Madrid increases incentives for permanent employment by one million euros

The Community of Madrid is increasing by 1,000,000.00 euros the credit destined to finance the direct granting of subsidies for Line 1: Incentives for the indefinite hiring of unemployed persons requiring special attention, part of the hiring promotion program for the year 2026. The decision was adopted by the Ministry of Economy, Finance and Employment through the Order of October 21, 2026, published in the OFFICIAL BULLETIN OF THE COMMUNITY OF MADRID no. 265, of November 4, 2026, in section I.C (Other Provisions), pages 500 and 501.

A line with more applications than expected

The text justifies the expansion by stating that “it has been found that the authorized credit for this line of incentives is insufficient given the number of applications submitted.” The Ministry adds that there is sufficient budgetary availability to increase the credit, therefore invoking article 27.4 of the Agreement of December 28, 2022, of the Governing Council, the regulation that governs this direct subsidy route.

The initial credit for the line was set at 31,000,000.00 euros via the Order of December 10, 2025, from the same Ministry, published in the BOCM no. 25, of January 30, 2026. With the now-approved expansion, the declared amount for Line 1 amounts to 32,000,000 euros for the 2026 fiscal year.

Six lines and direct granting

The hiring promotion program was approved by the Agreement of December 28, 2022, of the Governing Council (BOCM no. 312, of December 31), and was modified by the Agreement of December 26, 2024 (BOCM no. 310, of December 30). The agreement establishes a total of six subsidy lines, including the incentives for the indefinite hiring of unemployed persons requiring special attention, which is the subject of this expansion.

The granting is processed directly and on an exceptional basis under article 4.5.c) of the Law 2/1995, of March 8, on subsidies of the Community of Madrid, which allows this procedure when reasons of public, social, economic, or humanitarian interest are proven.

State financing and budgetary allocation

The specific points of the adopted agreement are as follows:

• Expansion of 1,000,000.00 euros of the available credit for Line 1 for the year 2026.
• Allocation of obligations to sub-concept 47202-Active Employment Policies, of budgetary program 241M of the General Budgets of the Community of Madrid for 2026.
• Full financing borne by the State, in accordance with Order TES/743/2026, of July 13, which territorially distributed labor-related credits for 2026 for management by the autonomous communities with assumed competencies.

The order appears signed in Madrid, on October 21, 2026, by the Minister of Economy, Finance and Employment, with the signature by delegation —Order of April 17, 2024 (BOCM no. 108, of May 7, 2024)— of the Vice-Minister of Economy and Employment and, acting as substitute, the Vice-Minister of Finance and Public Function, Juan Revuelta González. The document bears the reference BOCM-20261104-34 and the internal file code (03/17.422/26).

The budgetary reinforcement affects one of the groups with the greatest insertion difficulties, those unemployed requiring special attention, including the long-term unemployed, and benefits both the companies that formalize permanent contracts and the workers who access them. By guaranteeing the credit to address the requests already registered, the line prevents new petitions from remaining uncovered due to a lack of allocation in the current fiscal year.

Source: OFFICIAL GAZETTE OF THE COMMUNITY OF MADRID, no. 265, of November 4, 2026, section I.C (Other Provisions), pp. 500-501 (official reference: BOCM-20261104-34).