Social Security Benefits and Contributions in Spain

Posted on Jan 21, 2025 in Business Administration and Management (BAM)

**Social Security Protection in Spain**

There are two types of protection:

  • Contributory: Based on contributions made by workers and their employers.
  • Non-contributory: Based on economic need, regardless of whether a prior contribution has been made.

Social Security Structure

  • General Scheme: Covers most employed workers.
  • Special Regimes: Cover specific groups, such as agricultural workers, sea workers, civil servants, students, and homemakers.

Employer Obligations

  • Company Registration: Mandatory for all companies.
  • Membership: Mandatory and unique for the entire system, resulting in the assignment of an affiliation number.
  • Registration and Deregistration of Employees: Employers must register and deregister their employees with Social Security.

Summary of Contributions

Social Security is primarily financed through contributions from both employers and employees. Currently, the employer’s contribution is 23.60%, and the employee’s is 4.7%.

**Social Security Benefits**

Healthcare

This is a universal right in Spain, provided through the Social Security system, offering healthcare services and assistance.

Maternity Leave

Provides a period of rest and financial aid.

  • Beneficiaries: Employed or self-employed workers, or those in similar situations.
  • Contribution Requirements: 180 days of contributions within the last 7 years or 360 days throughout their working life. No minimum contribution period is required for those under 21. For those aged 21-26, 90 days in the last 7 years or 180 days in their working life are required.
  • Duration: 16 weeks.
  • Benefit Amount: 100% of the contribution base.

Paternity Leave

Provides a period of rest and financial aid during the suspension of the employment contract.

  • Beneficiaries: Fathers who have contributed for at least 180 days in the last 7 years.
  • Duration: 13 days + 2 days.
  • Benefit Amount: 100% of the contribution base.

Permanent Disability

An economic benefit that covers lost income due to illness or accident.

  • Partial Disability: The worker can continue working but with reduced capacity. The benefit is 24 times the monthly contribution base.
  • Total Disability: The worker cannot continue in their profession but can work in another. The benefit is 55% of the contribution base, increasing by 20% after age 55.
  • Absolute Disability: The worker cannot work in any profession. The benefit is 100% of the contribution base.
  • Severe Disability: The worker needs assistance for daily activities. The benefit is 150% of the contribution base.

Retirement

  • Requirements: Generally, the retirement age is 65. Workers must have contributed for at least 15 years, with 2 of those years within the last 15 years.
  • Benefit Amount: 15 years of contributions yield 50% of the contribution base, while 35 years yield 100%.

Temporary Incapacity

  • Eligibility: Workers who are registered with Social Security and have contributed for at least 180 days in the 5 years prior to the event, if due to common illness or non-work-related accident.
  • Benefit Amount: Depends on the contribution base and applicable percentages.
    • Common Illness or Non-Work-Related Accident: 60% from the 4th to the 20th day, and 75% from the 21st day onwards.
    • Work-Related Accident or Occupational Disease: 75% from the day following the start of the leave.
  • Duration: Cannot exceed 12 months, extendable by 6 months if recovery is expected.

Unemployment

  • Eligibility: Individuals who are willing and able to work but have lost their job temporarily or permanently, or have had their working hours reduced. They must be registered with Social Security, be in a legal unemployment situation, actively seeking employment, not be of retirement age, and have contributed for at least 12 months in the last 6 years.
  • Duration: Ranges from 120 to 720 days.
  • Benefit Amount: Calculated based on the average contribution base of the last 180 days. The percentages are 70% for the first 180 days and 60% from the 181st day onwards.
    • Maximum Limits: 175% of the IPREM (Public Indicator of Multiple Effects Income) plus 1/6 without children, 200% plus 1/6 with one child, and 225% plus 1/6 with two or more children.
    • Minimum Limits: 80% of the IPREM plus 1/6 without children, and 107% plus 1/6 with children.
  • Application: The worker must register as a job seeker and apply for unemployment benefits within 15 days of becoming unemployed.