Madrid approves its employment subsidy plan for 2027-2029

The Regional Ministry of Economy, Finance and Employment of the Community of Madrid has approved the Strategic Plan for Grants managed by the Directorate General of the Public Employment Service for the years 2027, 2028, and 2029. The regulation, an Order of September 25, 2026, is published in the BOCM no. 240, of October 8, 2026, section I.C “Other Provisions”, with the official reference BOCM-20261008-31. The plan organizes nine aid programs whose estimated budgets total nearly 790 million euros.

The order is issued under article 149.1.7 of the Constitution and article 28.1.12 of the Statute of Autonomy, and in compliance with article 8 of the General Grants Law 38/2003, of November 17, and articles 4 bis and 4 ter of the Grants Law of the Community of Madrid 2/1995, of March 8. The text provides continuity to previous plans “correcting those aspects that have proven to be susceptible to improvement.”

The reference framework is the Madrid Strategy for Employment 2025-2027, agreed upon on January 17, 2025, within the framework of social dialogue, along with the Youth Employment Plan 2024-2025 and the Senior Employment Plan 2026-2027. The plan is also aligned with the Spanish Strategy for Active Employment Support 2025-2028, approved by Royal Decree 633/2025, of July 15, and with the Employment Law 3/2023, of February 28. The order is signed by the vice-minister María del Carmen Tejera Gimeno, by delegation of the minister (Order of April 17, 2024, BOCM no. 108, of May 7, 2024).

The nine programs and their estimated budget

• Hiring incentives: 153.9 million euros, with 93 million for the permanent hiring of unemployed persons requiring special attention, 30 million for youth, 6 million for professional practice training contracts, 6 million for dual vocational training, 15.9 million for people with disabilities and vulnerable groups, and 3 million for expanding part-time positions to full-time.
• Incentives for the hiring of domestic workers: 6.9 million euros.
• Hiring of young job seekers in the research sector: 24.7 million euros.
• Public employment and training programs: 267.56 million euros, of which 93 million are reserved for rural municipalities and 174.56 million for the rest.
• Guidance, training, and labor insertion: 15 million euros.
• Prospecting, intermediation, and on-the-job support for people with disabilities: 2.7 million euros.
• Wage costs in Special Employment Centers: 270 million euros, plus 13.5 million for professional activity support units.
• Labor integration of people at risk of or in a situation of social exclusion: 12 million for itineraries with non-profit entities and 23.58 million for integration enterprises.
• Special aid from Royal Decree 196/2010, modified by Royal Decree 1783/2011, for those affected by the employment regulation files 76/2000 and 25/2001 of Sistemas de Instalaciones de Telecomunicaciones S.A. (SINTEL): 89,832 euros.

Priority groups and beneficiaries

The stated objectives are to reduce unemployment, incentivize hiring, decrease the gender gap, improve employability, and facilitate access to employment for those facing the greatest difficulties. Recipients include:

• Long-term or very long-term unemployed and those over 45 years old, especially those over 55.
• Young people under 30, including those accessing their first qualified job.
• People with disabilities, those with borderline intellectual capacity, women victims of gender-based violence, victims of trafficking and sexual exploitation, victims of terrorism, and people at risk of exclusion.
• People hired in rural municipalities with fewer than 5,000 inhabitants, to curb depopulation.

Beneficiaries may include self-employed workers, companies, non-profit entities, local entities, special employment centers, universities, and R&D&i centers, depending on the line of funding. Financing comes from the budget program 241M-Promotion and Encouragement of Employment, from state funds distributed by the Sectoral Conference on Employment and Labor Affairs, from own funds, and from the ESF+ Program 2021-2027.

Monitoring and evaluation

The plan establishes common indicators—number of grants awarded, percentage of credit granted and paid, distinct beneficiaries, participants by age and gender, and contracts created or maintained—and provides for the annual publication of the evaluation results on the Community of Madrid website. The attached table collects the results of the previous plan: for incentives for the permanent hiring of unemployed persons requiring special attention, 31.5 million were authorized and 31.49 million were granted, with 4,745 recipients.

The plan sets the roadmap for Madrid’s employment aid over three fiscal years and determines which groups, companies, and entities will receive the funds, as well as the criteria by which their results will be evaluated.

Source: BOCM, no. 240, of October 8, 2026, section I.C “Other Provisions”, pp. 132-165 (official reference: BOCM-20261008-31).