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NEWCO is an inward investment services provider specializing in the implementation of foreign investment in Portugal, including Madeira Island, and Malta.

Hiring Incentives - Madeira

Hiring Incentives - Madeira

The Employment Institute of Madeira (IEM) offers financial support to companies based in the Autonomous Region of Madeira wishing to hire young or unemployed workers registered in IEM. There are several programs of support to hiring by private entities, with or without profit purpose, from which we will highlight two: The Hiring Incentive Program (PIC) and the Professional Internship in Private Entities Program.

Generally, public or private, profit or non-profit entities may apply for these incentives if they, cumulatively:

  • Are legally established, with their tax and social security contributions in order.
  • Have their headquarters or permanent establishment in the Autonomous Region of Madeira.
  • Are not in breach of contract regarding any public entity or regarding any communitarian, national or regional grants by IEM.
  • Have an organized accounting system, according to the applicable legislation.
  • Fulfil all other requirements and obligations inherent to community support.

 

Professional Internships in Private Entities

This program is envisaged for profit, or non-profit, private entities to hire young unemployed people, registered in the IEM, aged between 18 and 35 (inclusive), and qualified between level 4 and 8 of QNQ. There is no age limit for people with disabilities and/or incapacities equal or superior to 60%.

Interns are entitled to (values at the time of writing, subject to change):

  • Monthly grant according to the qualification level they hold:

Qualification (NQF level)

Amount of monthly allowance to be paid by the entity

Secondary Education (4)

570,45€

Higher Education (5)

614,33€

University degree or Masters (6/7)

724,04€

Doctorate (8)

767,92€

 

  • Food allowance (€4.77/day).
  • Transport or transport subsidy (€43.88/month).
  • Work accident insurance.
  • A five-day rest period, which must be taken between the 7th and 8th month of the internship.

The grants are subject to IRS and Social Security contributions (TSU).

The support payment is responsibility of the sponsoring entities, being the IEM's financial contribution, corresponding to (monthly):

  • In private non-profit entities: 95% of the monthly grant value.
  • In private entities with lucrative purposes: 80% of the monthly grant value.
  • Food subsidy.
  • Transport subsidy.
  • Work accident insurance.

If, after the end of the internship, an employment contract is signed between the intern and the respective entity, the latter is entitled to financial support, the amount of which depends on whether the contract is a fixed-term contract or not. As an example, in the case of contract without a fixed term, the amount of financial support to be received would be €4.388.10.

 

Recruitment Incentives Programme

This program is destined to profit or non-profit private entities, that aim to hire:

  • Unemployed registered with IEM for at least 6 months.
  • Long-term and very long-term unemployed (registered for at least 12 and 24 months, respectively).
  • Young unemployed until 30 years old inclusive, registered in IEM, for at least 90 consecutive days.
  • Unemployed aged 45 years old or more, registered in IEM, for at least 90 consecutive days.
  • Beneficiaries of Social Integration Income registered in IEM, for at least 90 consecutive days.
  • Disabled or incapacitated individuals registered in IEM, for at least 90 consecutive days.

 

What kind of incentives can you receive?

This incentive takes the form of a non-refundable subsidy in an amount that varies according to the type of contract (fixed-term or open-ended), the number of months the selected candidate has been registered in IEM and his/her age. The following table summarizes the amount to receive, according to each situation (values at the time of writing, subject to change):

Open Ended Contract

Financial Incentive per Job Created

Unemployed and registered in IEM for more than 6 months

6.508,80€

Under 30 years old, unemployed, registered for more than 90 days

7.810,56€

Unemployed, registered for more than 12 months

9.112,32€

Unemployed, registered for more than 24 months

10.414,08€

Over 45 years old, unemployed, registered for more than 90 days

10.414,08€

Beneficiaries of the Social Integration Income for more than 90 days

10.414,08€

People with disabilities or incapacities, registered for more than 90 days

11.715,84€

Fixed term contract

Financial Incentive per Job Created

Unemployed and registered in IEM for more than 6 months

2.603,52€

Under 30 years old, unemployed, registered for more than 90 days

3.124,22€

Unemployed, registered for more than 12 months

3.644,93€

Unemployed, registered for more than 24 months

4.165,63€

Over 45 years old, unemployed, registered for more than 90 days

4.165,63€

Beneficiaries of the Social Integration Income for more than 90 days

4.165,63€

People with disabilities or incapacities, registered for more than 90 days

4.686,34€

Change from fixed term to open ended contract

Financial Incentive per Job Created

Before the half point of the contract

3.254,40€

After the contract is finished

1.627,20€

 

There are also other programs offered by IEM, such as the Qualify + Employ Program (for educational entities) and the Professional Internship Program in Public Administration (for public entities). For more information, please contact us or visit IEM's website (In Portuguese).

01 Mar 2021