Employment Law Updates 2019: Royal Decree-Law 28/2018, of 28 December

Royal Decree-Law 28/2018, of 28 December, establishes a series of employment measures that the Government considers urgent and priority matters.

Article written by

Josep Conesa Sagrera

Employment and insolvency lawyer

Josep Conesa is a Spanish and English-speaking labour lawyer who holds a master’s degree in European law and Fundamental Rights. Over 25 years of esperience. We’d be delighted to legally help you too, in your language whenever possible.

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We highlight here other measures that have a significant impact, such as:

• The increase in the maximum cap on the Social Security contribution base to €4,070.10
• The increase in contribution base brackets for Domestic Workers (with certain reductions available, please contact us for details)

  From 1 January 2019 onwards, inclusive, the contribution bases for common contingencies shall be those set out in the following scale, based on the monthly remuneration received by domestic workers, increased by the proportional share of the extra payments to which they are entitled, per employment relationship.

  Band	Monthly remuneration euros/month	Contribution base euros/month
  1st	Up to 240.00	206.00
  2nd	From 240.01 to 375.00	340.00
  3rd	From 375.01 to 510.00	474.00
  4th	From 510.01 to 645.00	608.00
  5th	From 645.01 to 780.00	743.00
  6th	From 780.01 to 914.00	877.00
  7th	From 914.01 to 1,050.00	1,050.00
  8th	From 1,050.01 to 1,144.00	1,097.00
  9th	From 1,144.01 to 1,294.00	1,232.00
  10th	From 1,294.01	Monthly remuneration

  CONTRIBUTION RATES (%)

  CONTINGENCIES	employer	employee	TOTAL
  Common	23.60	4.70	28.30

  Temporary disability (IT): 0.80%. Death and survival (IMS): 0.70%.

• Option for collective bargaining agreements to include clauses providing for termination of the employment contract when the employee reaches the statutory retirement age set out in Social Security legislation.

The employee must meet the requirements to be entitled to one hundred per cent of the standard retirement pension, and the measure must be established in the collective bargaining agreement and linked to coherent employment policy objectives, such as improving job stability by converting fixed-term contracts into permanent ones, hiring new workers, generational succession, or any other measures aimed at promoting quality employment as agreed through collective bargaining.

• 40% increase in the employer's Social Security contribution for common contingencies on fixed-term contracts with an effective duration of five days or fewer.