Those who hire a long‑term unemployed person over the age of 45 will save 1,536 euros per year in Social Security contributions. As a result, the Ministry of Labour is lowering the eligibility threshold for public bonuses from 50 to 45 years to help reintegrate this group into the labour market, while slightly increasing the incentive amount.
That is what El Periodico has obtained in the latest draft of recruitment incentives that the Government plans to approve at the Cabinet meeting this Tuesday. People under 30, women, individuals at risk of social exclusion, and victims of sexist or terrorist violence are among the other priority groups highlighted in the royal decree.
Unemployment among people over 45 has doubled since the real estate and financial crisis of 2007. At that time, 5.7% of those over 45 were unemployed; today the rate stands at 10.9%, according to the latest data from the active population survey (EPA).
Many people who lost their jobs during the previous crisis were unable to re-enter the labour market. Since then, they have been a key focus for policymakers when designing active employment strategies, given the reluctance of some companies to hire workers beyond a certain age.
Yolanda Díaz, the second vice president and minister of labour, has taken another step to protect senior unemployed individuals by lowering the requirements to benefit from recruitment incentives. The priority status for those over 45 had already been defined in the Labour Law, approved at the end of December, and it aims to modernize Sepe into a more efficient government service.
On the other side of the age spectrum, the royal decree also provides bonuses for unemployed youth. Companies can receive up to 3,300 euros per year if they hire a low‑skilled person under 30 on an indefinite contract. Another option offers a savings of 366 euros per month when hiring someone under 30 to replace a worker on maternity or paternity leave.
more bonuses
These two groups were the main beneficiaries of the new recruitment incentive package identified by Díaz. Previously, a long‑term unemployed man of any age could access a 1,300‑euro annual bonus. The updated amount now reaches 1,536 euros, representing an increase of 18.15%.
A second priority group in care is women who have been unemployed for a long time, regardless of age. INE data show that four out of ten unemployed women in Spain have been looking for a job for more than a year. The royal decree raises the incentive amount, though to a lesser extent, from 1,500 euros per year to 1,536 euros. For long‑term unemployed men under 45, the benefit rises to 1,320 euros, up 20 euros (1.5%).
In all cases, the royal decree requires companies to hire these groups on a full‑time indefinite contract and to retain them for at least three years. Additionally, unemployed individuals with social exclusion certificates, women who are victims of sexist violence, and female victims of terrorism will be eligible for a 1,536‑euro bonus for four years, one year more than other groups.
Help with interrupted landlines
The royal decree, expected to move the Ministry of Labour to the Cabinet this Tuesday, also includes assistance to companies that extend workers’ daily hours in hospitality, commerce, and tourism sectors with indefinite temporary contracts. This is part of the reform aimed at reducing the casual use of temporary contracts. The challenge for many workers is that they cannot stay employed year‑round, with periods of inactivity despite promises of recall when economic activity returns.
The document, which is accessible to El Periodico, outlines incentives for firms to keep these traditionally weaker workers during certain months of the year. If a company has an irregular permanent record in February, March, and November, a monthly bonus of 174 euros results in a savings of 522 euros in Social Security contributions per season.
Access to all these bonuses remains barred for companies that do not implement equity plans, a requirement for all companies with more than 50 employees since March last year. Official data show this regulation is poorly followed, though noncompliance is viewed as problematic rather than inevitable.