Amount / Payment

The financial benefit for total permanent disability (TPD) consists of a lifetime monthly pension that, under exceptional circumstances, may be substituted for a lump-sum payment, when the beneficiary is under the age of 60.

Pension amount

The amount of the TPD pension is calculated by applying the corresponding percentage to the regulatory base (RB), in accordance with the cause of the disability.

If it is the result of a common disease, the amount of the pension  cannot be less than 55% of the minimum contribution base for persons over 18 years of age in force at any given time, calculated in annual terms.

Percentage

  • General rule:

    55% of the RB. This percentage may be increased by 20% for beneficiaries over the age of 55 when it is difficult to gain employment in an activity different from the habitual one, due to a lack of general or specialised training and the social and employment conditions at their place of residence.
  • In cases in which a worker, who has reached or is above the ordinary retirement age, accesses the pension for TPD arising from common contingencies, due to failing to meet the requirements for accessing the retirement pension:

    The applicable percentage corresponds to the minimum contributory period established at any given moment to be eligible for the retirement pension. The percentage that will be applied to the corresponding BR is currently 50%.
  • In the event of work-related injuries or occupational diseases, the benefit will increase, in accordance with the seriousness of the violation, by 30% to 50% when the injury is caused by machines or devices or at facilities, centres or workplaces where the regulation safety equipment is not available, not used or in poor condition, or when basic hygiene standards and occupational health and safety measures have not been observed, or have not been adapted to each person and job, taking into account each worker's characteristics, age, gender and other conditions. This surcharge will be paid in full by the offending employer.

    The payment of economic benefits is not applicable for domestic employees in cases of WI and OD due to the lack of measures for occupational risk prevention.

Eligibility for the maternity supplement:

Women who have had two or more biological or adopted children will be eligible for a maternity supplement consisting of a percentage, applicable to the value of the pension that they earn from 1 January 2016 onwards, calculated as described in the previous sections. This percentage will be 5% if the woman has two children, 10% if she has three and 15% if she has four or more.

These percentages are calculated for determining the entitlement and children will be counted regardless of whether they were born in Spain or abroad.

Regulating base

The calculation of the base pension (BR) will change depending on the cause of the permanent disability:

If the disability is the result of common contingencies:

  • Workers aged over 52 and under 65 on the date of the causal event:
    1. The result obtained from dividing the interested party's contribution bases during the 96 months immediately before the month prior to the causal event by 112. These bases will be calculated according to the following rules:
      • The bases for the 24 months prior to the causal event are calculated at their nominal value.
      • The remaining bases are updated in accordance with the evolution of the CPI, from the month to which they correspond ending the month immediately prior to the month when the period of non-updatable bases described in the foregoing paragraph begins.
    2. To this result, the corresponding percentage is applied, depending on the years of contributions, in accordance with the scale provided for retirement pensions, with the years that remain for the worker,  on the date of the causal event, to reach the standard retirement age applicable at all times being considered to this end. If the contributory period is less than 15 years, 50% will be applied.
    3. The resulting amount of the foregoing rules will give the BR to which, in order to obtain the amount of the corresponding pension, the percentage provided for the recognised degree of disability must be applied.

  • Workers aged under 52 on the date of the causal event (for which a contribution period of less than 8 years is required):

    The BR will be calculated in the same way as above, however the ratio will be obtained by dividing the sum of the monthly contribution bases by a number equal to the number of months of the minimum contribution period required, not counting partial months, by the number of months to which said bases correspond, multiplying this ratio by the coefficient of 1.1666, and excluding, in all instances, the updated bases corresponding to the 24 months immediately prior to the month before the causal event.
  • Workers aged 65 or over on the date of the causal event who do not meet the requirements for retirement:

    The BR will be the  ratio obtained from dividing the interested party's contribution bases during the  96 months immediately before the month prior to the  causal event by 12, according to the provisions of rule a).
  • Part-time workers:

    When the permanent disability is a result of a common illness the same rules applied to retirement pensions will be employed.
     
  • Gap integration:

    Effective 1/1/2013, if during the period to be counted for calculating the BR there are months in which the worker was not obliged to make contributions, the first 48 monthly payments will be formed using the minimum base in force at any time with other monthly payments totalling 50% of said minimum base.

    If, during any month to be counted to establish the base pension, the obligation to make contributions was limited to just a portion of the month, the procedure outlined in the above paragraph will only apply to the portion of the month in which the worker was not obliged to make contributions, provided that the base pension that corresponds to the contributory period does not reach amount of the established minimum base. In this case, the integration will be increased up to this latter amount.

    For workers included in the Special System for Domestic Workers, between 2012 and 2018, only effective contribution periods will be taken into account when calculating of the BR of the permanent disability pension arising from common contingencies (gap integration will not apply).

    For workers included in the Special System for Agricultural employees, effective 1/1/2012, only effective contribution periods will be taken into account for the calculation of the BR (gap integration will not apply).

    As regards part-time, relief and intermittent-permanent employees the following must be considered:
    • The integration of periods, during which the worker was not obliged to make contributions, will be done using the minimum applicable contribution base at any given time, for the number of contracted hours on the date on which the obligation to make contributions was suspended or came to an end. If the worker was only obliged to make contributions for a portion of the month, the integration will only apply to the period of the month in which he/she was not obliged to make contributions, provided that the corresponding contribution base does not reach the aforementioned minimum base.
    • With the exception of the periods between seasons or campaigns for workers with fixed-term intermittent contracts, under no circumstances will the gaps in contributions be considered as the hours or days not worked because of the interruptions in rendering services resulting from the part-time contract itself.

If the disability is a result of a non-work-related injury:

The BR will be the ratio obtained from dividing the sum of the interested party's contribution bases during an uninterrupted period of 24 months by 28. Said period must be chosen by the beneficiary from within the 7 years immediately prior to the date of the causal event of the allowance.

If, on the date of the causal event, the interested party had not completed an uninterrupted period of  24 months of contributions, the BR will be determined using the most beneficial formula of the following two bases: the basis provided for in the previous paragraph or by dividing the sum of the minimum contribution basis in force in the 24 months immediately before the causal event of the disability by 28, including these in the amount corresponding to the last contracted working day completed by the originator.


If the disability is a result of a work-related injury or occupational disease:

The BR is calculated based on the actual salaries, taking into account the fact that they may not exceed the maximum contribution limit or be less than the minimum limit in force at the time of the disability. It comprises the ratio obtained by dividing the following totals by 12:

  • Daily wage and time of service of the worker on the date of the injury or sick leave for 365 days.

    For part-time and relief contracts, in which the worker does not provide services every day or when the working day is irregular or variable, the daily wage is the result of dividing the agreed weekly or monthly salary, based on the distribution of the working hours indicated in the contract for each of those periods, by 7 or 30.

    For fixed-term permanent contracts, the daily wage will be the result of dividing the wages earned by the worker during the same period by the number of calendar days of the campaign up to the date of the causal event.
  • Extra payments, benefits or shareholdings, by their total amount in the year prior to the injury.
  • The ratio that results from dividing bonuses, supplementary compensation and overtime hours earned in the year prior to the injury, by the number of actual days worked in that period. The result is multiplied by 273, except when the number of actual days worked in the activity in question is less, in which case the corresponding multiplier is applied.

    The amount resulting from using the overtime calculation must not exceed the amount resulting from multiplying the average compensation of each overtime hour by the annual maximum limit of overtime hours, as set out in Art. 35.2 of the Workers' Statute.

    For part-time, relief and fixed-term permanent contracts, the sum of the salary supplements received by the beneficiary during the year prior to the causal event is divided by the number of hours actually worked during that period. The result is then multiplied by the figure obtained by applying the proportionality coefficient that exists between the standard working day of the activity in question and the working day indicated in the contract to the number 1826.

For workers included in the Special System for Domestic Employees, the BR will be equal to the contribution basis of the domestic worker on the date of the allowance's causal event.

Pluri-activity:

When contributions are certified in several schemes and the worker is not eligible for an allowance as a result of one of them, in cases of pluri-activity the certified contribution bases from the previous scheme may be added to those of the scheme under which the worker is eligible for an allowance, solely to determine the BR; this provision remains in effect provided that the sum of the bases does not exceed the maximum contribution limit in force at any given time.

Lump sum compensation

Requirements:

  • That the worker is under 60 years of age.
  • It is assumed that the disability injuries are liable to change, giving rise to a future review of the declared disability.
  • That the beneficiary carries out self-employed or employed work for another person, or accredits that the compensation amount will be invested in preparing or developing new sources of income as a self-employed worker, as long as the worker is accredited with sufficient capability to carry out the activity in question.
  • That it is applied for within the 3 years following the date of the decision or definitive assessment which recognises the right to the pension or, if under 21 years of age on that date, within the 3 years following the day on which that age is reached.

Amount:

  • The amount reaches a maximum of 84 monthly payments of the pension under 54 years of age and a minimum of 12 monthly payments at 59 years of age, according to the following scale:

Age reached - Years |No of monthly pension payments
Under 54 years old 84
54 72
55 60
56 48
57 36
58 24
59 12


  • The decision must be given by the General Management of the National Social Security Office.
  • Compensation will be made following the aforementioned decision.
  • Once the substitution has been authorised, the beneficiary may not request its suspension in order to recover the status of pensioner until the age of 60.
  • On reaching 60 years of age, the beneficiary will start to receive the pension recognised initially, increased by the corresponding revaluations which have taken place since the date on which the substitution of the compensation was authorised.
  • If the beneficiary dies before 60 years of age, there will be a right to death and survival benefits as if he had been a pensioner at that time.

Payment

  • Pensions arising from common diseases and non work-related injuries are paid in 14 instalments, one for each month of the year and two extra payments per year, which are paid together with the June and November monthly instalments, and are the same amount as the ordinary amounts for these months.
  • Pensions arising from work-related injuries and occupational diseases are paid in 12 monthly instalments, as the extra payments are prorated among the ordinary monthly instalments, having been taken into account to calculate the regulatory base of the pension.
  • In the case of compensation, the appropriate payment is made in a single amount.
  • Minimum monthly amounts are guaranteed according to age, with the amount changing depending on the type of cohabitation and financial dependency.
  • The total permanent disability benefit and the retirement benefit arising from this, due to a change in name when the interested party turns 65 years old, is subject to taxation in accordance with the terms set out in the Personal Income Tax (IRPF) regulations, and subject, where appropriate, to the general tax withholdings system, with the following exceptions:
    • Benefits derived from acts of terrorism are always exempt.
    • Total permanent disability (55%) pensions and the retirement pensions derived from them, due to change in denomination are not generally exempt, with the exception of Vizcaya, Álava and Guipúzcoa, if no income is certified.
    • Qualified total permanent disability (75%) pensions and the retirement pensions derived from them due to change in denomination, are exempt in Vizcaya, Álava and Guipúzcoa, unless the beneficiaries have certified their income.
Complementary Content
${loading}