General information
Main benefits
Unemployment benefits
Maternity leave
Retirement benefits
General information
The Spanish social security system covers all Spanish nationals who reside and perform their labour activities in Spain, as well as foreigners with residence permits in Spain. Spanish nationals, who do not reside in Spain, are also covered under certain circumstances. Protection also covers the family of the insured person.
The Spanish social security system has two applicable schemes:
- General scheme, or scheme for the dependent worker: This scheme imposes a set percentage of income as a contribution to be paid jointly by the employer and the employee.
- Scheme for the self-employed: The employee, who works on his own account, is responsible for the total amount of the contribution. He can choose between a maximum and a minimum percentage of contribution. The scheme provides no unemployment benefits.
Employer and employee contributions constitute the main social security financing. However, the employer pays the greater share, and he or she will usually complete all formalities to ensure that workers are covered by the social security system.
Personnel are classified into labour categories for the purpose of determining their social security contributions, and the government annually establishes the maximum and minimum contribution rate. The minimum salary on which social security contributions must be paid is around EUR 421 a month.
The contributions that dependent workers and employers pay jointly are higher than self-employed contributions, as employees are entitled to unemployment benefits if they lose their jobs. The mandatory unemployment contribution is paid as a percentage of the salary.
Pursuant to social security agreements between Spain and some other countries, including all the European Union countries and the United States, expats may remain members of the social security system of their country of origin for a limited period.
Spanish Social Security contributions start as soon you start working in Spain, not when you obtain your residence permit.
Main benefits
The Spanish Social Security System includes benefits for health care (sickness and maternity), injuries at work, unemployment, pensions, invalidity and death benefits.
Unemployment benefit
Unemployed workers in Spain have the right to receive benefit if they have contributed to the social security system over a minimum period of 360 days within the last six years before they are made unemployed.
The amount of benefit received depends on the contributions made within the last 180 days. There exists a minimum and maximum amount of benefit you may receive.
You retain the right to unemployment benefits for a maximum period of two years, provided that you have worked during six years before becoming unemployed.
You must register as unemployed with the Spanish Institute of Employment (INEM) and apply for unemployment benefit within 15 days of becoming unemployed.
You must be legally unemployed to receive the benefit, and you have no right to this benefit when it has been you own decision to terminate your work contract.
As a general rule, employers or self-employed persons are not entitled to unemployment benefit. However, it is possible to do some spare-time work and still get benefit.
Foreigners entitled to unemployment benefit in Spain will lose this benefit if they go back to residing in their country of origin.
Maternity leave
A mother has the right to suspend her work contract during 16 weeks to take care of her newborn child. In case of a multiple birth, this period is extended by two weeks for every newborn child. Her post must be kept open until she comes back to work, and during this period she is entitled to receive her usual salary.
The employee must have been registered with the social security system and contributed during 180 days within five years before the child was born.
Retirement benefits
In general terms, Spanish workers may retire at the age of 65. They must have previously contributed to the social security system for 15 years.
The amount of pension that the worker shall receive will depend upon the number of years that he has contributed and his taxable income. He could receive 100 percent of his taxable income with a total contribution period of not less than 35 years.
The worker's final pension is based principally on his payments during the eight-year period prior his retirement.
These are only general guidelines and not definitive statements of the law. All questions about the law's applications to individual cases shall be directed to a Spanish lawyer.
Updated 2011 / Expatica
Article by iAbogado Servicios Jurídicos SLU (Madrid, Spain).
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As an expat, you are likely to be included in the Spanish social security system, potentially making you eligible to receive unemployment, maternity and retirement benefits. Here's a guide.
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