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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case ES-2020-22/1886 – measures in Spain

Financial incentives to hire unemployed on an open-ended basis

Subvenciones a empresas para la contratación de trabajadores desempleados

Country Spain , applies regionally

    • – ES41 Castilla y León
Time period Temporary, 25 May 2020 – 27 July 2020
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies, incl. subsidised job creation
Author Oscar Molina (UAB) and Eurofound
Case created 24 April 2021 (updated 30 April 2021)

Background information

The objective of this measure is to provide financial support to companies that hire workers registered as unemployed in the Public Employment Service of Castilla y León for the duration of the state of alarm decreed in Spain due to the crisis caused by COVID-19.

The measure was negotiated in the context of tripartite social dialogue at regional level, and then passed into legislation by the regional government.

Content of measure

Self-employed workers and companies with less than 250 workers may be beneficiaries of these subsidies. Moreover, recipients of these aids have to comply with the following requirements:

  • That the contract is permanent full-time ordinary and is maintained for at least 2 years from the start date.
  • That they maintain the employment level of the beneficiary company for at least 6 months from the start date of the eligible contract.

The amount of the subsidy will be €10,000 per worker hired on full time. These subsidies will be processed and resolved by the Public Employment Service of Castilla y León in the terms and in accordance with the procedure that will be detailed in the corresponding regulatory bases.

Use of measure

No information available.

Target groups

Workers Businesses Citizens
One person or microenterprises
Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
Local / regional government
Regional funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Negotiated Negotiated
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Social partners jointly
  • Main level of involvement: Regional or local level


Social partners participated in negotiations with the regional government on a social pact in order to face the employment impact of the COVID-19 crisis.

Views and reactions

Social partners supported this policy measure and fully agreed with the need to support employment creation for self-employees and SMEs.


  • 16 April 2020: DECRETO-Ley 2/2020, de 16 de abril, de medidas urgentes y extraordinarias para la protección de las personas y las empresas de Castilla y León frente al impacto económico y social del COVID-19 (


Eurofound (2021), Financial incentives to hire unemployed on an open-ended basis, case ES-2020-22/1886 (measures in Spain), COVID-19 EU PolicyWatch, Dublin,

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.