The President of the Government, Mariano Rajoy, has announced a new “flat rate” of social security contributions of 100 euro per month for new permanent contracts.
In the first speech in the State of the Union debate, Rajoy says that the “downgrade” will allow any company that hires new workers to take up the discounted rate for a period of 2 years, which he hopes will spark an interest in more permanent contracts being offered.
However, the company is liable to pay the full amount, including back dated dues, should the contract be terminated within a three year period, “This is the impetus for the creation of our largest employment drive in history”, stressed Rajoy, insisting that this is the first time such a move has been implemented.
Rajoy then pointed out that for a gross annual salary of 20,000 euro, which would involve the payment of 5,700 euro in social security contributions, the lowering of the rate would be around 75% to 1,200 euro per year.
The scheme is also set to be implemented on a pro-rata basis for part-time contracts, subject to them fulfilling the criteria of contractual length.
Filed under: http://www.theleader.info/article/42759/
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