Incentive for the generation of new jobs: DECREE 1399 of 2021

Said article allows financing labor costs, such as social security and parafiscal payments, and is aimed at employers that generate new jobs by hiring additional workers and at worker cooperatives that hire new additional associated workers.

Having specified the above, the regulations are as follows:

Beneficiaries: The beneficiaries of the incentive will be individuals, legal entities, consortiums, temporary unions, autonomous patrimonies and cooperatives that prove their status as employers, and associated work cooperatives that have contributed, with respect to their associated workers, the full month to the Integral Social Security System.

Requirements:

• In order to apply for the recognition of the incentive, they must have a deposit product in an entity supervised by the Financial Superintendence of Colombia or by the Superintendence of the Solidarity Economy.
• Only for the workers that are linked during the month of the support, the workers on which at least fifteen (15) days of the month have been contributed and remain linked until the end of the month of entry will be taken into account.

Amount of the incentive for the generation of new jobs:

• Additional workers corresponding to young people between 18 and 28 years of age: The employer will receive as an incentive a state contribution equivalent to twenty-five percent (25%) of one (1) legal monthly minimum wage in force - SMLMV for each of these additional workers. In this case, the incentive may be obtained until the last month in which the employee reaches twenty-eight (28) years of age, that is, before reaching twenty-nine (29) years of age.
• Additional workers over 28 years of age, who earn and therefore contribute up to three (3) legal monthly minimum wages in force - SMLMV: The employer will receive as an incentive a state contribution equivalent to ten (10%) of one (1) legal monthly minimum wage in force - SMLMV for each of these workers.

 Additional female workers over 28 years of age, who earn and therefore, contribute up to three (3) legal monthly minimum wages in force - SMLMV: The employer will receive as an incentive a state contribution equivalent to fifteen (15%) of one (1) legal monthly minimum wage in force - SMLMV for each one of these additional female workers.

For the purpose of counting the additional workers, the number of employees or associated workers for which each employer or worker cooperative, as the case may be, had contributed for the month of March 2021 will be taken as a reference, for which they must have paid before the maximum date of each application, and the number of additional workers will be considered over the total of those reported in the Integrated Contribution Settlement Form - PILA and that have not been

Temporary suspension of work contract or unpaid leave of absence - SLN, for a term less than or equal to fifteen (15) days.

How many times can the incentive be received?

Up to twelve (12) times, and must comply, in each case, with the procedure stipulated in each of the months in which he/she applies.

How long will the incentive be in effect?

The incentive for the generation of new jobs began to be effective as of September 14 with the enactment of Law 2155 of 2021 and will be in effect until August 2023. However, in order to apply after September 2022, the employer must have applied and received at least one contribution before September 2022.

Finally, this new incentive may not be granted simultaneously with other non-tax contributions or subsidies at the national level, which have been created with the purpose of encouraging the formal hiring of the population, such as the “sacúdete” strategy.