This post will address the doubts and considerations that may arise regarding the application of the exempt minimum and that can help in making the decision about what type of contract to make, to which workers and when it is best to make it.
At this time, speed in decision-making is very important. The deadline for making contracts that benefit from the minimum exemption ends on August 31. Therefore, companies bhutan email list 41051 contact leads must evaluate in the coming days whether it is convenient for them and whether it is feasible or not to make permanent contracts and meet the required conditions.
Start of marked textShare! How the exempt minimum is conceived, what are its benefits and the requirements to enjoy it.End of marked text
1) The incompatibilities of the minimum exempt from contribution
The exempt minimum is incompatible with any other benefit on Social Security contributions with two exceptions : the bonus for hiring people who are beneficiaries of the National Youth Guarantee System and the financial assistance to support people who are beneficiaries of the Employment Activation Program .
2) The assumptions of reduction of the exempt minimum and the assumptions of bonus in the fee
The general assumption of the minimum exempt from contribution is a reduction assumption in which the first 500 euros of contribution base for common contingencies are not subject to the rate corresponding to the company. Thus, with a rate of 23.6%, a saving of 118 euros is produced in the contribution corresponding to the company.
But there is also a case in which the exempt minimum is transformed into a bonus on the contribution . In this case the saving will be 500 euros on the Social Security contribution. This is the indefinite hiring of workers registered in the National Youth Guarantee System who meet the other requirements established in article 105 of Law 18/2014.
The requirements established by this law for these workers are similar to those required for submitting their application for registration in the National Youth Guarantee System, except that they refer to maintaining the requirements related to the period of unemployment, educational and training activities at the time of the specific actions.
3) What happens if the application of the exempt minimum and other compatible benefits results in a negative rate?
It may be the case that a worker who is a beneficiary of the National Youth Guarantee System has access to a bonus of 300 euros on the contributions paid by the company. With the application of the exempt minimum, it could be the case that a negative contribution is obtained. In this case, the contribution is not refunded by Social Security, but this excess can be subtracted from the employer's overall contribution with respect to the contributions of the other workers.
