The Government has recently presented the “Reincorpora-T Plan”, which is shown as a program designed to promote the hiring of long-term unemployed by companies, which will have a total of 2,500 million euros and will last for three years (2019 – 2021).
What is the Reincorpora-T Plan of aid for the recruitment of the long-term unemployed?
The Reincorpora-T Plan will have a budget of 737.2 million euros in 2019, aimed at boosting the hiring of the long-term unemployed. A budget that will amount to 1,038 million in 2020, and will have 691.8 million in 2021.
The main objective of this plan is to try to reduce the rate of long-term unemployed,which currently stands at 5.8%, to 3.6% during the end of 2021. If these data were to be obtained, it would mean that around 150 000 long-term unemployed would have been reintegrated into the labour market.
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A plan that comes after the government had been looking for measures for the long-term unemployed, over 45 years of age.
Items that make up the Reincorpora-T Plan
The Reincorpora-T Plan is composed of a series of items ranging from orientation to hiring, through training and employment bonus.
The item that will have the greatest economic support will be the recovery of unemployment benefit for people over 52 years of age,with a total of 1,196 million euros in three years, of which 388 will be applied in 2019.
Another item will be earmarked for the vocational training of the unemployed, which will amount to EUR 732 million. In this way, courses will be financed with the aim that employees with a low level of training can obtain key competences for their recruitment.
These competences will be limited to the completion of courses in official languages of Spain, mathematics and foreign languages, with the aim of covering 15% of the long-term unemployed.
Training programs in digital skillswill also be launched, designed for unemployed people over 45 years of age, through which it is intended to reach 10% of this group. At the same time, courses will be financed in sectors of preferential interest, such as environmental sustainability, energy transition, personal care and dependency.
The Reincorpora-T Plan will also finance a team of counselors to design personalized reintegration plans for the unemployed,with an annual budget of 83 million euros.
Bonuses and public contracts for companies
The Government also wants to offer bonuses in social security contributions for those companies that opt for the hiring of long-term unemployed,through an item that will have 277 million euros, of which only 26 million will be activated in 2019.
The Reincorpora-T Plan contemplates bonuses of 1,300 euros per year for companies that hire long-term unemployed, and 1,500 euros in the case of hiring women.
These bonuses contemplated by the Reincorpora-T Plan are included in Decree – Law 8/2019 on Urgent Social Protection Measures, for the hiring of people who have spent more than 12 months unemployed.
Companies may enjoy a bonus of 1,300 euros per year for each worker hired,an amount that will increase to 1,500 inthe case of women. With regard to part-time contracts, the bonuses will only be applied if requested voluntarily.
Likewise, the draft Plan-Reincorpora-T details that the tax deductions will be limited to companies that hire long-term unemployed indefinitely, which will be larger depending on the number of unemployed hired.
The Reincorpora-T Plan has been launched by the Government with the intention of preventing and reducing long-term unemployment, through the training of unemployed people and different subsidies for those companies that choose to hire long-term unemployed.