Understanding the Spanish Social Security System: Benefits and Requirements

Posted on Nov 26, 2024 in Law & Jurisprudence

Social Security Schemes

The Spanish Social Security system is a public system with universal schemes, aiming to provide adequate assistance and benefits to the entire population in times of need.

General Scheme

The General Scheme offers broad collective protection, including employees in industry and services of capitalist corporations. It also covers certain officers, civil servants, and local, regional, or state government officials. It has integrated former special schemes (railway workers, athletes, trade representatives, artists, bullfighters, and writers). Special systems for particular activities are included within the General Conditions, with specific rules for affiliation, registration, and contribution recovery, while common rules apply to other matters.

Special Arrangements

Certain activities require specific laws and protective actions distinct from the General Scheme due to their nature, peculiar conditions of time and place, or production processes. These special arrangements include:

  • Workers in farming, forestry, and livestock
  • Employed or independent mariners
  • Public officials (civil and military)
  • Household employees
  • Students
  • Coal mining workers

Social Security Administration Agencies

  • National Institute of Social Security (INSS): Manages contributory cash benefits and healthcare rights recognition, applying national and international standards.
  • National Institute for Public Health (INGESA): Manages healthcare benefits in Ceuta and Melilla and handles the rights and obligations of the former Health Institute.
  • Treasury for Social Security (TGSS): Collects economic resources (contributions) and manages registrations, memberships, cancellations, etc., for employers and workers.
  • Institute for the Elderly and Social Services (IMSERSO): Addresses disability pensions, non-contributory pensions, and social services in Ceuta and Melilla.
  • Social Institute of the Marine (ISM): Administers and recognizes benefits for maritime workers.

Mutual Societies for Accidents and Occupational Diseases collaborate in managing benefits derived from professional activities. Companies collect contributions and pay some benefits.

Main Duties of Employers and Workers

  • Company Registration: Companies must register with Social Security before starting activities and hiring, receiving a unique identification number.
  • Formal Coverage: Registered companies must choose to insure occupational hazards with Social Security or a Mutual Society for Accidents and Occupational Diseases (AMTSL).
  • Worker Membership and Registration: Administrative acts completed before starting work (requested within one working day), assigning a lifetime membership number to the worker.
  • Data Modification and Termination: Administrative acts to communicate work termination or changes in company or worker data, formalized within 6 calendar days (10 for AMTSL).
  • Contribution: Economic contributions from employers and employees, due upon registration, paid monthly using forms TC1 and TC2.

Protective Action

The system covers contingencies and provides economic and non-economic benefits to address distress or specific needs, often resulting from income loss or increased expenses. Benefits are contributory or non-contributory:

  • Contributory: For workers and their immediate families who meet minimum contribution period requirements.
  • Non-contributory: For individuals with limited resources who have not contributed or have insufficient contribution periods.

Benefits include: healthcare, temporary disability, risk during pregnancy or breastfeeding, maternity and paternity leave, permanent disability (contributory and non-contributory), permanent non-disabling injuries, retirement (contributory and non-contributory), death and survival benefits (widows, orphans), family benefits (contributory and non-contributory), unemployment benefits, social services, compulsory pension insurance and disability (SOVI), and student insurance.

Specific Benefits

  • Healthcare: Medical and pharmaceutical services to preserve or restore health and work capacity.
  • Temporary Disability: Daily allowance covering income loss during temporary inability to work and receive healthcare.
  • Benefits for Risk During Pregnancy and Breastfeeding: 100% subsidy of the professional base salary when the contract is suspended for these reasons.
  • Maternity Allowance: Subsidy for employed or self-employed individuals during maternity, adoption, or foster care leave.
  • Paternity Allowance: 100% subsidy of base salary for 13 consecutive days (or 20 days for large families or those with a disabled person), extendable by 2 days per child from the second in multiple births, adoptions, or fostering.
  • Permanent Non-Disabling Injuries: Financial compensation for injuries, maiming, and deformities from occupational accidents or diseases that do not affect work capacity but decrease physical integrity.
  • Permanent Disability: Granted when a worker, after treatment and medical discharge, has severe anatomical or functional reductions that diminish or cancel their working capacity.
  • Retirement: An annuity determined by individual conditions, amount, and manner established by regulations, upon reaching the established age and terminating employment.
  • Death and Survival Benefits: For families of deceased workers or pensioners who were economically dependent on them.

Unemployment Protection

Unemployment includes: authorized termination or suspension of employment, authorized temporary reduction of working hours, return to Spain after working abroad, release from prison, involuntary termination of office for local authorities, trade union representatives, and senior government officials. Protection is contributory (‘unemployment benefit’) or non-contributory (‘jobless benefit’).

Unemployment Benefit

For those able and willing to work who lose their jobs or have their working hours reduced by at least one-third. Eligibility requires: legal unemployment status, not having reached retirement age, actively seeking employment, accepting suitable placement and signing an activity agreement, and having contributed at least 360 days in previous years. The amount is 70% of the base salary for the first 180 days, then 60%, with minimums and maximums based on the IPREM (Public Multiple Effects Income Indicator) and family circumstances.

Jobless Benefit

For unemployed job seekers who do not refuse suitable job offers or training. Eligibility requires: monthly income below 75% of the SMI (Minimum Interprofessional Salary), excluding extra payments. The amount is 80% of the current monthly IPREM, with increases for those over 45 with family responsibilities (107% of IPREM with two dependents, 133% with three or more).