutoring hour, with a maximum of 40 hours per month per student.

• Recruitment of research personnel under the pre-doctoral contract modality: 115 €/month.

For reconciliation measures

• Fixed-term contracts signed with unemployed young people to replace workers in certain cases: €366/month during the period in which the replacement contract and the respective benefit or, where applicable, temporary incapacity situation overlap.
• Subsidies in the contribution of workers replaced during the situations of birth and care of the minor, co-responsible exercise in the care of the breastfeeding minor, risk during pregnancy and risk during breastfeeding: 366 €/month during the period in which the replacement contract and the respective benefit overlap.
• Change of job due to risk during pregnancy or breastfeeding, as well as cases of occupational illness: €138/month.

Self-employed

• It expressly includes worker or worker-members of cooperative societies included in the RETA as beneficiaries of the rebate on contributions during leave due to birth, adoption, fostering for the purpose of adoption, fostering, risk during pregnancy or risk during breastfeeding.
• The allowance for the indefinite-term hiring by self-employed workers as employees of their spouse, ascendants, descendants and other relatives by blood or affinity, up to and including the second degree, is abolished.

Other bonuses

• Readmission of workers after having left the company due to total or absolute permanent incapacity or permanent disability: €138/month for a period of 2 years, provided that the readmission does not correspond to a right of the workers to return to their job.
• Incorporation of workers as worker or worker-members of cooperatives and worker-owned companies:
  • In general: €73/month for 3 years.
  • Young people under 30 years of age, or people under 35 years of age who have a recognised degree of disability equal to or greater than 33%: €147/month for the first year, and €73/month for the remaining 2 years.

• Conversion into permanent-discontinuous contracts of temporary contracts signed with agricultural workers (carried out between 1-9-2023 and 1-9-2025): €55/month, or €73/month in the case of women.
• Companies in the tourism, commerce and hotel and catering sectors that generate productive activity in the months of February, March and November of each year and that start and/or maintain the employment of workers with permanent-discontinuous contracts during these months: €262/month (during the aforementioned months).
• Companies engaged in activities in the sectors of agriculture, fishing and aquaculture; industry, except energy and water; commerce; tourism; hotels and catering and other services, except fixed-wing air transport, building construction, financial and insurance activities and real estate activities, as well as in other sectors or areas of activity that are legally determined, in the cities of Ceuta and Melilla, with contribution accounts assigned to these companies in which they have workers with permanent contracts who work in these cities: €262/month for the duration of the contracts.

If you have any questions regarding this subject, please do not hesitate to contact us by telephone, Isabel Torre Carazo or by email at itc@btsasociados.com, we will be delighted to help you.