The State Public Employment Service has activated a new package of 50,000 grants for hiring people over 45 years old, with subsidies of up to 8,000 euros per indefinite contract.
The State Public Employment Service (SEPE) has launched an ambitious plan of 50,000 grants to promote the hiring of people over 45 years old. The maximum subsidy reaches 8,000 euros for full-time indefinite contracts, a figure that doubles the usual grants in previous calls.
The measure responds to a persistent reality: the unemployment rate for those over 45 years old exceeds the national average by four points and their average period of unemployment is nearly 18 months. With this program, SEPE aims to incentivise SMEs and self-employed workers, who are the main generators of net employment in Spain.
Two types of aid: indefinite and temporary
The program is structured in two tiers. For full-time indefinite contracts, the aid is 8,000 euros per worker, paid in a single payment after the first six months of the contract. For temporary contracts of at least one year, the subsidy is 4,000 euros, with the same deferred payment mechanism.
SEPE estimates that the total funding will support around 50,000 hires across Spain during the second half of 2026. The grants are compatible with other existing Social Security bonuses for this group, such as the flat rate of 60 euros for self-employed individuals hiring their first employee.
Requirements for companies and workers
To access the aid, the company must be up to date with payments to the Tax Agency and Social Security, must not have terminated contracts through unfair dismissal in the previous 12 months, and must maintain the created employment for at least double the subsidised period. Additionally, the average workforce must not decrease during the two years following the hiring.
For the worker, it is required to be 45 years or older at the time of signing, to be registered as a job seeker, to prove a continuous unemployment period of at least 12 months within the last 18, and not to have worked for the hiring company in the previous six months. No prior experience or specific qualifications are required.
Practical analysis: is it worth it for SMEs and self-employed workers?
From the perspective of an SME or a self-employed individual, 8,000 euros equates to covering almost 50% of an employee's salary cost during the first year, considering an average gross salary of 1,400 euros per month. It is a significant incentive, especially in sectors with tight margins such as hospitality, retail, or proximity services.
However, the payment is not received until the worker has completed six months with the company, which requires advancing salaries and contributions for half a year. For businesses with tight cash flow, this temporal gap can be an obstacle. Additionally, the commitment to maintain the workforce for two years adds a constraint to flexibility: if the business struggles, dismissing the worker entails the full repayment of the aid already received.
Consulted self-employed associations view the measure positively, although they call for an advance payment to avoid liquidity tensions. The Government has tightened the conditions of the subsidies to prevent the so-called "deadweight effect", prioritising the real stability of the created employment.
Eight out of ten unemployed individuals over 45 have been searching for work for over a year; this aid reduces the risk of hiring them and opens a door that many companies would not consider without the incentive.
For the candidate, the key is to present themselves to companies as a profile already associated with public aid. Including in the CV or mentioning in the interview that they meet the program's requirements can make a difference, as many businesses are still unaware of this line of support.
The application for the aid is not processed by the worker, but by the company that hires them. To formalise it, the company must access the SEPE electronic headquarters (sede.sepe.gob.es), identify themselves with a digital certificate, electronic ID or Cl@ve, and follow the steps indicated in the hiring aid section.
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