Good organisation of a business depends not only on strategy, but also on the correct management of labour issues. Among them, payroll plays a crucial role. It's essential that these reflect the reality and that there is rigorous oversight to allow for adaptation to any circumstances arising from ongoing regulatory changes in labour and Social Security matters. This avoids conflicts with workers and, especially, legal sanctions that can entail significant economic costs for the company.
Below, we take a look at the most common errors in payroll management and how to avoid them.
errors in social security contributions
WHAT IS THE CONTRIBUTION BASE?
The contribution base is the amount on which the contribution rates are applied to calculate the contributions that the company must pay to the Social Security authorities. This basis must accurately and precisely reflect the total monthly remuneration accrued by the worker, including all salary items, whether fixed or variable.
According to the General Social Security Law (LGSS), the contribution base is made up of the total monthly remuneration, and includes all salary payments, as well as the proportional part of the extraordinary payments.
what happens if the contribution is not paid correctly?
If it is underpaid: This can lead to penalties by the Labour Inspectorate (Inspección de Trabajo), surcharges and interest for late payment, as well as claims by the employee. In addition, it could affect the worker's rights to future benefits (for example, in case of temporary disability, unemployment or retirement).
If contributions are paid in excess of what is due: The company would be assuming an unnecessary extra cost, since it would be paying higher contributions without any legal obligation.
contribution ceilings: minimum and maximum
Minimum ceiling: Each contribution group has a minimum, and they all have to comply with the current Minimum Interprofessional Salary (Salario Mínimo Interprofesional (SMI)). In 2025, the SMI amounts to 15,876 euros per year; 1,323 euros per month if it is paid in 12 payments; 1,134 euros per month if it is paid in 14 payments.
Maximum ceiling: It is the same for all workers, regardless of the contribution group. In 2025, the maximum contribution ceiling is 4,909.50 euros per month.
In other words, the maximum limit is the same for all contribution groups, while the minimum varies depending on the contribution group in question, although the current minimum wage must always be respected. Here is a direct link to the Social Security website, where you can check the different types of contribution groups and their respective minimum and maximum bases: Contribution groups.
CONTRIBUTION GROUPS
To avoid any problems regarding the identification of the correct contribution group and, consequently, the worker's contribution, it is essential to have sound payroll advice from a team that can correctly identify the job position and salary in order to place the worker in the correct contribution group. It is also important to periodically review the groups of workers in relation to their duties, in case there have been changes that require a modification of the Social Security group.
Naturally, it is also very important to keep up to date with regulatory changes and the publication of new maximum and minimum bases (as well as changes in contingency rates).
Our expert payroll team will help you to resolve any and all queries regarding the contribution bases and how the Social Security payments work.
