Hiring incentives in force in 2021

Although in recent years incentives in social contributions have been reduced, they continue to exist in good numbers, both for permanent and temporary contracts. We explain the options available to you.

Incentives for indefinite-term contracts

Unemployed. If your company signs an indefinite-term contract with a worker who has been unemployed and registered at the Employment Office for at least 12 months of the previous 18 months, you can apply a rebate on your contributions. Specifically:

• The bonus is 1,300 euros per year for three years if a man is hired (1,500 if a woman is hired).
• In part-time contracts the bonus will be proportional to the agreed working day.
• The employee must be retained for at least three years, and the level of employment achieved must be maintained for at least two years.

Conversion. The conversion of certain contracts into indefinite-term contracts allows the application of bonuses. See the most common cases:

• Companies with less than 50 employees can apply a bonus of 500 euros per year (700 euros in the case of women) for three years if they convert an internship or relief contract into an indefinite-term contract.
  
• The conversion of a training and apprenticeship contract into a permanent contract allows the application of a contribution rebate of 1,500 euros per year for three years (1,800 euros in the case of women).

Relatives of the self-employed. The self-employed can apply a rebate if they hire family members as employees and register them in the General Regime:

• The bonus is applied for the indefinite-term hiring of the spouse, ascendants, descendants and other relatives by blood or affinity up to the second degree.
• The bonus, which lasts 12 months, is 100% of the employer’s contributions for common contingencies.

Incentives for temporary hiring

For training. If you sign a training contract with an unemployed person, you can apply a 100% bonus of the contributions, or 75% if you have 250 or more workers.

Interim. If your company needs to replace an employee, the interim contract entitles you to bonuses in some cases:

• The hiring of an unemployed person to replace an employee on maternity or paternity leave entitles both employees to a 100% bonus.
  
• Hiring a person who has been collecting unemployment benefits for more than one year to replace employees on leave of absence for child or family care entitles the interim contract to a bonus (95%, 60% and 50% for the first, second and third year, respectively).

Incentives for contracts for people with disabilities

Indefinite-term contracts. The indefinite-term hiring of a person with a disability entitles the holder to a monthly bonus of 375 euros (4,500 euros per year) during the entire term of the contract. The incentive is higher for people 45 years of age or older, or for women (among other cases).

Temporary contracts. In temporary contracts, the bonus is 3,500 euros per year during the whole term of the contract (bonus that is increased in some cases). And if you sign an interim contract with an unemployed disabled person to replace disabled persons in IT, a 100% bonus of the contributions is applied.