Spain's Ministry of Employment announces concessions for employers

 

Spain's Ministry for Employment will suspend the social security payments made by employers on part time work contracts for all new and additional employees. The cabinet agreed to the bill, which applies only to those who are unemployed and under 30 or over 45, last week. It is estimated that this will result in a saving to the business of around €262 per employee.

The Employer will not make any social security payments on behalf of the employee for 12 months, and the Government will forego an estimated €235 million in revenue because of this, if they succeed in meeting their target of creating more than 100,000 new part time positions.

For Businesses that already have a workforce greater than 250 employees, the sadditional staff will see a 75% reduction in social security payments.

Friday's cabinet meeting also agreed to a €400 monthly subsidy for the long term unemployed who don't have earnings of less than 75% of the minimum wage - currently €641,40. This measure is due to apply for 6 months and should help around 192,000 people.