Below we set out the contribution rates that will apply during the 2006 financial year.
Written by Josep Conesa
Employment and insolvency lawyer
MAXIMUM AND MINIMUM CAPS ON Social Security CONTRIBUTION BASES:
The maximum cap on the contribution base under each Social Security scheme that has one established is set, with effect from 1 January 2006, at €2,897.70 per month.
During 2006, the contribution bases under the Social Security schemes will have as their minimum cap the amounts of the national minimum salary in force at any given time, increased by one sixth, unless otherwise expressly provided.
The CONTRIBUTION RATES UNDER THE GENERAL Social Security SCHEME for 2006 will be as follows:
a) For common contingencies, 28.30 per cent, of which 23.60 per cent is payable by the company and 4.70 per cent by the employee.
b) For work accident and occupational illness contingencies, the premium rates set out in Annex 1 of Royal Decree 2930/1979, of 29 December, will apply, reduced by 10 per cent, with the resulting premiums payable exclusively by the company.
ADDITIONAL overtime CONTRIBUTIONS during 2006 as established under Article 111 of the Consolidated Text of the General Social Security Act, the following contribution rates will apply:
a) Where overtime is worked due to force majeure, the rate will be 14.00 per cent, of which 12.00 per cent will be payable by the company and 2.00 per cent by the employee.
b) For overtime not covered by the preceding paragraph, the rate shall be 28.30 per cent, of which 23.60 per cent shall be borne by the company and 4.70 per cent by the employee.
· From 1 January 2006, the maximum Social Security contribution base for common contingencies applicable to COMMERCIAL REPRESENTATIVES shall be the generally applicable rate of €2,897.70 per month or €96.59 per day.
· For the purposes of determining the maximum Social Security contribution base for common contingencies applicable to PERFORMING ARTISTS during 2006, the following shall apply:
a) The maximum contribution base for all groups within the various professional categories shall be €2,897.70 per month.
However, the overall ceiling on contribution bases in respect of the activities carried out by a performing artist — whether for one or more employers — shall be calculated on an annual basis, determined by annualising the maximum monthly base set out above.
· For the purposes of determining the maximum Social Security contribution base for common contingencies applicable to BULLFIGHTING PROFESSIONALS during 2006, the following shall apply:
The maximum contribution base for all groups within the various professional categories shall be €2,897.70 per month. However, the overall ceiling on contribution bases for bullfighting professionals shall be calculated on an annual basis, determined by annualising the maximum monthly base set out above.
CONTRIBUTIONS UNDER THE Special Scheme for Self-Employed Workers (RETA).
Under the Special Scheme for Self-Employed Workers (RETA), the minimum and maximum contribution bases and contribution rates applicable from 1 January 2006 shall be as follows:
a) The maximum contribution base shall be €2,897.70 per month. The minimum contribution base shall be €785.70 per month.
b) The contribution base for self-employed workers who, as at 1 January 2006, are under 50 years of age shall be chosen by them from within the maximum and minimum bases set out in the preceding paragraph.
The contribution base for self-employed workers who, as at 1 January 2006, are aged 50 or over shall fall between €809.40 and €1,509.60 per month, except where the worker is the surviving spouse of a business owner who, following the owner's death, has had to take over the running of the business and register under this Special Scheme at the age of 45 or over — in which case the choice of contribution base shall fall between €785.70 and €1,509.60 per month.
However, self-employed workers who, before reaching the age of fifty, had contributed to any scheme within the Social Security system for five or more years may maintain during 2006 the contribution base from 2005, increased by a percentage falling between the increases applied to the minimum and maximum contribution bases under this Scheme.
c) In the case of workers aged 30 or under, or women aged 45 or over registered under this Special Scheme on the terms set out in the thirty-fifth additional provision of the consolidated text of the General Social Security Act, in the wording prior to the amendment introduced by Law 2/2004 of 27 December, on the General State Budget for 2005, the contribution base shall be the amount chosen by them from the following figures: €610.80 and €2,897.70 per month, except where the limits referred to in the last two paragraphs of the preceding section apply.
d) The contribution rate under this Special Social Security Scheme shall be 29.80 per cent. Where the person concerned has not opted for coverage in respect of temporary disability (IT), the contribution rate shall be 26.50 per cent.
e) For contingencies relating to work-related accidents and occupational illnesses, the percentage rates set out in the premium schedule contained in Annex 2 of Royal Decree 2930/1979 of 29 December shall apply to the contribution base chosen by the person concerned.
CONTRIBUTIONS UNDER THE SPECIAL SCHEME FOR DOMESTIC WORKERS.
Under the Social Security Special Scheme for Domestic Workers, the contribution base and rate applicable from 1 January 2006 shall be as follows:
a) The contribution base shall be €610.80 per month.
b) The contribution rate under this Scheme shall be 22.00 per cent, of which 18.30 per cent shall be borne by the employer and 3.70 per cent by the employee. Where the domestic worker provides services on a part-time or discontinuous basis for one or more employers, the full amount of the corresponding contribution shall be the exclusive responsibility of the worker.
CONTRIBUTIONS FOR UNEMPLOYMENT, THE WAGE GUARANTEE FUND AND VOCATIONAL TRAINING.
Contributions for the contingencies of Unemployment, the Wage Guarantee Fund and Vocational Training shall be made, from 1 January 2006 onwards, in accordance with the provisions set out below:
From 1 January 2006, the contribution rates shall be as follows:
A. For the unemployment contingency:
a) Permanent contracts, including permanent part-time contracts and permanent seasonal contracts, as well as fixed-term contracts under the modalities of training contracts, insertion contracts, relief contracts, temporary replacement contracts, and any contracts — regardless of the type used — entered into with workers with disabilities: 7.55%, of which 6.00% shall be borne by the employer and 1.55% by the employee.
b) Fixed-term contracts:
1.- Full-time fixed-term contracts: 8.30%, of which 6.70% shall be borne by the employer and 1.60% by the employee.
2.- Part-time fixed-term contracts: 9.30%, of which 7.70% shall be borne by the employer and 1.60% by the employee.
Where a fixed-term contract, whether full-time or part-time, is entered into by a temporary employment agency in order to place the contracted workers at the disposal of client companies: 9.30%, of which 7.70% shall be borne by the employer and 1.60% by the employee.
B. For contributions to the Wage Guarantee Fund: 0.40%, borne exclusively by the company.
C. For Vocational Training contributions: 0.70%, of which 0.60% shall be borne by the company and 0.10% by the employee.
D. Contributions under training contracts.
During 2006, Social Security contributions for employees engaged under a training contract shall be made in accordance with the following:
a) Social Security contributions shall consist of a fixed monthly amount of €32.24 for common contingencies, of which €26.88 shall be borne by the employer and €5.36 by the employee, plus €3.70 for occupational contingencies, borne by the employer.
b) Contributions to the Wage Guarantee Fund (Fogasa) shall consist of a monthly amount of €2.06, borne exclusively by the employer.
c) Vocational Training contributions shall consist of a monthly amount of €1.13, of which €0.99 shall be borne by the employer and €0.14 by the employee.
d) Remuneration received in respect of overtime shall be subject to the additional contribution referred to in Section Two.3 of this article.
