General Treasury of Social Security: A Comprehensive Guide
General Treasury of Social Security
Introduction
The General Treasury of Social Security is an agency of the Social Security Administration responsible for managing economic resources and the financial management system. It operates under the principles of financial solidarity and is organically unique. It reports to the Secretariat of State for Social Security, under the Ministry of Labor and Immigration.
Functions of the General Treasury
The General Treasury’s functions include:
- Administrative controls
- Business registration and membership
- Management of worker contributions
- Management of funds, including deferrals and fractionations
- Recovery of financial resources, including those related to Unemployment, the Wage Guarantee Fund, and Vocational Training.
Persons Included and Excluded from the System
Included
Employees of corporations, including members of their administration, counselors, and managers who do not hold ownership positions.
Excluded
Individuals providing occasional friendly services and volunteers.
Business Registration (TA-1)
This administrative act allows the General Treasury of Social Security to register an employer in the Social Security System. This registration is valid for the duration of the employer’s existence. The General Treasury assigns a Contribution Account Code for numerical identification.
The employer must indicate whether they opt for a Mutual INSS or to cover work accidents and occupational diseases.
When and Where to Register
The request must be made before the initiation of activities at the Social Security Administration, based on the employer’s residence.
Variations in Data and Cessation of Activity
Any changes in the registered data or cessation of activity must be reported within 6 calendar days of the event.
Affiliation, Registration, and Deregistration (TA-2)
Affiliation
This administrative act incorporates a protected individual into the Social Security System, granting them rights and obligations. This results in the assignment of a lifelong and unique membership number.
Registration
This occurs when an employee starts or resumes work in an occupation requiring inclusion in the General Social Security Scheme.
Deregistration
This occurs when an employee ceases their work activity.
Responsibility for Procedures
Applications for membership, registration, and deregistration must be conducted by the employer. If the employer fails to do so, workers can perform these actions themselves. The General Treasury of Social Security may also perform these actions automatically.
When and Where to Apply
Applications should be made to the Provincial Directorate of the General Treasury of Social Security or its corresponding government office, based on the worker’s residence, before the commencement of services.
Contribution
Contribution refers to the economic resources obligated to be provided to the Social Security System. Its basic elements are the contribution base, the contribution rate, and the quota.
Who Should Contribute?
Employers and employees within the scope of the General Scheme are required to contribute. The fees for Accidents and Occupational Diseases are the sole responsibility of the employer and the Wage Guarantee Fund.
Responsibility for Payment
The General Law of Social Security holds the employer responsible for their own contributions and those of their workers. The employer will withhold the amount of the workers’ share at the time of paying salaries. If this is not done, the employer is obligated to pay all contributions.
Contribution Liability
When Liability Arises
The obligation to contribute begins from the start of employment, including the probationary period, and continues as long as the employee is registered. This obligation remains in cases of:
- Temporary Disability
- Risk during pregnancy
- Risk during breastfeeding
- Periods of maternity leave, paternity, adoption, and pre-adoptive or permanent foster care
- Compliance with public duties or trade union official duties, provided there is no leave from work
- Special agreement
- Transfer of the employee by the company outside the country
- Holidays not taken and paid at the end of the contract
- Other situations where the obligation to contribute is maintained
When the Obligation to Contribute Ends
The obligation ends upon completion of the work performance in the company, provided that the deregistration is communicated within the stipulated timeframe (6 calendar days of termination). If the deregistration occurs after the deadline, the obligation to contribute continues until the Treasury is informed of the cessation of employment.
The obligation to contribute is suspended during periods of strike or lockout.
Contribution Base
The contribution base for all contingencies and situations covered by the General Social Security Scheme is determined by the total compensation.
Calculation for Common Contingencies
All appropriate remuneration is included, excluding explicitly excluded concepts. This includes the share of extra payments.
- For employees with daily wages: Divide the annual amount by 365 and multiply the result by the number of days corresponding to the payment.
- For employees with monthly wages: Divide the annual amount by 12.
The base will be adjusted to the minimum or maximum, depending on whether the result is lower or higher than these limits, except for fixed-term contracts.
Contribution Base for Work Accidents and Occupational Diseases (AT and EP)
There are no minimum contribution bases, but there are maximum limits. The ceiling is determined by the specific group.