Law Project for the Promotion of the First Job and Work Formalization

The law project includes the following benefits:

• Percentage waiver on employers’ contributions destined to Social Security, regarding employees between the ages of 16 and 24, who access their first registered job, or register less than 36 months of contributions to Social Security and workers that hold a current disability certificate. The waiver percentage will be determined according to the amount of the workers’ contributed periods and the staff that the Company registers, with the possibility of reaching 100% of contributions. Furthermore, it will only be applied on the gross remuneration, as long as it does not exceed the equivalent of one and a half times the official minimum wage.
• Financial compensation for the recruitment of workers. When hiring a new worker, the employer will receive a sum of money proportional to the number of periods contributed by the hired worker and taking into consideration the staffing of the company, which could reach the 8% of the remuneration without exceeding one and a half times the official minimum wage.
• 8% Pardoning of debt and fines in the regularization of non-registered employment. The registration of the employee performed by the employer and the correction of the real remuneration or the real date of the beginning  of the labor relationship, regarding up to 10 employees, will cause:
  • The pardoning of fines and penalties for lack or deficient registration of that employee and the annulment of any debt for social security payments, including capital and interests.
  • No consideration of outlays made before the regularization of labor relationships, such as net earnings, expenses, or sales for the determination of taxes to earnings and added value, whose fulfillment is mandatory for the employer.
  • Any workers included will have the right to include up to 60 months of services with contributions for the acquisition of the pension provisions and for unemployment benefit.
     

After employing worker #11 and after paying obligations due for capital, interest and contributions for social security, the employer will be able to access the rest of the benefits.

This regulation will operate for 12 months after entering into force.