Social security contributions in detail

Both employers and employees must pay social security contributions.

The basic rate of employers’ contributions for employees with indefinite-term contracts is currently 29.90%, calculated on employees’ gross salary, plus a contribution for work accidents and professional illness, based on the type of activity and ranging from 0.90 to 7.15%, payable from a minimum of EUR 1,050 per month and capped at EUR 4,070.10 per month for 2019. 

The current rate for employees with an indefinite-term contract 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 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 employer is responsible for its own contributions and those of their 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: March 2019


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

 

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