Law 21,808 replaces the Youth Employment Subsidy (SEJ), the Women's Work Bonus (BTM), and the Youth Social Security Subsidy with a single system administered by Sence. It takes effect on October 1, 2026. If your company hires people aged 18-24, women aged 25-54, workers 55 and older, or persons with disabilities, this subsidy can reduce your hiring cost by up to 20% of gross monthly wages.
What changed
Until now, the State subsidized formal hiring through 3 separate programs: the SEJ, the BTM, and the Youth Social Security Subsidy. Each had its own platform, its own requirements, and its own caps. Law 21,808, published on March 13, 2026, replaces them with a single system: the Unified Employment Subsidy (SUE), funded by the treasury and administered by Sence.
The objective: promote formal employment, workforce reentry, and first-time hiring. State-owned companies and public enterprises created by law are excluded.
The law defines 4 priority groups:
To qualify, the worker must demonstrate prior unemployment of at least 6 continuous months or 8 non-continuous months within the 18 months preceding the application, earn a gross monthly wage equal to or less than 2.25 minimum monthly wages (IMM), and belong to a socioeconomic vulnerability bracket to be set by decree of the Ministry of Labor, capped at 60%. Persons with disabilities are exempt from this last requirement.
What this could mean for your company
The subsidy operates in two directions: a contribution for the company and another for the worker. Both can reach up to 20% of gross monthly wages, with differentiated formulas by income bracket.
For the company, the contribution is structured in ascending and descending brackets based on the worker's wage, capped at 2.25 IMM. For the dependent worker, the law distinguishes 3 brackets: ascending bonus (between 0 and 1 IMM), fixed bonus (between 1 and 1.25 IMM), and descending bonus (between 1.25 and 2.25 IMM). The worker's contribution can never be less than 2.5% of one IMM.
The benefit lasts up to 12 months. But if you hire persons with disabilities or your company qualifies as a micro or small enterprise, the period extends to 15 months.
However, there are conditions your company must meet to keep the subsidy. And if you breach them, the effect is immediate.
The company must be current on labor and social security obligations. If it registers 2 months of unpaid contributions (continuous or non-continuous), the subsidy ends. Companies recently convicted of anti-union practices, fundamental rights violations, or insolvency crimes also cannot participate.
The law declares incompatibility with other hiring benefits funded from the Budget Law. For fraudulent obtainment of the subsidy, it refers to Article 467 of the Criminal Code (fraud), with restitution of adjusted sums, interest, and Treasury collection.
What you can do now
Before July 2026: Review your current workforce. Identify how many workers could qualify within the 4 priority groups and in which wage brackets they fall. Cross-reference that information with your second-half hiring plans.
Before September 2026: Verify that your company is current on social security contributions and labor obligations. Any unpaid month is a direct risk: 2 months of unpaid contributions and you lose the entire subsidy. Also check whether there is any active conviction for anti-union practices or fundamental rights violations that would exclude you.
October 2026 (effective date): Apply for the subsidy directly through Sence. Both the company and the worker can apply. System parameters (vulnerability percentage, amounts) will be adjusted annually by decree, without requiring a statutory amendment.
If you currently have workers receiving SEJ, BTM, or the Youth Social Security Subsidy, note that those programs will cease to operate. The law provides a transition period until 2027 for current beneficiaries, but the SEJ portal has already stopped accepting new applications.
If you need to assess the impact of the SUE on your personnel cost structure or prepare the application, schedule a consultation with Cubillos Lama.
Access the full text of the law here: Law 21,808
This content is for informational purposes only and does not constitute legal advice for any specific case.