Recently, the Act of Urgent Measures for Growth, competitiveness and Efficiency has entered into force, which introduces labor and social security reforms that affect different subjects, being their ultimate goal the correction of imbalances and the improvement of competitiveness.

This article will focus on measures affecting young people, for whom the new law implements a National Youth Guarantee System (Sistema Nacional de Garantía Juvenil).

This Sistema Nacional de Garantía Juvenil is a data base in which interested persons can have themselves registered and, subsequently, it can be used for monitoring and evaluating of results.

For instance, when companies sign a permanent contract with a young person registered in this system, they will get a monthly bonus of €300 over the course of 6 months. If it is a part-time job, the workday must be at least 50% of the workday of a comparable full-time worker, and the bonus will range from € 150 to € 225.

This bonus can only be applied once for each young person registered in the system. And it is compatible with the other incentives (such as the tarifa plana), if the amount of the levy of the company or self-employer is not in negative.

The bonus of the levy of the company to Social Security increases by 50% when the hiring method is a training contract.

And with regards to external work experience of college students and vocational training, they will benefit from a 100% bonus on contributions to Social Security.

These are just some of the measures introduced by the new Law (Ley de medidas urgentes para el crecimiento, la competitividad y la eficiencia). If you require further information please contact us.