On Friday February 27, in the Council of Ministers, the Government approved certain measures announced in the previous debate of the Nation

These measures have been collected by the RD-Law 1/2015, of February 27, second chance mechanism, reduced financial burden and other measures of social order, published in the Official Gazette of February 28.

In this summary we focus on the measures of Chapter II concerning to the promotion of employment in the field of Social Security, which are two:

1) Free quote minimum to favour the creation of indefinite-term employment (art. 8 Decree Law 1/2015)

A new incentive for permanent contracts, of progressive states:

  1. Hiring full time: exempted from the employer contribution the first 500 euros of the contribution base for common contingencies, applying the rate applying to the rest of the base.
  2. Hiring part-time: working hours and at least 50% of a comparable full-time worker, those 500 euros will be reduced proportionately.

Applicable: Over a period of 24 months from the effective date of the contract.

However, during the 12 months following these 24 companies to conclude the contract with fewer than 10 workers are entitled to retain the exemption for trading for the first 250 euros of the contribution base (or proportional amount if the contract is part time).

To: Permanent contracts concluded in writing between 1 March 2015 and 31 August 2016.

Requirements for companies to benefit from the incentive

– Be current in meeting their tax and Social Security, both at the date of registration of workers and during application of the benefit obligations.

– Do not be extinguished employment contracts in the previous six months, for objective reasons, for disciplinary dismissals declared legally irrelevant or collective redundancies unadjusted declared unlawful.

– Celebrate permanent contracts involving an increase both the level of permanent employment and the level of total employment in the company.

– Hold for a period of 36 months from the date of effect of the contract, both the level of permanent employment as the level of total employment reached.

Failure to comply with this requirement results in bonus without effect and reinstatement in different percentages depending on the elapsed time.

– There have been excluded from access to the benefits of employment programs.

The benefit applies also who incorporated as worker-members or work of the cooperatives that have opted for a system of Social security of workers employed, as well as those who join as worker-members of the labour enterprises

Cases where not applicable:

It does not apply to special labour relations; the recruitment of the spouse, parents, children and other relatives by consanguinity or affinity up to the second degree, the employer or those with corporate control, holding directive or members of the governing bodies of the entities or companies that take the legal form of companies as well as those produced with the latter; the hiring of workers whose activity determine inclusion in any special system of the General Scheme; to hiring hired before in other companies of the same group workers, etc.

This benefit is incompatible with any other benefit in trading, with the following exceptions:

– If the indefinite contract is concluded with beneficiaries of the National System of Youth Guarantee shall be compatible with the bonus provided for in Article 107 of Law 18/2014, of 15 October, approving urgent measures for growth, competitiveness and efficiency.

– If the indefinite contract is concluded with beneficiaries Activation Program for Employment will be compatible with accompanying financial support they receive, under the terms provided in Article 8 of Royal Decree-Law 16/2014, of December 19, by which regulates the Activation Programme for Employment.

  1. Bonus self-employed workers by reconciling work and family life linked to recruitment (art. 9 RD Law 1/2015)

This new bonus to self-employed or self articulates a new Article 30 is added to the Law 20/2007 of July 11 of the Statute of self-employment.

Consists of a bonus of 100% of the autonomous quota for common contingencies, that is applied to the base media that the worker had in the 12 months prior to the date in which avails this measure the minimum contribution rate of existing contributions at each time established in the aforementioned special regime, in any of these cases:

– Caring for children less than 7 years in charge.

– Be responsible relative, by consanguinity or affinity to the second degree, in situations of dependency, duly accredited.

The self-employed must meet two requirements:

– Stay on high in this special scheme not only for the enjoyment of the bonus but also during the six months following the expiration of such enjoyment.

– Hire a worker, full or part time, and keep it throughout the period of his enjoyment. Please note:

  • If the employment relationship and the self-employed hire another worker within a maximum period of 30 days expires, you can take advantage of the bonus.
  • The part-time contract must be at least one day 50% of that of a comparable full-time worker and the bonus is 50%.
  • They should not have employees at the beginning of the implementation of the bonus and during the twelve months preceding the same workers.

If you breach the requirements, the self-employed must repay the subsidy enjoyed.

It applies for: a period of more than twelve months.

In any case, the duration of the contract must be at least 3 months from the start date to enjoy the bonus.