SUPPORT OF UP TO 23 THOUSAND EUROS TO HIRE YOUNG AND LONG-TERM UNEMPLOYED

According to the notice published by the Institute of Employment and Professional Training (IEFP), the applications can be delivered between 9 a.m. of last Monday and 6 p. m. of July 20.

On the table is a measure under the so-called "Contract-Generation” which combine financial support for the celebration of permanent employment contracts with access to the total exemption regime or partial reduction of the payment of Social Security contributions by the employer.

As an example, with this new measure the employer can benefit from a support of about between 16 thousand and 23 thousand euros, depending on the wage level associated to each contract.

Therefore, by hiring young people looking for the first job and a long-term unemployed, both of whom earn the national minimum wage (600 euros), the support to be granted in the framework of the measure "Contract-Generation” will round the 16 thousand euros over five years. 

This figure compares with a support of around 7800 euros possible in the frame of the "Contract-Employment" and with a saving of approximately 8 thousand euros in Social Security contributions - incentives for contracting that are not cumulative in other way.

In order to benefit from the predicted support, companies will have to ensure and respect the condition of net job creation. According to the Ministry of Labor, Solidarity and Social Security, "the combination of the supports and the consequent reinforcement of the amounts received by employers is possible only when at least one young person and a long-term unemployed are hired within the maximum period of six months ".

Besides the reinforcement of the supports, it is intended to strengthen the focus of the active employment measures for young people and the long-term unemployed, who already represent around 60% of the recipients of the Contract-Employment measure.