Several authors have demonstrated a negative relationship between unemployment and economic growth, suggesting that companies should implement strategies to retain their workers within the organization. This strategy involves organizations’ concern for providing jobs that reduce employee turnover and companies’ commitment to offering attractive job opportunities. However, the role of the Government is also essential in enabling employment by regulating the protection of workers while offering support to companies to hire. The use of taxation is a powerful public policy tool. In this way, Governments should increasingly seek to integrate social aspects into their tax policies to encourage companies to use different forms of remuneration tailored to the specific needs of their employees, thereby improving their corporate social responsibility (CSR) and job creation. In this context, the Social Utility Regime (hereafter Social Tax Incentive) appears in Portugal as a tax incentive for companies to establish social, educational, and cultural support infrastructures, among others, for the benefit of the company's employees, their families, and pensioners. Therefore, this study examines the impact of tax incentives on corporate social spending and job retention in Portugal. Specifically, it examines the Social Utility Regime, a fiscal policy tool enabling companies to invest in social, educational, and cultural support for their employees. Using data from 2011 to 2021 provided by the Portuguese Tax Authority and the SABI database, the study analyses the impact of these incentives on employment and wage-related indicators. Bivariate and regression analyses were performed to test four hypotheses concerning employment levels, wage growth, research, and development (R&D) employment, and gender hiring trends. The results suggest a significant positive correlation between social tax incentives and increased R&D employment, wage growth, and female recruitment. However, awareness of and uptake of the incentive remain low, indicating a need for greater Government promotion.