A Guide to the Social Security System in Spain

All workers (employees, self-employed individuals, domestic workers etc.) must be registered with the Social Security system in one of the following regimes:

• General Contribution Regime

• Special Social Security Regimes (agricultural workers, civil servants, seamen, domestic employees, self-employed persons, public officers, etc.).

As a regular employee, a worker would be subject to the general contribution regime. In this regime, social security contributions are paid partly by the employer and partly by the employee. These payments vary according to different factors, but the average total payment may be estimated at 37.20% of the employee's monthly base (monthly salary plus proportional amount of extra payments-generally 2 a year) of which about 6.40% is paid by the employee and the remaining 30.80% by the employer. These percentages can vary slightly depending on several factors for example the type of contract, the sector in which you work etc. as well as from year to year. Essentially, the contributions made are categorised in the following way: general contingencies (the lion's share of the contribution), work-related accidents and professional illnesses, unemployment, professional training and a contribution to the salary guarantee fund (used in cases of company bankruptcy or other situations where companies are not able to meet their salary responsibilities). If the employee's monthly base (roughly speaking their gross monthly salary) is above the maximum amount (3,230.10 Euros for 2011), then these percentages will apply to that maximum figure. It is also important to note that your corresponding rights (unemployment benefit, pension etc) will also relate to this base which once again need not coincide with your actual salary if the latter is over the maximum limit.

The Social Security system provides cover in the following main areas:

a) Health assistance (maternity, common or professional illness, and accidents)

b) Financial assistance in the following cases: temporal incapacity, maternity, invalidity, retirement, unemployment, decease.

In order to avail of the financial assistance provided under the system, a certain number of conditions must be met which will vary according to the particular nature of the cover. For example, in the case of retirement, the worker must have reached the age of 65 and have made a minimum of 15 years' contributions of which 2 must have been within the last 15 years. The actual monthly amount due will depend on the following factors: 1) the regulatory base (essentially calculated as an average of past bases on which your social security contributions will have been made) 2) the applicable percentage applied to that regulatory base being 50% for a minimum of 15 years' contributions rising to a maximum of 100% for 35 years' contributions.

It is also worth bearing in mind that there are plans to modify the prevailing regulations in the near future although it is still not clear exactly what these modifications will be.

The author provides services to both foreign companies and individuals in Spain helping them get the appropriate legal, business and accounting assistance they require. To find out more click on the link - Lawyers Spain; Accountants Spain.

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