Temporary Incapacity, Retirement, and Unemployment Benefits
Temporary Incapacity: Cash Benefits
Cash benefits for temporary disability are designed to cover the loss of income that occurs when a worker, due to illness or accident, is temporarily unable to work and requires medical care. This applies to the following situations:
- Common or occupational disease
- Accidents
Duration of Temporary Incapacity Benefit
The maximum subsidy period is 12 months. A worker who disagrees with the discharge assessment may apply to the medical inspection. This period can be extended for another six months if it is believed that the employee may be discharged due to medical recovery during that time. After this extension, the National Institute of Social Security will review the worker’s status within three months to determine the appropriate degree of permanent disability. This qualification can be extended to a maximum of 24 months if a possible recovery is foreseen.
Temporary Incapacity and Unemployment
An employee may be in a situation of temporary incapacity. During this situation, their contract could be terminated. The benefits received depend on the type of contingency:
Deriving from Common Contingencies: The worker will continue receiving the benefit at the same rate as the unemployment benefit until discharge, after which they will collect unemployment benefits.
Deriving from Professional Contingencies: The worker will continue receiving the benefit at the same rate previously recognized until the situation is terminated, after which they will collect unemployment benefits.
Suspension or Cancellation of Subsidy
The right to benefit may be revoked or suspended for the following reasons:
- Fraudulent manipulation by the recipient.
- Working as a self-employed person.
- Rejecting or abandoning treatment without a reasonable cause.
It may also be terminated due to:
- Exhaustion of the maximum term.
- Medical discharge.
- Retirement.
- Failure to attend a medical examination without justification.
Ordinary Retirement
Workers are entitled to a regular retirement pension if they meet the following conditions:
- Are affiliated with Social Security and in a registered or equivalent situation.
- Have attained the age of 65 years and have ceased work activity.
- Have completed 15 years of contributions, with at least two of those years falling within the last 15 years immediately preceding the date of retirement.
Partial Retirement
Partial retirement can be accessed from the age of 61 if the following requirements are met:
- A minimum period of six years in the company.
- A minimum contribution period of 30 years.
Retirement of Those Over 65
A worker who retires at an age over 65 and has completed the qualifying period will receive an additional percentage of 2% per year to increase their retirement pension. This additional percentage will be 3% when the interested party has credited at least 40 years of contributions when they turn 65.
Unemployment Benefit
Entitlement to unemployment benefits begins the day after the legal situation of unemployment, provided the application is submitted within 15 days. Registration as unemployed and making activity commitments are also required. Late submission results in the loss of benefit days. Eligibility requirements for unemployment benefits include:
- Being affiliated and registered with Social Security.
- Being in a legal unemployment situation.
Healthcare
Social Security healthcare includes the provision of medical and pharmaceutical services. The beneficiaries of these services are registered workers, pensioners, and dependents of the former who live with the holder and are financially dependent.