Hiring incentives in Spain

For many companies in Spain, it is important to ensure that the budget is able to accommodate the cost of the new employee upon his/her recruitment into the workforce. This means that the recruitment of the new employee, fundamental though it may be for the company, is often delayed. On this basis, whenever a new employee is recruited into the workforce, it is important to bear in mind the many hiring incentives in Spain that currently exist as they may enable the company to make significant savings.

Whenever a permanent contract is offered, it is important to bear in mind that the main hiring incentives in Spain are intended for groups who experience the greatest difficulty in gaining employment.

Companies with fewer than fifty employees can access the established incentives when they recruit an individual from any of the following groups:

• Unemployed people over the age of 45: The annual incentive will be € 1,300 (€ 108.33 a month) for three years in relation to the employer’s contribution for full-time contracts. In the case of part-time contracts, the coefficient for part-time work will be applied to the incentive.
• Unemployed people between the ages of 16 and 30: This incentive also has a three-year term. In the first year, the incentive is € 1,000 a year in relation to the employer’s contribution; in the second year of the contract, this incentive will be € 1,100; in the final year, it is € 1,300 a year.  In the event of part-time contracts, the same criterion indicated in the previous point applies.

For the purpose of applying both incentives, it is important for the applicant to be registered as a jobseeker as it is one of the requirements for firms to benefit from these hiring incentives in Spain.

Other incentives that should be taken into consideration for filling a job vacancy are those intended to facilitate work/ family life balance.

There are currently incentives for temporary replacement contracts in which the company needs to fill a vacancy, because a person who has requested a leave of absence to care for family members or due to maternity leave, high-risk pregnancy situations, risks during breastfeeding, etc. needs to be replaced.

These incentives have a term of three years. In the case of leave of absence to care for family members, the reduction of the employer’s contributions for common contingencies is 95% in the first year, 60% in the second and 50% in the third.  In the case of temporary replacement contracts for maternity leave, high-risk pregnancies and risks during breastfeeding, the incentive is 100% of the employer’s contribution.  Moreover, in this case, new employees must be registered as jobseekers.

If you are considering recruiting employees into your workforce via Arintass, we can advise you on all the hiring incentives in Spain and, if necessary, the incentive  that is best suited to your needs.

Teresa Abril

Arintass

Corporate Consultants