Social Security

Payment

The amounts to be paid to Social Security, called payments, are calculated applying the rate to the contribution basis.

Contribution basis

The contribution base for this Special Scheme will be chosen by the worker between the corresponding minimum and maximum bases.

During the year 2011 the base chosen will lie between a minimum contribution base of 850.20 euros per month and a maximum contribution base of 3,230.10 euros per month.

Self-employed workers, who on 1 January 2011 are under 48 years of age, will choose their own contribution base, as long as it is within the limits of the maximum and minimum bases.

Self-employed workers will also be able to choose their own contribution base if on that date they are aged 48 or 49 and their contribution base in 2010 was greater than or equal to 1,665.90 euros per month or they become affiliated with that special scheme. If the contribution base was less than 1,665.90 euros per month, they may not choose a base greater than 1,682.70 euros per month, unless they make this choice before 30 June 2011, which will be effective as of 1 July that same year, or they are the surviving spouse of a business owner who, as a result of the death of their spouse, has had to take over the running of the business and become affiliated in this special scheme at 48 or 49 years of age, in which case said limit will not be applicable.

Workers who have reached the age of 50 or over by 01.01.10, may choose a contribution base between 916.50 and 1,682.70 euros per month, unless they are the surviving spouse of the owner of a business that they have had to take over themselves as a consequence of the death of their spouse and become affiliated in the RETA at 45 years of age or over (between 850.20 and 1,682.70 euros per month).

However, the contribution bases of self-employed workers who become affiliated with the Scheme, and who prior to turning 50 have paid contributions into any of the Schemes of the Social Security System for 5 years or more, will be governed by the following rules:

• If the last certified contribution base was less than or equal to 1,665.90 euros per month, they must make contributions using a base between 850.20 and 1,682.70 euros per month.
  
• If the last certified contribution base was less than or equal to 1,665.90 euros per month, they must make contributions using a base between 850.20 per month and the amount of that base increased by a percentage equal to the increase in the maximum contribution base of this Special Scheme (1%).

To this end the last certified contribution base is considered to be the last at which the worker has made contributions, irrespective of whether the worker is 50 years old or not.

Workers who carry out street trading or door-to-door sales (CNAE 09.4781, 4782, 4789 and 4799) can choose the established general minimum contribution base in the Scheme- 850.20 euros per month - or a contribution base of 748.20 euros per month.

Self-employed workers who carry out door-to-door sales (CNAE 09.4799 - door-to-door retail trade) can choose the established general minimum contribution base in the Scheme - 850.20 euros per month - or a contribution base of 467.70 euros per month.

The worker-members of Associated Work Cooperatives for street traders, who receive income directly from shoppers, will be included, for the purposes of the Social Security, in the Special Scheme for Self-Employed Workers.

These workers can choose the established general minimum contribution base in the Scheme (850.20 euros per month) or the contribution base of 748.20 euros per month, unless they prove that the street trading is done in traditional markets or street markets, with a working day of less than 8 hours/day, in which case they may choose a base of 850.20 euros per month or a base of 467.70 euros per month. This selection of contribution bases will be applicable to people who work alone as street traders in traditional markets or street markets, with a working day of less than 8 hours/day, as long as they do not have their own fixed establishment or produce the items or products that they sell.

In any event, they must make contributions for the contingencies of work-related injuries and occupational diseases, applying on top of the chosen contribution base, the premium rates set forth in the Fourth Additional Provision of Law 42/2006, of 28 December, on the 2007 General State Budget, as amended by the Eighth Final Provision of Law 26/2009, of 23 December, on the 2010 General State Budget.

These specific minimum bases can only be applied by workers or worker-members who work exclusively in sales, and do not include those who, in addition, make or manufacture the products that are being sold.

Workers who have been automatically affiliated in the Special Scheme, whatever their age at the time of affiliation, can also choose, as a result of this, and upon an automatic termination of affiliation in the General Scheme of the Social Security or a different scheme for employees, between continuing to make contributions at the rate they were making contributions at when the termination occurred or choosing a different contribution base by applying the general rules set forth for these purposes in this Special Scheme.

In accordance with the First Transitional Provision of the Contribution Order, workers included in this special scheme who, on the date that the new contribution bases came into effect, have chosen the maximum contribution bases allowed up to that time, have until 28 February to choose any contribution base between the amount they were previously making contributions at and the maximum applicable limit, and can pay in these contributions with no surcharge until 31 March. The new chosen base will come into effect on 01.01.11.

Law 20/2007, of 11 July, of the Self-Employed Workers' Statute, creates the legal definition of a financially dependent worker for those self-employed workers who are basically working for a customer, from whom they receive at least 75% of their income and with whom they are linked with a specific written contract.

Royal Decree 197/2009 of 23 February, implements the provisions in said contract by law.

The possibility of establishing different contribution bases for these workers was an issue considered in the Statute, however, no regulations have been drawn up on this issue for 2011.

Regarding insurance, these workers have obligatory coverage for temporary disability arising from common contingencies, work-related injuries and occupational diseases, and must make contributions for these contingencies.

Application to change contribution base.

Self-employed workers can change their contribution base two times per year, thereby choosing another of the contribution bases set forth in this regulation, as long as they request this at the Provincial Directorate or Administrative Office of the General Treasury of the Social Security, or through the Internet Service, before 1 May, coming into effect on the following 1 July, and before 1 November, coming into effect on 1 January of the following year. This application must be done through the Electronic Office > Citizens> Services with a Digital Certificate and/or Services with a SILCON Certificate>. Application to Change Contribution Base (Self-Employed Workers).

If the worker is making contributions at any of the maximum bases of the RETA, they can apply to have their contribution base automatically increased by the same percentage as the rise in the maximum contribution bases, until they reach the maximum limit. Likewise, even if the worker is not making contributions at the maximum bases, they can apply to have their contribution base automatically increased by the same percentage as the rise in the maximum contribution bases, until they reach the maximum limit applicable to the worker.

Applications made prior to 1  November each year will be effective as of 1 January the following year.

The waiver of these options can be done within the same time period and will be effective as of 31 December of the year in which the application is submitted

Contribution benefits.

Self-employed workers who are aged 65 or over and have 35 certified years or more of effective contributions to the Social Security, will be exempt from making contributions, except for temporary disability and, where appropriate, for occupational contingencies, in accordance with provisions set forth in the thirty-second additional provision of the General Social Security Act.

As a result of this, self-employed workers who are not covered for temporary disability and meet the specified requirements will be exempt making any contributions.

Self-employed workers who choose to have coverage for said contingency must apply a rate of 3.3%, and pay in the relevant premium for occupational contingencies, if they have chosen to be covered for them.

Without prejudice to the exemption set forth in the regulation, the self-employed worker may choose to continue making contributions in accordance with the contributions they were making previously.

Workers included in the RETA (including Worker-Members of Associated Work Cooperatives), as from the coming into force of the Self-Employed Workers' Statute, who are aged 30 or under (35 years old for women), will receive a reduction to their contributions for common contingencies for the 15 months following the date the affiliation comes into effect. This will be equivalent to 30% of the contributions resulting from applying the minimum rate in force (29,80% or 29.30% if they are covered by out-of-work protection) to the minimum contribution base in this scheme, and a allowance of the same amount in the 15 months following the end of the aforementioned reduction.

This reduction will be payable by the Social Security budget, while the allowance will be payable by the Public State Employment Service budget (thirty-fifth additional provision of the General Social Security Act).

These benefits will be applicable both if it is an initial or successive affiliation in the Scheme as a result of restarting their activity as from 1 January 2005. In order for said affiliation to be considered as successive, for these purposes, it must not be continuous, with at least one calendar month between the date that the previous termination of affiliation came into effect and the date that the new affiliation came into effect.

It will have a total duration of 30 uninterrupted months, irrespective of the periods of non-affiliation to the Scheme during said period and which will be taken into account for the purposes of calculating the 30 months.

Self-employed workers who have stopped working as self-employed because of maternity and have taken the corresponding leave, and who start working again in the two years following the birth, are entitled to an allowance of 100% of the contributions for common contingencies that results from applying the contribution rate to the current minimum base for the Scheme, for 12 months. In order to access this contribution allowance, the female worker must take, at least, the obligatory maternity leave period of 42 calendar days (6 weeks) after the birth.

Stopping self-employed work does not require a definitive termination (termination from RETA), as it can be temporary (maternity leave).

Self-employed workers replaced during leave for maternity, adoption, foster care, paternity, risk during pregnancy or risk during breast feeding with subsidised interim contracts entered into with unemployed persons (Royal Decree Law 11/1998, of 4 September), are entitled to an allowance of 100% of the contribution that results from applying the compulsory contribution rate (29.80%) to the minimum base for this Scheme.

This bonus will be effective while their activity is suspended for the above mentioned reasons and the substitute's temporary contract is in force, while these coincide, up to the maximum limit, which is, in any case, the period of suspension.

Self-employed, full-time workers, including worker-members of associated work cooperatives, who carry out activities included in the retail, catering, tourism and industry (except energy and water) sectors and who live and work in Ceuta or Melilla are entitled to an allowance of 40% of the contributions for common contingencies for two years, counting from the first day of the month after TAS Order/471/2004, of 20 February, which sets out the rules for its implementation, came into effect; that is, up to the March 2006 payment period inclusive.

By means of TIN Order/530/2010, of 5 March, the application of these allowances is extended up to the payment period for March 2012, inclusive.

Disabled person who initially became affiliated to the RETA are entitled to a bonus of 50% of the contribution that results from applying the current rate to the Scheme's minimum base for 5 years after the effective date of affiliation.

In accordance with the criterion set forth by the Public State Employment Service, the organisation responsible for paying this allowance, in order for this affiliation to be considered initial, it is necessary that the affiliation was originally in this Scheme (strict interpretation of the concept of initial affiliation).

These benefits are also applicable to members of Associated Employment co-operatives who are included in the RETA and meet the established requirements.

Self-employed workers who become affiliated to the Social Security after the deadline, will not receive any allowances to their contributions until they have paid in the contributions corresponding to the periods before the affiliation was formalised, those workers that become affiliated after the deadline, cannot be considered to be up-to-date with the Social Security, which is a requirement for accessing these allowances.

Workers who carry out agricultural work as from 1 January 2008, who are included in the Special Scheme and are 40 years old or under when they become affiliated and are the spouse or descendents of the farm owner, will apply a reduction of 30% of the contribution resulting from applying the rate of 18.75%, onto the contributions for obligatory common contingencies, for 5 years.

Worker-members of associated work cooperatives working as street traders who, prior to 31 December 2010, were included in the Special Scheme for Self-Employed Workers, in accordance with the provisions of Article 120.Four.8 of Law 2/2008 of 23 December, of PGE for 2009, will be entitled to a reduction of 50% in the contributions to be paid during 2011.

Worker-members of associated work cooperatives working as street traders, who started their activity and were included in the Special Scheme as of January 2009, will also be entitled to this reduction.

This reduction will be applied to the contribution resulting from applying the applicable contribution base (29.80% or 29.30% if the interested party has signed up for the out-of-work protection system) to the minimum selected base. 

Self-employed workers who, by virtue of simultaneously working as an employee, have made contributions in 2010, for common contingencies in the Multi-Activity Scheme and taking into account both the employer and the worker contributions to the General Scheme, as well as the annual contributions made to the Special Scheme for an amount greater than or equal to 10,860.00 euros, will be entitled to a refund of 50% of the amount by which the contributions paid in exceed the aforementioned amount, up to a limit of 50% of the contributions paid in to the Special Scheme, by virtue of their contributions for obligatory common contingencies.

For the purposes of calculating the 10,860.00 euros, it must be stated that the amounts that have been deferred should not be taken into account.

The refund will be paid at the request of the interested party, who must make this request in the first four months of 2011.

Contribution rate.

During 2011, in this Special Scheme it will be 29.80% or 29.30% if the interested party has signed up for the out-of work protection system. When the interested party is not covered for temporary disability, the contribution rate will be 26.50% in this Scheme.

In accordance with Law 32/2010 of 5 August, which provides for a specific protection system for out-of-work self-employed workers that were covered for the contingencies of work-related injuries and occupational diseases, the established contribution rate for the aforementioned contingency is 2.2%. Self-employed workers who have signed up for the out-of-work protection system will have a reduction of 0.5% in their contributions for temporary disability coverage arising from common contingencies.

For Work-Related Injuries and Occupational Diseases, the Table of Premiums set forth in the Forth Additional Provision of Law 42/2006, of 28 December, on the 2007 General State Budget, as amended by the Eighth Final Provision of Law 26/2008 of 23 December, on the 2010 General State Budget, will be applicable.Table of Premiums - Fourth Additional Provision

Workers who have not opted for coverage of the contingencies of work-related injuries and occupational diseases, will make an additional contribution of 0.10% onto the chosen contribution base, in order to pay for the benefits of risk during pregnancy and risk during breastfeeding.

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