What is the new aid for self-employed and SMEs that hire young people?

Are you looking for new opportunities to boost your business as a freelancer or SME? We have good news! There is an aid for freelancers who hire young people that provides great benefits for both your business and jobseekers. Here, you will find all the information you need to find out how this aid positively impacts your business. Don’t miss the details!

Aid for self-employed and SMEs: the young labor market is co-financed 

Recently, the Government approved a decree law that introduces several incentives to promote employment. Among them is an aid for self-employed and SMEs (small and medium-sized enterprises). According to this measure, those who hire young people under 30 years of age without qualifications will be able to benefit from a bonus of 275 euros per month for three years.

It is important to note that in order to access it, the young people you hire must be registered in the National Youth Guarantee System. If a contract is signed, it must have a duration of at least 3 years.

That said, this aid for self-employed and SMEs will come into effect as of September. Moreover, it will apply only to indefinite-term contracts. Also, employers using Social Security bonuses will have to comply with a number of additional requirements. 

For example, it is established that the employer must keep the employee in a registered status for at least three years from the beginning of the incentive contract.

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What advantages can you get from this bonus?

The benefits of this aid for self-employed and SMEs are numerous. They can make a big difference for both companies and workers. These advantages offer financial and tax incentives that encourage hiring and business growth.

By taking advantage of bonuses, companies can reduce their labor costs and access additional resources to invest in development. In addition, workers benefit from better salary conditions and employment opportunities. 

In addition to the aid for self-employed and SMEs mentioned above, there are other new measures:

• Companies opting for indefinite-term contracts will receive a maximum grant of €4,800, equivalent to €800 per month. This amount will be granted during the first six months of the contract: the minimum period of permanence required.
• The subsidies may be granted for a maximum of 10 young people per entity or company. In this context, it should be noted that the salary cost of the person hired during the subsidized period must not be exceeded. This measure ensures that the subsidies are equitable and maximize their impact on the generation of employment for young people.
• You will have financial support of 138 euros per month for three years, or for the duration of the contract, for people with disabilities. Whether they are hired on an indefinite basis or join as partners in a cooperative or labor company. This aid for the self-employed and SMEs will be available for those who carry out internship training programs within companies.
• Bonus for companies that transform temporary contracts into permanent discontinuous contracts. All this within the special agricultural system for employees, which will be 55 euros per month.

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Youth participation in this initiative: Who is the target audience?

This year’s aid for self-employed and SMEs has an important filter. Young people who wish to become part of the labor market must meet certain basic characteristics. These are:

The main objective of this aid for self-employed and SMEs is to promote the employability of unemployed young people. Especially for those who, at the time of submitting the application, are not participating in study or training programs.

Eligibility requirements for aid to the self-employed and SMEs 

To access this aid for self-employed and SMEs you must comply with the following rules:

• Commit to maintain the youth hired for a minimum period of three years from the start of the contract. This commitment reflects the importance of youth employment and ensuring job stability for those hired through the program.
• Your business must operate in the European Union or the European Economic Area (EEA). Companies that transfer their industrial or productive activity to territories that are not part of these regions must repay all bonuses received.

In this way, this aid for the self-employed and SMEs promotes the generation of employment. Thus, it contributes to the economic growth of the country. This, in turn, promotes the development of young people and their insertion into the labor market.

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If you are self-employed or SME and you are interested in benefiting from the new aid for hiring young people, we are here to help you! In our consultancy, we take care of all the formalities related to personnel management and we keep you informed about the social news to reduce your costs.

Schedule your free consultation now by writing to our email tasconsultoria@tas-sl.es. Together we will boost the growth of your business.