Spain is attempting to stop the spread of youth unemployment with a series of temporary incentives laid out in Royal Decree-Law 4/2013. We highlight the following:
- Incentives for part-time contracts compatible with other training courses, even when the training is unrelated to the position. The reduction in the contribution can be as significant as 100% (75% for companies with more than 250 employees), during 12 months, and extensions may be granted. The employee must be under the age of 30 and meet a series of requirements established by the provision.
- Small companies (9 employees or less) who hire an unemployed person under the age of 30 with an indefinite contract, and that meet a series of requirements, shall benefit from the same 100% reduction on the first year of Social Security contributions.
- A First-time Employment Contract for Youth, a new temporary contract for individuals under the age of 30 with little or no experience has been created. It has a term of between 3 and 6 months and includes discounts on Social Security contributions if the employees are made indefinite.
- Students under the age of 30 can be hired as trainees, regardless of when they finished their studies. Furthermore, they entitle the company to a 50% discount on company Social Security contributions for the entire term of the contract.
- Companies can hire students through temporary employment agencies for a maximum of 3 years with the favorable conditions of the contracts for training and apprenticeships. The TEA will take sole responsibility for the training obligations for these types of contracts.
For any further information, please contact Ana Gómez. [email protected]