On the 30th of July 2019, the Governing Council of the Community of Madrid approved the regulation on the granting of aid under the “My first job” programme. The agreement was published in the BOCM (Boletín Oficial de la Comunidad de Madrid) last August 20th.
These subsidies of this program are aimed at companies that hire young people under 30 years registered in the file of the National System of Youth Guarantee. The aim is that young people can access their first work experience or re-enter the labour market if they are long-term unemployed.
The “My first job” programme provides a series of economic incentives for hiring companies. These grants can be applied for throughout the year provided certain conditions are met.
“My first job”. Incentives for companies hiring persons under the age of 30
For access to the first job, a subsidy of 1.000€ per month will be paid for wage costs and social security contributions. In order to do so, companies must hire a profile under 30 years of age registered in the National Youth Guarantee System. These people may lack work experience or be long-term unemployed young people.
The total amount of the subsidy will be increased by 500€ if the people hired are women or trans people. In the latter case, the terms defined in art. 1.2 of Law 2/2016 on Identity and Expression of Gender and Social Equality and Non-Discrimination of the Community of Madrid apply.
The contracts established to benefit from this subsidy from the Community of Madrid must be of a fixed duration. The minimum requirement for these contracts is 6 months.
In addition, if the fixed-term contract is converted into an indefinite full-time contract, the subsidy will be increased to a maximum of 3,000€ for each employment contract.
Conditions and requirements for “My first job” grants
Subsidies under the My First Job programme exclude entities, organizations and institutions that are part of the public sector. Always in the terms established in art. 3 of Law 9/2017 on Public Sector Contracts.
Neither are they intended for Civil Societies, CB, groups of natural or legal persons or any other type of economic unit or separate patrimony that does not have its own legal personality.
The general requirements to be met by the persons hired at the time the fixed-term contract is formalised are:
- Be under 30 years of age.
- Have residence in the Community of Madrid (official census).
- To be registered as a person, in a beneficiary situation, in the file of the National Youth Guarantee System.
- Have no work experience or be a long-term unemployed young person. In the latter case, at least 180 days of unemployment must be fulfilled in the last year.
For the purposes of this incentive programme, a long-term unemployed young person is understood to be one who, being registered as unemployed in an employment office of the Community of Madrid at the time of hiring, accredits, in turn, a period of registration as an unemployed person seeking employment in an office of the public employment services of at least 180 days during the 360 days immediately prior to hiring.
Subsidy limits
Each company will be able to process a maximum of ten grants for contracts made in each calendar year. To this end, the temporary contract must lead to a net increase in the level of employment of the company.
In order to calculate this increase, the average number of workers registered in the six months immediately prior to the conclusion of the contract for which the aid is requested will be taken as a reference, according to the information contained in the databases of the Social Security Treasury, referring to all the company’s contribution account codes within the Community of Madrid.
The submission of applications must be processed within a maximum period of one month from the date of registration of the worker in the corresponding Social Security system. If you have any queries, please contact our Labour Consulting Department.
Arrabe Integra
Labour Consulting Dept.
