Social Security contributions – Applying for an exemption for hiring the very long-term unemployed
Employers entering into an open-ended employment contract with very long-term unemployed persons may apply for an exemption from paying social security contributions.
This exemption apples only to the employer’s contribution, and not to the employee’s 11% contribution.
Very long-term unemployed
The very long-term unemployed are persons who, at the time of conclusion of the employment contract, are aged 45 years or over and have been registered at the job centre for 25 months or more.
Within 10 days after the beginning of the employment contract
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Who can social Security contributions – Applying for an exemption for hiring the very long-term unemployed?
Employers.
When can you social Security contributions – Applying for an exemption for hiring the very long-term unemployed?
Within 10 days of the start date of the employment contract.
What is the exemption period for hiring the very long-term unemployed?
The maximum exemption period is 3 years.
What are the documents and requirements to social Security contributions – Applying for an exemption for hiring the very long-term unemployed?
The employer is entitled to the exemption if all of the following conditions are met:
the employer is properly constituted and duly registered;
it has fulfilled its obligations relating to tax and social security contributions with the Social Security and Tax and Customs Authorities;
it is not late in paying wages;
it is entering into a full-time or part-time open-ended employment contract with the employee;
it has, in the month in which it applies for the exemption, a total number of employees higher than the average number of employees registered in the 12 months immediately before applying.
How social Security contributions – Applying for an exemption for hiring the very long-term unemployed?
Decree-Law No 72/2017 of 21 June – Establishing incentives for hiring young people seeking their first job and the long-term and very long-term unemployed.
