Support for hiring young people consists of granting financing to employers to conclude employment contracts with unemployed young people. 

The majority of this support is granted by the Government or by community funds and its main objective is to reduce youth unemployment rates, which in Portugal are above the European Union average. 

But, in addition to providing opportunities for professional growth, this is also an opportunity for companies strengthen teams with promising talents.

For this reason, supporting the hiring of young people is an important tool to increase the employability of young people and boost the economy.

How does support for hiring young people work?

Support for hiring young people can be used by companies in different ways. The most common way allows you to finance part of the young person's salary and pay for professional training expenses.

Furthermore, support for hiring young people can help cover Social Security costs and invest in equipment and infrastructure. 

To apply, you must consult the programs available on the Institute of Employment and Vocational Training (IEFP), Social Security and the Government Portal. The second step is to confirm that you meet the requirements to proceed with the application.

Some of the documents that may be requested at this stage include:

• Application form;
• Company certificate;
• Declaration of regularization with Finance and Social Security;
• Young person’s employment contract;
• Young man's pay slip.

After this, the application is evaluated, the decision of which can be favorable or unfavorable. If you are entitled to the support you applied for, do not forget that you must fulfill the obligations set out in the program during the contract period.

What requirements must be met?

The requirements to be entitled to support for hiring young people vary depending on the program in question. However, generally speaking, companies should:

• Be a legally constituted company;
• Fulfill the legal requirements required to carry out the activity or present proof of having initiated the applicable process;
• Will have regularized situation with Finance and Social Security;
• Have accounting organized in accordance with the law;
• Have no outstanding salary payments, with the exception of situations provided for in the regulations;
• Not have been convicted in a serious or very serious criminal or administrative proceeding for violating labor legislation;
• Hire a young person unemployed registered with IEFP, I ateage under 35 years;
• Provide professional training to the hired worker;
• Pay the minimum amount stipulated by the program, never less than the IAS (Social Support Index).

What programs support the hiring of young people?

There are some support programs for hiring young people in Portugal, which aim to promote the professional insertion of young people in the job market and help companies hire young, qualified labor.

1. ATIVAR.PT incentive

It is financial support granted to employers who celebrate open-ended or fixed-term employment contracts, for a period of 12 months or more, with unemployed people registered with the IEFP, with the obligation to provide professional training.

Financial support is stipulated in 12 times the IAS value, in the case of open-ended employment contracts, or 4 times the IAS value, in the case of fixed-term employment contracts. 

The IAS value in 2024 is set at €509.26, so it could mean support of €6,111.12 or €2,037.04, depending on the type of contract and the support increases.

This measure has a closed application regime and is financed by the European Social Fund. Its opening period is decided by the IEFP Board of Directors, IP published on the entity's website.

2. Sustainable Employment Commitment

It is an exceptional and transitory measure, which consists of an incentive to permanent hiring of unemployed people registered with the IEFP. 

This support is combined with financial support for the payment of social security contributions, in the first year of the supported employment contract. 

The financial support granted is 6,111.12 euros for concluding an open-ended employment contract, or 7,638.90 euros for hiring young people aged 35 years or younger.

The application period for this measure is open, running until June 30, 2024. The application must be submitted on the IEFP portal, after authentication and access to your employer area. Follow the application recommendations guide!

3. ADVANCE Program

This measure specifically aims unemployed young people, registered with the IEFP, aged 35 years or less and who have higher level qualification. 

Financial support is only granted to companies that celebrate open-ended employment contracts, with young people who meet the requirements mentioned above, and whose remuneration established in the employment contract is equal to or greater than 1330 euros.

The AVANCER program wants to encourage the hiring of at least 25 thousand qualified young people. To this end, it offers support to companies between €2,037.04 and €9,166.68 for applications submitted from 2024 to 2026.

In addition, young people are entitled to financial support of 150 euros, during the first year of the employment contract, payable monthly and via bank transfer via IEFP.

Where to find young, qualified talent?

Is your team ready to welcome motivated, creative and innovative young people? There is a site that brings together students and tourism professionals looking for an opportunity.

The Employment Exchange organizes every year job fairs to bring together recruiters and candidates in the tourism and hospitality sector. 

Through direct and close contact, you can speak to candidates, see their potential first-hand and create a connection of empathy and reciprocity.

Ready to connect with thousands of young and talented candidates without the barrier of a screen? Take part in the next job fairs!