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On the 1st of March Royal Decree-Law 3/2014 of 28th of February entered into force regarding urgent measures to impulse employment.
This regulation sets out substantial reductions in contributions borne by the employer to the Social Security system.
A) Amount of the reductions:
The quota for common contingencies shall be as follows:
- 100 Euro per month for full time employment agreements.
- 75 Euro per month for part time employment agreements.
- 50 Euro per month for part time employment agreements, depending on the daily working hours (which must amount to at least 50% of full time working hours).
B) Applicable term for the reductions:
Generally speaking, 24 months; however, employers with less tan 10 workers will be entitled to obtain a 50% reduction in quotas for an additional period of 12 months.
C) Eligible employers:
- The applicant must meet a number of conditions precedent, such as being up to date in payments to the Inland Revenue and the Social Security System.
- For a period of 3 years, the applicant must maintain levels of permanent employment and global employment within the company.
- The employment agreements must be of a permanent nature.
The Royal Decree-Law sets out a number of exceptions to the application of the said reduced contributions. For instance, reductions shall not apply to employment agreements affecting a spouse, ascendants, descendants or relatives up to the second degree of consanguinity of the employer or those individuals in control of the employer company.
For more information,please contact:
Eduardo VILÁ: firstname.lastname@example.org/en