It is not clear if the Spanish government will continue to apply a 50% reduction in social security contributions for fijo discontinuo employees who actually work in the low season.
In recent years, this reduction has been beneficial for businesses in the Balearics, which are estimated to have saved over 2,000 million euros.
Concern
It has applied to some 60,000 employees and to the months of November, February and March.
The national confederation of hoteliers (Cehat) and the Majorca hoteliers are concerned about budget provision for this reduction.
As things stand, the budget presented on Monday doesn’t contain this.
The president of Cehat, Joan Molas, wrote to the employment and social security ministry at the start of this month and expressed concern that the budget did not appear to envisage there being any form of reduction.
Mistake
María José Aguiló, the vice-president of the Majorca Hoteliers Federation, believes that the government is making a mistake, while Molas has pointed out to the government that if it proves impossible to approve the 2019 budget, the automatic extension of the 2018 budget should include the reduction.
“This will be essential, if the government is willing to favour measures for tourism activity and employment” in the low season.
The hoteliers have sought the intervention of the Balearics employment, trade and industry minister, Iago Negueruela, to prevent this “serious error” by the government.