The Minister of Employment Fátima Báñez explained the measure in the Congress of Deputies, which will affect those under 30 years of age.
Unemployed young people without training will have direct aid of 430 euros per month and companies that hire them a bonus of up to 400 euros. These are two of the measures that the Government wants to take forward to fight against high youth unemployment, since although it has fallen 15 percentage points it is still above 41 %.
This was explained by the Minister of Employment, Fátima Báñez, in the last control session of the Congress of Deputies held this week, after announcing it in mid-June from Luxembourg.
But on this occasion Báñez went a little further in explaining the proposals, announcing that it would be a "powerful" bonus that will last three years and from which those companies that, after this 18-month training contract, incorporate into their workforce indefinitely to the young people who have received this complementary aid.
The objective of this measure, in the words of the minister, is for unemployed young people to get a "stable and quality" job. However, he could not give more information since it is being negotiated within the framework of the social dialogue table and with the autonomies, so nothing is closed. Of course, the Government's proposal specified an improved bonus compared to the current one in business contributions to Social Security of 250 euros per month for three years, which would amount to 3,000 euros per year. This is additional aid that comes from the Youth Guarantee and would therefore be added to the already existing subsidy, which today is 1,500 euros per year for those who hire young men as permanent contracts and 1,800 more if they are women.
In this way, for those who employ girls, the aid would amount to 400 euros per month.
Aid also for the self-employed.
In addition to companies, self-employed corporate workers who make these training contracts stable once they have ended, either after the first year or after the extension of up to 18 months, may benefit from this incentive. It will also apply to employee members of associated labor cooperatives and labor societies, as well as to integration companies that hire personnel in situations of social exclusion.
On the other hand, and after the controversy generated by this supplement of 430 euros for NEETs, Báñez once again emphasized that it is not salary aid, but rather "direct aid for training" and, therefore, "it will be added to the salary that corresponds to them by agreement.
Thus, at a minimum, these young people will receive 1,138 euros per month divided into 14 payments, since the minimum wage in 2017 stands at 707 euros per month. Young people between 16 and 30 years old who neither study nor work and who are enrolled in the Youth Guarantee Program can benefit from this aid.
To request any information regarding existing aid and subsidies (or in process) for hiring employees, you can contact our office where our experts in tax and labor matters can advise you. You can also contact us through Contact Form, and we will call you.
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