Employers' Social Security payments for staff set at 100 euros a month for two years with clause protecting workers
Wednesday, February 26, 2014 @ 9:55 AM
JOB contracts for new staff at all firms will carry a flat rate of 100 euros a month in Social Security payments made by the employer on behalf of the employee, announced president Mariano Rajoy yesterday (Tuesday) during the first half of the Parliamentary congress dubbed 'the great debate of the nation'.
This type of contract will only be available for companies taking on extra staff and expanding their payroll, not replacing those who have left, in order to prevent unscrupulous bosses from finding reasons to fire existing employees so that they can substitute them with new ones and pay lower Social Security.
The 100-euro-a-month Social Security will continue for the first two years of the new staff member's time with the firm, provided the contract is a fixed, or 'indefinite' one rather than for a temporary placement.
Bosses must keep each of these employees on for a minimum of three years, or they will have to refund the extra Social Security they would normally have paid.
This is designed to act as an incentive to companies to provide job security, something which is sorely lacking now Rajoy's labour reform is in place.
The new system does not allow firms to get rid of staff after three years and take on new workers to fill their places in order to benefit from lower contributions, since this will not happen – they will only be entitled to the reduced payments for additional workers on top of those they already have.
Read more at thinkSPAIN.com