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Decree Law No. 72/2017


Publication: Republic Diary No. 118/2017, Series I of 2017-06-21
  • Issuer: Work, Solidarity and Social Security
  • Diploma Type: Decree Law
  • Number: 72/2017
  • Pages: 3125 - 3128

Summary in plain english

What is it?

This decree-law defines new rules for incentives to hire young people looking for their first job, the long-term unemployed and the very long-term unemployed.

'Young people looking for their first job' are people under the age of 31 who have never had a permanent employment contract.

'Long-term unemployed' are people who have been registered with the Employment and Vocational Training Institute (IEFP) for 12 months or more.

'Very long term unemployed' are people aged 45 years or over who have been registered with the IEFP for 25 months or more.

For those unemployed, the number of days they have been registered with the IEFP continue to accrue even if they work on a fixed term contract or as self-employed, provided that each period of work is shorter than six months and that the sum of all periods of work is shorter than 12 months.

What will change? Discount on social security contributions

Employers that offer permanent contracts to young people looking for their first job or to people who have been unemployed long-term or very long-term will benefit from a temporary discount on their social security contributions for such workers.

The workers are still required to pay their own social security contributions.

Permanent contracts Discount on social security contributions Period

Young people looking for their first job

50%

5 years

Long-term unemployed

50%

3 years

Very long-term unemployed

100%

3 years

Portability of the discount on social security contribution

The discount on contributions exists to benefit the workers by encouraging employers to offer them a permanent contract. So, if the contract ends for reasons that are not the worker's responsibility before the end of the discount period, the remaining discount time can be transferred to their next permanent contract.

Any periods in which he or she works as an employee (without a permanent contract) or as self-employed will be deducted from the remaining time.

What are its benefits?

This decree-law is intended to:

  • reduce unemployment for the groups that were hit hardest by the austerity years
  • benefit both employers and workers.
When does it come into effect?

This decree-law comes into effect the first day of the second month after being published.

Original Version

LEGAL TRANSLATOR

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CONSOLIDATED LEGISLATION

Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.