Reductions in company Social Security contributions

April 2014.- The Royal-Decree Law 3/2014 introduces measures to encourage permanent contracting, including a major reduction in the contributions made by companies in Social Security for permanent contracts signed between 25 February and 31 December 2014.

Flat rate €100 Social Security contribution

During the first 24 months of the contract Social Security contributions for common contingencies will be:

  • €100 a month for full-time contracts.
  • €75 a month for part-time contracts corresponding to 75% of a full-time contract.
  • €50 a month for part-time contracts corresponding to 50% of a full-time contract.

Additional reductions for microcompanies

Companies with fewer than 10 workers at the time of signing the contract eligible for reduced contributions have the right to a further reduction at the end of the 24-month period which is equal to 50% of the company Social Security contribution for common contingencies for an additional 12 months.

General requirements for the reduced rate

This incentive is applicable to all companies that meet the following requirements:

  • All tax and Social Security payments must be up to date.
  • The indefinite contract must be maintained for a minimum of 36 months.
  • The company must not have been found guilty of unfair dismissal for objective or disciplinary reasons or collective dismissal. This requirement applied only to dismissals that occur after 25 February 2014.

Incentive for large-scale contracting

In the case of a permanent contract for a worker with a gross salary of €18,000, the company would save €6,096 in Social Security contributions. In companies of fewer than 10 workers the saving would be €8,220.

Catalonia in Business