Subsidies for the hiring of personnel in 2024
As in every fiscal year, the Department of Economy, Finance and Employment of the Community of Madrid, allocates various budget items for the direct granting of subsidies, aimed at promoting the hiring of workers in the different lines.
For this fiscal year 2024, lines 2, 3 and 4 of the program for the promotion of hiring in the scope of the Community of Madrid have been allocated with the following distribution (€14,500,000):
- Line 2: Stable hiring of young people: €11,500,000.
- Line 3: Promotion of the training contract to obtain the appropriate professional practice for young people: €1,500,000.
- Line 4: Promotion of alternating training contracts for young people: €1,500,000.
In addition, the allocations for lines 5 and 6 have been renewed.
Self-employed workers, companies and non-profit private entities are eligible for these hiring incentives. They must be up to date in the fulfillment of their tax and Social Security obligations, and the work center where the hired person renders his/her services must be located in the Community of Madrid.
Line 1: Incentives for the indefinite-term hiring of unemployed persons requiring special attention
Amount of aid:
- €5,500 for the initial full-time indefinite-term hiring of each unemployed person over 30 years of age belonging to one of the following groups:
- Long-term unemployed persons
- Returning workers from abroad to the Community of Madrid.
- €5,500 for the initial full-time indefinite-term contracting of unemployed persons registered as job seekers and aged between 45 and 54 years old inclusive.
- Also, €7,500 for the initial full-time indefinite-term contracting of each unemployed person belonging to one of the following groups:
- Persons over 30 years of age who are very long-term unemployed.
- Persons over 45 years of age who are long-term unemployed.
- Persons over 55 years of age who are unemployed and registered as job seekers.
- €7,500 for the initial indefinite-term full-time hiring of each unemployed person, of any age and group, who works in a work center located in a rural municipality of the Community of Madrid with less than 5,000 inhabitants, according to the last official statement of population figures resulting from the revision of the municipal census, published in the calendar year prior to the date of hiring.
Line 2: Incentives for the stable hiring of young people
Amount of aid:
- €5,500 for the indefinite full-time hiring of each unemployed person under 30 years of age who is listed as a beneficiary in the National Youth Guarantee System File and appears as an unemployed job seeker in any of the employment offices of the Community of Madrid.
Line 3: Promotion of the training contract to obtain the appropriate professional practice for young people
Incentives for the hiring of young unemployed people through a training contract to obtain the appropriate professional practice.
- €4,500 for the full-time hiring, through a contract to obtain the appropriate professional practice, of each unemployed person under 30 years of age who appears as a beneficiary in the National Youth Guarantee System File and appears as an unemployed job seeker in any of the employment offices of the Community of Madrid.
- To formalize this type of contract, the person hired must be in possession, at the time of formalization of the contract, of a university degree or an intermediate or higher degree, specialist, professional master’s degree or certificate of the vocational training system, in accordance with the provisions of the Organic Law 5/2002, of June 19th, on Qualifications and Vocational Training, as well as those who hold an equivalent degree of artistic or sports education of the educational system, which enable or qualify for the exercise of the labor activity, in the terms established in Article 11.3 of the rewritten text of the Law of the Workers’ Statute, approved by Royal Legislative Decree 2/2015, of October 23rd.
Line 4: Promotion of training contract in alternation for young people
The person hired must lack the professional qualification recognized by the qualifications or certificates required to enter into a training contract for obtaining professional practice regulated in Article 11.3 of the revised text of the Law of the Workers’ Statute, approved by Royal Legislative Decree 2/2015, of October 23rd.
Amount of hiring incentives:
- €5,500 for the full-time hiring, through an alternating training contract, of each unemployed person under 30 years of age who appears as a beneficiary in the National Youth Guarantee System File and appears as an unemployed job seeker in any of the employment offices of the Community of Madrid.
Line 5: Incentives for the promotion of the hiring of people with disabilities and other especially vulnerable groups
Incentives for indefinite-term contracts through the initial hiring of people with disabilities registered as job seekers in an employment office of the Community of Madrid, and other especially vulnerable groups.
Incentives for indefinite-term contracts through the transformation of temporary contracts into indefinite-term contracts of people with disabilities and other especially vulnerable groups.
Amount of the hiring incentives:
- €5,500 for each initial indefinite-term contract or transformation into indefinite-term of a temporary contract of people with disabilities who have a recognized degree of disability equal to or greater than 33%.
- €7,500 for each initial indefinite-term contract for people with disabilities who present greater difficulties in accessing the ordinary labor market, people with disabilities coming from a labor enclave, women victims of gender violence, victims of human trafficking, victims of terrorism and people in a situation or at risk of social exclusion.
- €9,500 for each initial indefinite-term contract of people with disabilities coming from a labor enclave who present greater difficulties for access to the ordinary labor market.
Line 6: Incentives for hiring people participating in insertion itineraries
Incentives to promote the hiring of people participating in insertion itineraries in insertion companies, or in an employment program managed by the General Directorate of the Public Employment Service, registered as job seekers in an employment office of the Community of Madrid.
Amount of the hiring incentives:
- €2,600 for insertion companies and non-profit entities for each insertion achieved in the ordinary market, when the hiring is equal to or longer than twelve months, without being able to have a duration of less than 6 months.
The amounts of the above lines will be increased in the following cases:
- An additional €500 in the cases provided for in the regulatory rules of these subsidies.
- For self-employed workers who hire their first employee, an additional aid of €2,000 is contemplated, which will be added to the corresponding amount according to the profile of the person hired.
In the case of part-time contracts, the above amounts will be reduced proportionally according to the established working day. The part-time working day may not be less than 50% of the working day of a comparable full-time worker.
If you have any doubts or need help in applying for any of these hiring incentives, please contact our HR Management expert team.