Types of subsidised contracts in Spain
In Spain there are several types of subsidised contracts that represent an opportunity for companies. It is important to know both the options and the conditions for benefiting from subsidies, and below we analyse these contracts and the benefits established.
How contracts are subsidised in Spain
Subsidised contracts for companies are labour agreements in which the State or regional and municipal entities offer economic incentives to companies that hire certain groups of workers. These incentives can take various forms, such as reductions in social security contributions, tax exemptions or direct subsidies.
The purpose of these programmes is to encourage the hiring of certain groups, such as young people, people with disabilities, the long-term unemployed or people at risk of social exclusion, among others. In exchange for these incentives, companies undertake to comply with certain requirements established by the authorities, such as maintaining employment for a minimum period or providing specific training to the workers hired. In this way, subsidised contracts for companies seek to boost the employability and labour inclusion of vulnerable groups in society.
Current types of subsidised contracts
In Spain there are several types of subsidised contracts that offer economic incentives to companies that hire certain groups of workers. The following are some of the most common types:
- Contract of alternating training: This type of contract is aimed at young people over 16 and under 30 years of age who do not have the necessary training or work experience. Companies that hire workers under this type of contract can benefit from a subsidy of €91 per month, during its duration and including its extensions, and €28 per month in the worker’s contributions.
- Internship contract: This contract is designed to offer work experience to people who have obtained a university degree, vocational training or professional certificate. Companies that convert internship contracts into permanent contracts receive a bonus. 128 per month for 3 years. In the case of women, the bonus will be €147 per month.
- Indefinite-term contract to support entrepreneurs: This contract is aimed at companies with fewer than 50 employees that hire young people under 30 years of age, people over 45 years of age, the long-term unemployed, people with disabilities or women victims of gender violence on an indefinite-term basis. Companies can benefit from a reduction in Social Security contributions during the first three years of the contract.
- Contracts signed by insertion companies: This contract is aimed at people in a situation of social exclusion who are participating in employment programmes. Companies can benefit from a reduction in Social Security contributions for a certain period of time.
Notifying the SEPE of a subsidised employment contract
To notify the Servicio Público de Empleo Estatal (SEPE) of a subsidised contract, the employer company must follow a specific process. First, the company must have a user account on the SEPE’s online platform, known as the Labour Recruitment System (SCL). Once inside the SCL, the company must complete the form corresponding to the type of contract made, including the worker’s details, the duration of the contract and the applicable bonuses.
Subsequently, the company must attach the necessary documentation supporting the rebate applied to the contract, for example the training agreement or the accreditation of the worker’s unemployment status. Once the notification process is completed, the company will receive a summary of the notified contract and, if necessary, the SEPE will carry out the relevant checks before validating the rebate applied.
It is important that the company keeps the documentation related to the notified contract for possible subsequent checks by the SEPE.
At Asesoría Orihuela Costa we advise you on all processes related to the hiring of your company. The hiring of employees and the creation of contracts is one of the most complex administrative aspects in a company, our team not only carries out the necessary procedures to complete the hiring, we also collaborate with you so that your company can benefit from tax deductions and direct aid related to hiring.
