Paying social security contributions

Categories of employees

• When does the obligation to pay contributions arise, and when does it end?

  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.

• How is the contribution I have to pay calculated?

  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

• Can I benefit from any kind of reduction on the contribution payable?

  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.

• Who is responsible for paying social security contributions?

  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.

• What risks are protected by employer and employee social security contributions?

  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.

• What is the deadline for paying contributions?

  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.

• What happens if I miss the deadline for payment?

  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.

• How to pay

  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’.

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Categories of self-employed workers

• When does the obligation to pay contributions arise, and when does it end?

  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.

• Who is responsible for paying social security contributions?

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

• How much do I have to pay?

  The amount you must pay to the Social Security is calculated by applying an annually-established percentage contribution rate to a contribution basis, which you must select annually and which must fall within a minimum and maximum amount. 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

• Can I benefit from any kind of reduction on the contribution payable?

  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.

• What risks are protected by your social security contributions?

  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.

• What is the deadline for paying contributions?

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

• What happens if I miss the deadline for payment?

  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.

• How to pay

  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’ .

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Can I request deferment of the payment of contributions?

Employers and self-employed persons and, in general, those with unpaid social security contributions who have cashflow difficulties and meet certain conditions, can request a deferral of payment of their debts or regular contributions, so long as they make the request within the statutory period for payment. Deferrals are subject to an interest rate for delayed payments that applies to the whole period of deferral. For more information, please follow  this link.

Social security contributions considered non-deferrable, such as contributions for accidents at work and occupational illness and those corresponding to the employee’s contribution, cannot be deferred. For more information on which contributions can and cannot be deferred, click here .

Deferment may be requested via the SEDESS portal under ‘ Deferment of payment of social security debts ’. You must have an online ID. If you are not obliged to interact electronically with the Social Security and you wish to request a deferment of payment, you can submit a request for personal attention through the Social Security General Treasury portal or the IMPORTASS Social Security app . You will have to attach a copy of your identity document, and you will need an email address and an electronic device with a camera.

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When does the enforced collection procedure commence?

An enforcement action for the recovery of payment is activated automatically  at the end of a voluntary payment period when an enforcement order for recovery of payment is issued as a result of an unpaid debt. This is independent of any administrative appeal which the parties concerned may file.

When an enforcement action for the recovery of payment is activated, a surcharge is triggered immediately which may be at a rate of 20 % or 35 % plus interest. You can find more information here .

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