Lower flat Social Security rate for permanent hires in 2014

Automatic summary, not yet reviewed

1. Companies that hire workers on permanent contracts pay a reduced flat Social Security contribution for common contingencies: €100 per month for full-time hires, or €75 or €50 per month for part-time hires depending on the hours worked. It applies to contracts signed between February 25, 2014 and December 31, 2014, for 24 months.
2. Companies with fewer than ten workers also get a 50% reduction during the 12 months after those 24. To qualify they must meet requirements: be up to date on payments, increase net employment and keep it for 36 months, and not have made unfair dismissals or collective layoffs in the previous six months.
3. The measure does not apply to the employer's relatives, special employment relationships, special contribution systems, or people who already worked at the same company. It also does not cover complementary hours of part-time contracts. If requirements are not met, the savings must be repaid, with surcharges and interest except in the job maintenance case.
4. The rule takes effect the day after its publication in the Official State Gazette (Boletín Oficial del Estado).

Who it affects

• Companies making permanent hires between February 25 and December 31, 2014: They can pay only €100, €75 or €50 per month in common contingency contributions for each new permanent hire, if they create net employment and keep it.
• Companies with fewer than ten workers: They get an extra 50% reduction during the 12 months after the first 24.
• Workers hired on permanent contracts in that period: Their permanent full-time or part-time contracts can qualify the company for the reduced rate.
• Employers' relatives and self-employed workers who hire their children: The hiring of children under 30 (or older with special difficulties entering the job market) of self-employed workers is excepted and can qualify for the reduction.
• General Treasury of Social Security and Labor and Social Security Inspectorate: They check that requirements are met and demand repayment if the reduction was wrongly applied.

Words worth knowing

Contingencias comunes (common contingencies)

The part of the Social Security contribution that covers regular illness and accidents, not work-related ones.

Despido colectivo (collective dismissal)

Laying off many workers at once for economic, technical or organizational reasons at the company.

Extinción del contrato por causas objetivas (contract termination for objective causes)

Ending the contract for reasons related to the company or the job, not the worker's conduct.

Horas complementarias (complementary hours)

Extra hours that a part-time worker can do voluntarily or by agreement.

Interés de demora (late payment interest)

A surcharge paid when money is handed over later than due.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries