Something that previously we just saw on telephones, now comes to Social Security. The flat rate. For those who are not really aware of what this consists of, please keep on reading to find out more about it.
What exactly is the flat rate of 100 euros?
It is a reduction in employers’ social security contributions for common contingencies for permanent contracts which will benefit companies and freelancers to increase their level of employment, both the level of permanent employment as the level of net employment contributions, which must be maintained for at least 36 months.
What does it involve and what are the objectives?
It implies that companies and freelancers pay only 100 euros per month in Social Security contributions for common contingencies and aims to encourage economic growth and that this, in turn, assume a greater job creation and affiliation to Social Security. As well as greater job stability, reducing seasonality and attacking the duality between workers with permanent and temporary contracts.
How soon can businesses and freelancers benefit with this Flat Rate?
At first it was applicable to all permanent contracts, which were qualified, conducted between February 25 and December 31, 2014, but the government has extended that until March 31, 2015.
Which is the duration?
The flat rate will be maintained for 24 months from the time of recruitment.
After the period of 24 months, businesses or freelancers who at the time of signing the contract to which these reductions apply with fewer than 10 workers will benefit for 12 months a reduction of 50% of the business contribution to quote by contract worker for the common contingencies indefinitely.
Fortunately, this rate is also applicable to fixed-discontinuous and part-time contracts, having some peculiarities to consider. At the same time, a number of contracts are excluded from this great advantage.
But if in addition to this information, you need more or better advice on hiring or about the characteristics and applications of this Flat Rate, the equipment labor consultants and specialist managers in Daemi Zabalza & Asociados, will advise you and give you the best solution.