The main novelties in the Labour Law 6/2018 on General Budgets 2018

The approval of Law 6/2018 of July on the General State Budgets has led to changes that affect the working environment of companies.
The following is a list of the most important new features of the Law:

Extension of paternity leave from four to five weeks

The fifth week of paternity leave may be taken at another time within 9 months of birth, subject to agreement with the employer. The leave is extendable for multiple births by two additional days for each child from the second, and may be taken on a full-time or part-time basis for at least 50 per cent.

Reductions in Personal Income Tax (IRPF)

With this change, workers who receive a gross salary of less than 14,000 euros per year will no longer be taxed on personal income tax. The tax is also reduced for salaries between 14,000 and 18,000 euros per year.

Flat rate for 2 years for the self-employed in small municipalities

New self-employed persons from municipalities with less than 5,000 inhabitants will be able to benefit from the flat-rate payment of 50 euros for 24 months, known as the "rural flat-rate".
In order to benefit from this additional flat-rate period, self-employed persons must provide proof of their identity:
– They are registered in a municipality of less than 5,000 inhabitants on the date of registration in the RETA.
– To be registered in the census of taxpayers of the AEAT or of the Haciendas Forales.
– Maintain the registration in the autonomous activity in the municipality in the two years following the registration in the RETA and remain registered in the same municipality, the 4 years following the registration.

Bonus for the conversion of indefinite contracts.

Conversions of indefinite training and apprenticeship contracts concluded with young people benefiting from the National Youth Guarantee System or receiving support are subsidised with aid intended to promote employment. The bonus is granted to companies and the self-employed who have made these contracts, and amounts to 250 euros per month or 3,000 euros per year for a period of 3 years.

Changes in the contribution bases of the General System

The maximum social security contribution base is increased by 1. 39% and the maximum contribution base limit for all schemes is set at 3,803. 70 per month, or 126. 79 euros per day, from 1 August 2018.

Changes in the price of self-employed workers

The maximum contribution base for the self-employed increases by 1. 4%, with the maximum base at 3,803. 70 euros per month and the minimum at 932. 70 euros per month.
The minimum contribution base for 2018 will be €1,199. 10 for workers who:
– At some point in 2017, 10 or more employees were employed by the company.
– Exercise the functions of direction and management that entail the development of the position of director or administrator.
– They must be worker shareholders of the family worker owned companies, except for those who register initially at the same time during the first twelve months of their activity, starting from the date of registration.
For any questions or further information, please contact our Employment Department (laboral@cinc. es).


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