Socio-Labor News approved by the PGE2018

Recently the GENERAL BUDGETS OF THE STATE 2018 have been approved, whose main novelties in the socio-labor field we will summarize.

Given the breadth of the information, we have divided this circular into 2 sections.

1. Collect the most outstanding NOVELTIES in LABOR PARTNER.

2. Summary of the new regulation for certain TRAINING CONTRACTS

1. LEGISLATIVE NOVELTIES. PGE 2018

• Paternity leave is extended to 5 weeks . The time of suspension of the contract of work for paternity, in the cases of child birth, adoption, custody for adoption or foster care, is as of 5-7-2018 of 5 weeks , extendable in the cases of childbirth, adoption , save for multiple adoption or foster care in two more days for each child from the second.The period of suspension must be uninterrupted except the last week of the total period to which it is entitled, which, after agreement between employer and worker , can be enjoyed independently at another time within 9 months after the date of birth of the child, the court order or the administrative decision. This agreement must be adopted at the beginning of the suspension period
• New minimum and maximum contribution bases for self-employed workers . As of 1-8-2018, the new maximum contribution base for self-employed workers will be € 3,803.70 and the minimum base is € 932.70. Thus the self-employed who quote for the minimum base, will pay a fee of € 278.88 (until June / 18 was € 275.02).
• In order to encourage self-employment in municipalities with less than 5,000 inhabitants , the right of self-employed workers residing and developing their activity in those municipalities to benefit from the same reductions of income is established as of 1-8-2018. the flat rate during the 12 months following the initial period (12 + 12) , for it must maintain the registration in the autonomous activity in the aforementioned municipality in the 2 years following the registration in the RETA that causes the right to this incentive; as well as remain registered in the same municipality in the 4 years following said discharge.
• Pension increases 1.6% in general and 3% for minimum and non-contributory pensions . The most remarkable thing is that they rise retroactively, this increase will apply from January. Therefore, retirees will receive this increase and all the arrears in the extraordinary payment of July.
• Improvements in Income Tax : The margin is extended to not have to present the Income tax return . The limit for this obligation goes from 12,000 euros to 14,000 euros gross per year. In addition, users who receive between 14,000 and 18,000 gross euros per year, will pay less taxes.
• New aid for situations of dependency and large families , It includes a deduction of 1,200 euros in taxation of income tax for cases that are borne by a disabled spouse and the deduction for large family is increased by 600 euros for each child.
  

• The regulatory base for widow's pensions is increased, from 52% to 56% .

• The income of the family unit will not be taken into account to access the subsidy for people over 55 years of age . unconstitutional and void, among other precepts that required to be able to access the unemployment benefit for people over 55 years, in addition to other requirements, than the income of the family unit constituted, including the applicant, divided by the number of members that compose it, does not exceed 75% of the SMI, excluding the proportional part of two extraordinary payments. Although, the Constitutional Court declares that the effects of the nullity will not affect the consolidated legal situations. For this reason, situations decided by means of a judgment of res judicata or those established by firm administrative actions will not be reviewed. As a consequence of the declaration of nullity, for the access to this subsidy, only the income attributable to the applicant of the subsidy, applicable, from 9-7-2018 , in addition to the new applications and to which they were pending to solve, to the resolutions of the previous claims that could appear, and to the judicial processes in course (Consultation of the SEPE).

2. AID FOR THE TRAINING CONTRACT.

• Support assistance of € 430, € 27 for young people enrolled in the Youth Guarantee System who are hired through a training and learning contract.

The aid will be paid directly to your account, for up to a maximum of 18 months . 36 months in the case of having a recognized degree of disability equal to or greater than 33%.

In return, young people will have to commit to actively take advantage of the official Certificate of Professionalism training they receive in their contract.

This help is compatible with the 100% bonuses in the social insurance that the company receives during the entire term of the contract.

• Requirements for the worker to access € 430 aid per training contract

1. Be enrolled in the Youth Guarantee System . To be able to register in this file they can not be working or studying on the application date.
2. Not having higher education or a maximum of ESO . The aid will not be applicable for young people with studies of Vocational Training, University or Certificate of Professionalism.
3. Actively carry out the official training they will receive with the training contract. In the case of not having an optimal use, they will lose the help

• In addition, the contract will have to fulfill the following characteristics:

1. The contract must have a duration of at least 1 year .
2. It will be carried out in accordance with current regulations (Art.11, 2 of the Workers' Statute).
3. Training and follow-up must be carried out in accordance with the regulations of this contract, with a center accredited by the SEPE.
4. The application for the contract must be submitted on August 4 , the date on which the aid takes effect. The aid will not be valid for previous contracts.

• How to apply for the help of 430 euros for training contracts.

This help must be requested by the young beneficiaries, for this, they will have a period of 15 days after the start of the contract. The SEPE will enable an official application form on its website, which must be submitted to the Employment Office .

• Help for the subsequent transformation of Youth Guarantee training contracts to permanent contracts

This bonus has an amount of 250 euros per month, adding a total of 3,000 euros per year, which will be applied in business quotas for common contingencies to social security.

These benefits can be enjoyed for 3 years and can be added to existing ones by transforming training contracts into permanent ones. We remind you that there is currently a bonus for these transformations of 1,500 euros (1,800 euros if you are a woman) during the same period.

This implies that a company that has hired a young person in training subscribed to the assistance of accompaniment, may apply up to 4,800 euros in bonuses for 3 years. Of course, the rule states that the sum of both benefits may not exceed 100% of the business contribution to Social Security.