This April, within the framework of Law 19,973 on Employment Promotion, an agreement was signed between the Ministry of Labor and Social Security and the Ministry of Social Development with the aim of encouraging the hiring of young people – particularly in their first experience employment-, people with disabilities and those over 45 years of age. It emphasizes the incorporation of women, given that they have greater difficulties in accessing the employment market in any age group or population group considered.
The agreement promoted by the National Employment Directorate establishes that those companies that hire people participating in the Accesses program within the framework of the protected work modality -which focuses on people who belong to households that are below the poverty line- they will have a differential subsidy equivalent to 60% of the worker’s salary when a man is hired and 80% of the salary when a woman is hired.
The companies that contract within the framework of this agreement will receive the subsidy -which is deducted from the payments they must make to the BPS-, for a period of up to one year and with a cap of 80% of two national minimum wages, which is equivalent currently to a subsidy of up to $30,982 pesos per month.
This agreement has several purposes. In the first place, it focuses on the populations with the greatest difficulties in accessing the employment market, since it is aimed at incorporating young people or people over 45 years of age who belong to poor households, who are often unemployed for a long time. and/or have an educational level that makes it difficult for them to access the employment market.
Second, by encouraging the hiring of people who participate in one of the most important Mides programs -which works to support, promote and seek self-reliance for the most vulnerable people- the subsidy seeks to strengthen public policy aimed at those people who live in a situation of socio-economic vulnerability, showing an articulated work between two ministries that has a clear social profile and generating synergies that enhance the efforts of society towards this population.
The signing of this agreement is a transcendent fact because it focuses its action on a very vulnerable population and enhances the action of public policies, with the addition that the subsidy granted to companies is really a very important contribution that is being made since the State, which clearly shows what the government’s priority is in terms of employment.