Dear client, we want to inform you that as of September 1, 2023, the Royal Decree-Law 1/2023 of January 10, on urgent measures regarding labor contract incentives and the improvement of social protection for artists, has come into effect in Spain.
This decree aims to address the issues identified in the current legal framework by integrating, organizing, and updating incentives aimed at promoting labor contracts, as well as other measures that enhance and maintain employment stability and quality through Social Security contribution discounts.
One of the novelties introduced by the Royal Decree-Law is the inclusion of new requirements that beneficiaries of the provided incentives must meet.
These requirements include being up to date with tax payments and Social Security contributions, not being disqualified from receiving subsidies and public assistance, and having an equality plan in place if required.
Furthermore, the regime for benefit refunds has been modified.
Beneficiaries who do not meet the required criteria and fail to fulfill the obligations outlined in articles 9 and 12 must repay all outstanding amounts with corresponding surcharges and late fees.
While most of the existing bonuses until September 1, 2023, have been repealed, those that remain have undergone changes.
Among the modified incentives, we find those related to individuals employed in domestic service, which entitle the employer to a 45% or 30% reduction in the employer’s contribution to Social Security for common contingencies under the Special System for Domestic Employees, provided that the requirements related to the employer’s assets and/or income of the family or cohabitation unit of the employer are met, as defined by regulations.
Also, incentives have been provided for individuals with disabilities, research personnel, insertion companies, and cases involving the replacement of victims of gender or sexual violence.
Thus, the incentives outlined in the aforementioned Royal Decree-Law are detailed in the table below under the heading “Labor contract incentives according to Royal Decree-Law 1/2023, of January 10, on urgent measures regarding labor contract incentives and the improvement of social protection for artists.”
Isabel la católica 8, 3º Puerta 33 46004 Valencia, Spain
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