Spanish Social Security System: Benefits and Requirements

Posted on Dec 1, 2024 in Law & Jurisprudence

1.1. Definition of the Public Social Security System

The public social security system aims to protect individuals and their families against risks and contingencies leading to need.

Membership is compulsory for those residing and working in the country.

1.2. Benefit Modalities

  • Contributory Budget: Features health and social services aid.
  • Economic Benefits:
    • Contributory: Granted to eligible workers and their relatives. Funded through worker and employer contributions.
    • Non-contributory (welfare): Granted to individuals who haven’t contributed or don’t meet the grace period. Funded through the State Budget.

1.3. Social Security Schemes

  • General Scheme: Employed workers and those in assimilated situations.
  • Special Schemes:
    • Self-Employed (18+ years):
      • Self-employed individuals.
      • Spouses or relatives up to the second degree of kinship.
      • Partners in commanditary and collective societies.
      • Associated workers in cooperatives.
      • Others: Agricultural workers, maritime workers, household employees, etc.

2. Obligations in the RETA (Special Scheme for Self-Employed)

  • Company Registration: Self-employed workers contracting services must register as employers.
  • Affiliation: Affiliation is required if not previously registered. The deadline is 30 days from the start of activity.
  • High Registration: Notify the RETA within 30 days of starting activity.
  • Quote: Self-employed individuals choose contribution bases between minimum and maximum.

2.1. Temporary Disability

  • Concept: Inability to work, not permanent, due to health reasons.
  • Requirements:
    • High Affiliation
    • For common illnesses, a 180-day grace period within 5 years prior to illness is required.
    • Accident-related cases.
  • Benefit: Benefit to address economic needs.
  • Regulatory Basis: Risk depends on the daily BR or cause of contingency.
  • Duration: Up to 12 months, extendable up to 6 additional months if medically necessary.

2.2. Maternity, Paternity, and Pregnancy Risk

  • Concept: Maternity and Paternity: Loss of income due to contract suspension for maternity/paternity leave, adoption, or foster care.

Pregnancy Risk: Loss of income due to contract suspension because of pregnancy-related work risks, when a work change isn’t possible.

  • Maternity Requirements:
    • High Affiliation
    • Grace period required for those under 21.
    • For those aged 21-26: 90 days within 7 years before leave or 181 days during working life.
    • For those 26+: 181 days within 7 years before leave or 360 days during working life.

Paternity:

  • High Affiliation
  • 180-day grace period within 7 years before leave.

Pregnancy Risk:

  • High Affiliation
  • Benefit: Economic subsidy.

2.4. Permanent Disability

Definition: A situation where a worker suffers serious, presumably permanent, anatomical or functional limitations, reducing or eliminating their work capacity.

    • Grades:
      • Partial IP: At least 33% disability.
      • Total IP: Inability to perform basic tasks of their profession.
      • Absolute IP: Inability to perform any profession.
      • Serious Disability: Requires assistance from a third person for essential life acts.
      • Requirements:
        • Under 65 and High Affiliation
      • Benefit: Lifetime pension or lump-sum compensation in case of IPP.
      • Regulatory Basis: Depends on the risk involved.

2.5. Retirement

Concept: This contingency can lead to a non-contributory or contributory pension.

  • Contributory Mode: Due to age or voluntary resignation.
  • Requirements: Age 65 and fulfillment of a grace period.
    • Grace period: 15 years of contributions, with at least 2 within 15 years prior to retirement.
  • Provision: Lifetime pension.
  • Regulatory Basis: BCC BR = 180 months preceding retirement divided by 210.

2.6. Death and Survivor Benefits

  • Concept: Economic support for dependents after the death of a worker or pensioner.
  • Requirements:
    • Worker or Pensioner:
      • High status or assimilated (15-year grace period). Pensioners not requesting discharge.
      • If death is due to occupational illness, a 500-day grace period within the previous 5 years is required.
  • Beneficiaries:
  • Widow(er): Entitled to a widow’s pension until remarriage.
  • Orphans: Under 18, infirm, or under 21 (or 24 if no parents survive), with income below 75% of the SMI annually.
  • Other relatives: Second-degree relatives by consanguinity must prove economic dependence.
    • Benefit: Lump-sum death benefit, widow’s pension annuity.
    • Regulatory Basis: Same for all services except death benefit, which is a fixed amount updated with the CPI.

2.7. Unemployment (Contributory Mode)

  • Definition: Involuntary unemployment with job loss or reduced working hours (at least one-third).
  • Requirements:
    • Membership and registration or assimilated discharge situation.
    • Not having reached retirement age.
    • Legal unemployment (SLD).
    • Grace period: 360 days in the last 6 years.
  • Provision: Unemployment benefit and contribution to social security payments.
  • Duration: Varies depending on the days listed.
  • Benefit Limits: Based on the IPREM (Public Multiple Effect Income Indicator).
  • Application: Must be requested within 15 days of the SLD date.

2.8. Unemployment Subsidy (Non-Contributory Category)

  • Concept: For unemployed individuals meeting specific requirements after exhausting contributory benefits or in situations of social disadvantage.
  • Requirements:
    • General: Registered as a job seeker for one month after contributory benefits are exhausted, without job offers or training, and monthly income below 75% of the SMI.
    • Specific:
      • Exhausted contributory benefits.
      • Employees: 45 years old.
      • Workers not entitled to contributory benefits.
      • Benefit: Unemployment benefit.
      • Duration: 3 to 30 months, generally extended to 6-18 months.