Example: Reduction due to employment incentives

Mr. AAA develops the activity of a two-star restaurant, section 671.4 of the IAE .

During the 2023 fiscal year, three full-time, permanent employees worked in the activity, each of whom worked a total of 2,100 hours per year. In June, an apprentice was hired for a period of 6 months, totalling 1,050 hours of work.

In fiscal year 2024, the workforce situation was as follows:

• The three employees with permanent contracts remain in the company, working the same annual working hours as in the previous year. 

• On January 2, a worker was hired on a permanent basis, totaling 2,100 hours/year.

• On August 1, 2 new people were hired temporarily for a period of 6 months, each of whom totaled 1,000 hours/year of work.

Determine the reduction for employment incentives corresponding to the 2024 fiscal year, assuming that the number of annual hours established in the corresponding collective agreement is 1,800.

Solution:

1. Determination of the coefficient for increasing the number of salaried people .

1. Increase in the number of salaried employees in 2024 compared to 2023 in absolute terms:

   • Salaried persons in 2023: 4 people

   • Salaried people in 2024: 6 persons

   • Increase in the number of salaried people: 2 people

2. Increase in the number of units of the "salaried personnel" module in 2024 compared to 2023:

   • Number of units of the "salaried personnel" module in 2023.

     (3 x 2,100/1,800) + (60% s/1,050/1,800) = 3.5 + 0.35 = 3.85 people

   • Number of units of the "salaried personnel" module in 2024

     (4 x 2,100/1,800) + (2 x 1,000/1,800) = 4.67 + 1.11 = 5.78 people

   • Increase in the number of units: 5.78 – 3.85 = 1.93 people

If both requirements are met, the positive difference between the number of units in the "salaried personnel" module in 2024 and 2023 will be multiplied by 0.40.

Coefficient for increase in the number of salaried people: 0.40 x 1.93 = 0.772

2. Determination of the coefficient by sections of the number of units of the "salaried personnel" module, excluding the positive difference on which the previous coefficient of 0.4 has been applied.

5.78 - 1.93 = 3.85

Total	3.85		0.57
Tranche	Salaried staff	Coefficient per section	Totals
Up to 1.00	1	0.10	0.10
Between 1.01 and 3.00	2	0.15	0.30
Between 3.01 and 5.00	0.85	0.20	0.17

3. Reduction coefficient: 0.772 + 0.57 = 1.342

4. Amount of the reduction for employment incentives.

It is the result of multiplying the annual yield per unit before amortization of the "salaried personnel" module (3,709.88) by the reduction coefficient (sum of the coefficient for the increase in the number of employees plus the coefficient by sections: 1,342). That is, 3,709.88 x 1.342 = 4,978.66 euros.