Social security contributions in detail

Both employers and employees must pay social security contributions. The contributions cover healthcare, sick pay, maternity and paternity benefits, invalidity benefits, pension and various survivors’ benefits, work accidents and illnesses, unemployment, a wage guarantee and occupational training.

Contribution rates vary according to the type of contract the worker has and in the case of accident insurance, the type of job performed. The rates are applied to the employee’s gross income, including any income in kind. The basic rate of employers’ contributions for employees with indefinite-term contracts is currently 29.90%, plus a contribution for work accidents and professional illness, based on the type of activity and ranging from 0.90 to 7.15%. These percentages are payable on income from a minimum of EUR 1,050 per month and capped at EUR 4,070.10 per month for 2020. 

The current rate for employees’ contributions for employees with indefinite-term contracts is 6.35%, also payable from a minimum of EUR 1,050 per month and capped at EUR 4,070.10 per month for 2019.

The employer is responsible for its own contributions and those of its workers. The employer withholds the contributions from salary and pays in the month after they the month to which they refer.

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Author: Sagardoy Abogados

Date: April 2020


Note: All currency conversions into EUR were made on 1 February 2019, using a mid-market rate.