WE INFORM YOU THAT… The national government issued Decree 0533 on April 29, 2024, regulating the continuation of incentives for the creation and retention of new formal jobs.
DID YOU KNOW… With the issuance of this Decree, the regulations on the creation of new jobs established by Law 2155 of 2021, following the Covid-19 pandemic, are extended. These regulations are aimed at promoting the development and retention of new formal jobs, while having a positive impact on individuals seeking formal employment and providing financial support to employers who adopt these measures.
IMPORTANT NEWS
The incentive for the creation and retention of new formal jobs consists of an economic stimulus for employers who:
- Create new jobs (for a period of 6 months or more), with the incentive being maintained until AUGUST 2026.
- Employers applying for the incentives can receive a maximum of 24 incentives for the same worker, and must demonstrate the worker’s retention through contributions to the Social Security System (PILA).
- New jobs must represent an increase in the number of workers reported in the PILA system.
- It applies to contributions with salaries no lower than the current legal minimum wage.
NOTE: A worker replacing an existing employee is not considered an additional worker.
If the above conditions are met, and after the first 6 months are completed, the employer could receive a monthly economic incentive, as follows:
- Persons with disabilities: The value of the incentive would correspond to 35% of 1 Minimum Legal Monthly Wage (SMLMV) (COP 455,000 in 2024).
- Young people between 18-28 years old: The incentive value would be 30% of 1 SMLMV (COP 390,000 in 2024).
- Women over 28 years old, earning less than 3 SMLMV: The incentive value would correspond to 20% of 1 SMLMV (COP 260,000 in 2024).
- Men over 28 years old, earning less than 3 SMLMV: The incentive value would correspond to 15% of 1 SMLMV (COP 195,000 in 2024).
Additionally, if any of these new hires had been unemployed for the 4 months prior to their hiring, or had been beneficiaries of the unemployment protection mechanism, the incentive will increase by 10% over the values mentioned above.
