The Community of Madrid approves new direct aids to hire domestic employees and facilitate work-life balance.

The Community of Madrid will allocate 2 million euros to a new program of incentives for hiring domestic employees to take care of children under 12 years old or children under 18 years old with disabilities, as well as other family members with disabilities or dependents living in the same household. The aim is to facilitate work-life balance.

The Regional Government Council approved in its last meeting this initiative from the Ministry of Economy, Finance, and Employment, consisting of direct aids of up to 4,000 euros to cover the labor costs of domestic employees who were hired during the eligible period (the year prior to the application submission).

Therefore, an amount equivalent to the Social Security contributions paid by the employer (with a 25% increase) will be reimbursed based on a percentage determined according to the family’s per capita income. This percentage can reach 100% for single-parent families or those with incomes below 20,000 euros.

This program will be allocated 2 million euros in 2023 to finance contracts that took place the previous year, with a minimum required period of maintaining the employment relationship and Social Security registration for 58 consecutive days.

The domestic employee must perform their duties in the employer’s residence located in the Community of Madrid. Generally, the employer must engage in a paid activity either as a self-employed individual or as an employee on a full-time basis during the eligible period.

This program will come into effect on the day following its publication in the Official Gazette of the Community of Madrid (BOCM), establishing a deadline for applications from February 1st to April 30th of each year. For this year 2023, a transitional provision establishes a three-month period from its publication for requests related to domestic employees who were hired in 2022 and meet the requirements. The processing of these aids can be done through the electronic headquarters of the Community of Madrid.