On 4th February the Community of Madrid published the Program of Incentives for the Indefinite Contracting (BOCM 04-02-2019). Including its budgetary credit available for direct concession, during 2019.
The amount of the budget credit available to meet the economic obligations arising from the direct concession of the Program of Incentives for the Indefinite Contracting during 2019 amounts to €12,000,000.
The total amount of this credit will be distributed as follows:
- A maximum amount of €6,000,000 will be used to finance subsidies for initial indefinite contracts.
- Another €6,000,000 will be used to finance subsidies for conversions of training contracts or temporary contracts into indefinite contracts.
Incentives for the Indefinite Contracting. Amounts
These incentives are set at the same amounts as last year, which we have already published. In any case, we would like to remind you of them below:
- Subsidy with an amount of 4,000€. Each initial full-time indefinite contract.
- Subsidy of €5,500. Applicable to each initial full-time indefinite contract. Carried out for people belonging to one of the following groups:
- People over 45 years of age
- Workers returned from abroad to the Community of Madrid.
- Long-term unemployed. Those who can prove a registration period as unemployed persons seeking employment of at least 360 days.
- Subsidy of €7,500. Each initial full-time indefinite contract made to long-term unemployed persons over 45 years of age. As well as each initial full-time indefinite contract made to long-term unemployed persons who can prove a period of uninterrupted registration as unemployed persons seeking employment of at least 24 months.
- The amounts will be increased by 500€ when the person hired is a woman or belongs to the group of transgender people.
- In addition, these amounts will be increased by €2,000 for the first contract made by self-employed workers.
- The subsidy remains at €3,000. For each full-time conversion of a training contract or temporary contract into a full-time indefinite contract. With a minimum validity of six months prior to the date of conversion.
From our Labour Consulting Department we can help you to manage the application of this type of Incentives for the Indefinite Contracting.
Incentives for the Indefinite Contracting. General Requirements.
It may be subsidized the hiring of unemployed by self-employed, companies and private entities that have no profit motive, to provide services in any center of the Community of Madrid.
Applications must be submitted within a maximum period of one month from the date of registration of the person hired in the corresponding Social Security system.
In the case of incentives for initial indefinite hiring, people must be registered as unemployed job seekers in the employment offices of the Community of Madrid. For a period of at least one uninterrupted month immediately prior to hiring. Except in the case of hiring workers returned abroad.
In the case of incentives for the conversion of temporary and training contracts into indefinite contracts, they must be valid for a minimum of six months prior to the date of conversion. And provided that the persons hired carry out their activity in the Community of Madrid.
Only a maximum of ten contracts per beneficiary may be subsidised in each budget year.
Indefinite contracts, as well as conversions to indefinite contracts, must result in a net increase in the company’s level of indefinite employment.
If you are interested in knowing more about these aids, do not hesitate to contact us.
Arrabe Integra
Labour Consulting
