By means of Decree 493/21 (“Decree“) published in the Official Gazette on 6 August 2021, a benefit of reduction of an employer’s social security contributions was established for the case of new hiring of personnel who participate, or have participated, in Educational, Vocational Training or Labor Intermediation Programs of the Ministry of Labor, Employment and Social Security.
Among the main points of the Decree, we highlight:
- Inclusion in the benefit of reduced employer contributions implies a 95% reduction of employer contributions to social security during the first 12 months of employment for new hires who are female, cross-dresser (the law refers in Spanish to transvestite), transsexual, transgender, or persons with disabilities; and a 90% reduction in the case of hiring men for the same period.
- In order for the benefit to be applicable, it must be a new hiring and a person who is participating, or has participated, in one of the professional training programs organized by the Ministry of Labor.
- Through the employment website of the Ministry of Labor, employers wishing to make new hires under the Decree may declare their intention to initiate an active job search process through this platform and, thus, access the benefit of reduced contributions.
- In order to enjoy the benefit of contributions, the new hires must produce a net increase in the payroll of the company with respect to the month of July 2021.
- The financial assistance provided for in the Educational, Vocational Training or Labor Intermediation Programs may be considered on account of the salary of the worker who enters into an employment relationship under the benefit of the Decree.
- The benefit may not be enjoyed in relation to persons affected by any of the following situations: (a) they have, at the time of being hired, a job registered in the social security system, excluding persons participating in labor insertion programs and other programs that allow access to formal employment; (b) they have been declared in the General Social Security System and after the employment termination, whatever its cause, are reinstated by the same employer within 12 months from the date of termination; and (c) they are hired within 12 months from the dismissal, without just cause or on the grounds of lack or reduction of work and force majeure, of another worker in employment with the same employer. The term provided for in items (b) and (c) above shall apply with respect to any event occurring on or after the date of this Decree.
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