Payment of social contributions

The obligation to pay social security contributions arises at the start of the worker’s employment relationship and ends when the employment relationship ends, as long as the Social Security General Fund (TGSS) is informed of the end of the employment relationship by the deadline: 3 days from the date work ceases.

Social security contributions are calculated on a monthly basis (assessment period), irrespective of the fact of the deadline for paying contributions falling in the subsequent calendar month (collection period).

The employer must request assessment and notify the TGSS of their employees’ contribution bases, which depend on the remuneration they receive. The employer must also communicate any changes. On the basis of these details and the information provided by other government authorities, the TGSS performs the assessment of contributions owed, which include the employer’s part and the employee’s part.

An employer who fails to communicate the necessary details for performing the assessment may be committing a labour-related administrative offence.

The social security contribution due is calculated by applying annually-established percentage rates to a contribution basis. This contribution basis is determined according to the monthly salary paid to the worker and must fall within a minimum and maximum amount, depending on the professional category.

For more information on the minimum and maximum bases and the contribution rates applicable to the various categories of employees, click on the following links:

• General social security category
• Household employees
• Employees, agriculture
• Special category for offshore workers
• Special category for the coal mining sector

There are various types of reduction and relief applicable to social security contributions. More information can be found at this link . To qualify, the company must be up to date with its tax and social security payment obligations.

Social security contributions are calculated by adding the contribution due from the employer and the employee’s contribution. Therefore, both are liable for contributions. However, it is the employer who is responsible for paying the money to the Social Security.

To this end, when paying employees their monthly wages, the employer must deduct the amount corresponding to their social security contribution. This amount must be withheld and paid the following month along with the employer’s contribution, once the TGSS has performed the relevant assessment.

Under the Spanish Social Security system, contributions are paid against the following risks:

1. non-occupational risks (ordinary illness, non-occupational accidents);

2. occupational risks (accidents at work, occupational illness); and

3. other risks and situations, such as unemployment, professional training and the wage guarantee fund.

Contributions for a given month must be paid during the following calendar month. Once the TGSS has performed the relevant assessment, it will provide a payment slip. You must pay the sum due through a financial institution that works with the TGSS. Payment may be made either by direct debit or online.

If you do not pay the contributions in the same month as the TGSS performed the assessment, you are liable for the corresponding surcharges.

If you have requested an assessment and have provided the necessary information:

• 10 % if you pay the contributions due in the first calendar month following the month in which the deadline for payment expired;
• 20 % if you pay the contributions due from the second calendar month following the month in which the deadline for payment expired.

Or, if you have not requested an assessment, the TGSS will issue a debt notice, applying the following surcharges:

• 20 % if you pay the contributions due by the deadline stated in the debt notice;
• 35 % if you pay the contributions due after this deadline.

If the debt is not paid, the TGSS will issue an enforcement notice, which will be communicated electronically. This document will state the corresponding surcharges, including interest where applicable.

Moreover, you will no longer be up to date with your social security obligations. To prevent this situation arising inadvertently, there is the general surety mechanism, which takes the form of a guarantee to cover payment of each and every one of the subject’s present and future debts to the TGSS, up to the limit of the sum guaranteed.

Once the enforcement notice has been issued, if you do not pay the corresponding amount, the enforced collection procedure will commence.

By the deadline

Social security contributions may be paid online or by direct debit from a bank account held with any authorised financial institution.

After the deadline

The corresponding debt notice, including surcharges and interest, will be issued and communicated electronically.

In this case, payment may be made:

• By bank card through the SEDESS online portal under ‘ Payment of social security debts by card’ ; or
• By transfer into the bank account stated in the debt notice;
• At a cash machine;
• At a Social Security counter.

You may check your outstanding or pending payments to the social security at any time and you can obtain a slip with the account number of the financial institution to which payment is to be made via the SEDESS portal, under ‘ Check outstanding payments and obtain payment document’.

You are liable for contributions from the date you start work until the date you communicate that you have finished, as long as this notification is made within 3 days, and you must pay your social security contributions monthly.

As a self-employed worker, you alone are responsible for paying your social security contributions.

The amount you have to pay to Social Security is calculated by applying a contribution rate to a monthly contribution base, set annually. The amount is determined by the projected monthly average of net income calculated on an annual basis, within a general scale set out annually in the General State Budget Act and limited by a minimum and maximum contribution base for each bracket. You may change your contribution basis according to your circumstances or interest, the amount to be paid being thereby increased or reduced.  You can obtain more information on the minimum and maximum bases and the contribution rates applicable to the various categories of self-employed workers:

• Special category for the self-employed
• Self-employed workers, agriculture
• Self-employed workers, offshore

The Social Security authorities check annually that the contribution bases you chose during the year correspond to the net income that you earned, taking into account the information on net income provided by the tax authorities (AEAT and regional tax authorities).

This initiates an annual adjustment process for contributions, which may result in an additional payment (where contributions have been made at a lower rate than would be appropriate based on income earned), a refund (in the opposite case), or no adjustment. The Treasury carries out the regularisation process automatically, and you receive a decision on the outcome.

There are various types of reduction and relief applicable to social security contributions. More information can be found at this link . To qualify, you must be up to date with your tax and social security payment obligations.

Under the Spanish Social Security system, contributions are paid against the following risks:

• Non-occupational risks (ordinary illness, non-occupational accidents);
• Occupational risks (accidents at work, occupational illness); and

other risks and situations, such as cease of work and professional training.

You must pay your social security contributions before the end of the month to which they relate.

If you do not pay your contributions in the corresponding month, the following surcharges shall apply:

• 10 % if you pay the contributions due in the first calendar month following the month in which the deadline for payment expired;
• 20 % if you pay the contributions due from the second calendar month following the month in which the deadline for payment expired.

If the debt is not paid, the TGSS will issue an enforcement notice, which will be notified to you electronically. This document will state the corresponding surcharges, including interest where applicable.

Upon issue of the enforcement notice, the enforced collection procedure will commence.

By the deadline

The only option for payment is direct debit.

After the deadline

Once the enforcement notice has been issued, it will be notified electronically.

You must pay the amount stated using any of the following methods:

• By bank card through the SEDESS online portal under ‘ Payment of social security debts by card ’; or
• By transfer into the bank account stated in the debt notice;
• At a cash machine;
• At a Social Security counter.

At any time, you may consult your debt or assessments pending payment to the social security and obtain a slip with the account number of the financial institution to which payment is to be made, via the SEDESS portal under ‘ Check outstanding payments and obtain payment document’ .