Reduction of corporate contributions to Social Security for indefinite

Reduction of contributions for common contingencies in Social Security indefinite.

Royal Decree-Law 3/2014 - BOE 1-3-2014

Reduction type:

Reduced to a certain amount of corporate contributions to Social Security contributions for common contingencies with effect from 25 February 2014.

Contracts to which the reduction applies:

Permanent contract, full time or part time, formalized in writing and held between 25 February 2014 and 31 December 2014.

Amount of contribution (flat rate):

Permanent contract full time: 100 € / month.
Permanent contract part time (minimum 75% day) 75 € / month
Part-time permanent contract (50% minimum day): 50 € / month

Duration of the reduction:

Apply for a period of 24 months starting from the date of effect of the contract.

Additional reduction for businesses with fewer than 10 workers:

Companies that currently hold the contract to which the reduction applies provided with less than ten employees are entitled to a reduction equivalent to 50% of the employer's contribution for common contingencies contribution corresponding to laborer hired indefinitely.

The reduction will apply for 12 months after the end of the period of 24 months which has applied the flat rate (25 to 36 months)

Limitations on the amount of the reduction:

When the dates of high and low worker in the social security system corresponding non-coincident with the first or last day of the calendar month, the amount of the business referred to in this article will be reduced in proportion to the number of days in the month high.

Requirements of companies benefit from these reductions:

- Long-term contracts should be held to an increase both in the level of permanent employment as the level of total employment in the company. To calculate this increase, it shall refer the mean daily workers who have served the company in the thirty days prior to the contract.

- Not have terminated employment contracts, for objective reasons or disciplinary dismissals have been some other judicially declared as inadmissible or collective redundancies, in the 6 months prior to the conclusion of contracts entitling reduction. In order to comply with this requirement does not take into account the extinctions that occurred before 25 February 2014.

- Maintain for a period of 36 months from the date of effect of a permanent contract with reduced application of both the level of permanent employment as the level of total employment reached at least with this contract.

Examined to maintain the level of permanent employment and total employment level in twelve months. To do this, use the average of the average permanent workers and workers totals more appropriate when examining compliance with this requirement.

For the purpose of examining the level of employment and its maintenance company, will take into account the extinction of employment contracts for objective reasons or disciplinary dismissals have not been declared inadmissible.

- Find abreast in compliance with tax and social security.

- Not have been excluded from access to benefits derived from the implementation of employment programs for the commission of certain serious or very serious.

Cases where reductions can not be applied:

- Industrial relations of a special nature (Art. 2 TE), ie, that of senior management who are not strictly directors and members of board of directors of companies, the service the family home of the convicts in penal institutions, the professional athletes, the artists in public performances, the people involved in commercial transactions on behalf of one or more business without assuming the risk of the disabled workers who provide services special employment center and the port dockworkers who provide services through state societies or those of the same functions develop ports managed by Autonomous Communities

- Contracts affecting the spouse, ascendants, descendants and other relatives by consanguinity or affinity up to the second degree inclusive, from the employer or business who have control, hold management positions or are members of the governing bodies of organizations or companies that have the legal form of society, as well as occurring with the latter.

Exception: the self that contract, as employed persons, children under 30, still living with him, or older if children who have special difficulties in employment (disabled) to According to the DA tenth of Law 20/2007, the reductions may apply.

- Recruitment of activity determined its inclusion in any of the special systems established in the General System of Social Security.

- Hiring employees may exceptionally occur in the terms established in the art. 20 and 21, and in AD twenty and twenty-one of the Law 22/2013 of PGE (public sector)
- Hiring employees who have been employed in other companies of the group of companies that are part and contracts had been terminated for objective reasons or disciplinary dismissals that have been judicially declared as some other irrelevant, or collective dismissals groups in the 6 months prior to the conclusion of contracts entitling reduction. The provisions of the preceding paragraph shall not apply in the case of extinctions that occurred before 02/25/2014.

- Hiring employees in the 6 months prior to the date of the contract have served in the same company or entity under contract indefinitely. The provisions of the preceding paragraph shall not apply in the event of employees whose employment contracts had expired before 25 February 2014.

- There will apply the expected reduction in this Royal Decree to quote for additional hours performed by part-time workers contracts entitling reduction.


Incompatibility reductions:

Compatible with any other benefit in Social Security contributions for the same contract, regardless of the concepts may affect these benefits.

Refund:

Failure to meet any of the requirements means that the reduction shall not apply and shall proceed to refund the difference between amounts relating to the contributions to the business contribution for common contingencies that would come if not applied reduction and the contributions already made from the start date of the application of the reduction, in the following terms:

- If the breach of the requirement to maintain the level of employment occurs twelve months from the contract corresponds to 100 100 to refund the difference.
- If the failure occurs at twenty months from the contract relates to refund 50 100 difference.
- If the breach took place thirty-six months from the contract relates to reinstate 33 100 difference.

Remember the rule, regardless of income mentioned in the terms mentioned above are the full implementation of sanctions Smooth and therefore even proceeded to income you may be penalized if you consider that it has violated some precept or behavior typified the Liso.

Reduction is not applicable provisions of this Royal Decree to quote for additional hours performed by part-time workers whose contracts are entitled to a reduction. Therefore, these hours must be listed, with respect to the contribution for common contingencies, entirely.