The Social Security System in Spain: A Comprehensive Guide
The Social Security System
The Social Security System is the set of administrative bodies and government agencies with regulatory powers designed to ensure all welfare, health, and economic benefits.
The Social Security system is an essential element of society as a system of public protection.
1 Definition and Purpose
Concept:
Social Security is a system where the State guarantees the protection of people from contingencies and situations that need to be addressed by law.
Purpose:
The protection of individuals against necessary and certain contingencies. There are two types: contributory and non-contributory, based on universality, unity, solidarity, and equality.
2 Scope
Contributory benefits:
These benefits require prior contributions. For the purposes of contributory benefits, this will include all Spanish citizens, foreigners residing in Spain, or:
- Employed persons or similar to them (they do not consider the spouse, descendants, parents, and other relatives to the second degree, as they live together at home and are dependent).
- Self-employed or freelance, working members of worker cooperatives, students, and staff.
Non-contributory benefits:
This protects those who have never contributed to the Social Security system or have insufficient contributions. This includes all Spanish residents.
3 Basic Standards
- RD Social Security General Law 1 / 1994 of 20 June.
- Law on State Budget (to be produced annually).
- Listing standards of Social Security (drafted annually).
4 Protective Action
Package of benefits and measures to prevent, remedy, or overcome the states of need arising from contingencies, such as:
Loss of Health:
Gives the right to health care, recovery, and economic benefit. (Work accident, occupational disease, accident outside the workplace, common disease).
Old Age:
The retirement benefit under their contribution covers loss of income.
Unemployment:
Unemployment benefit in the case of contributory and unemployment benefits with respect to non-contributory or assistance.
Certain family situations:
Risk during pregnancy, maternity, adoption, and having children.
Situations of lack of resources:
Widows, orphans, pension for family or a death.
The Social Security Schemes
1 The General Scheme
Included are those over 16 years old, artists, and professional football players. Are excluded: for work (people who perform work of friendship, develop a kind of work in a special scheme and work to be marginal), by reason of kinship (not considered employees unless the contrary the spouse, children, parents and other relatives to grade 2).
2 Special Regimes
Self-employed, especially agrarian, maritime workers, employees of Home and Coal Mining.
Structure of the Administrative Social Security System
It is the combination of parts that ensure citizens welfare benefits, health, economic, or otherwise established. The management is performed by: National Institute of Social Security (INSS), the General Treasury of Social Security (TGSS) and the Instituto Social de la Marina (ISM).
1 The General Treasury of Social Security
It is a joint service where they unite all the economic and financial management. Its skills are:
- Business registration, affiliation, additions, deletions, and changes in workers’ data.
- Management and control of the listing and collection of assessments.
- Management and wealth management only for Social Security.
- Financial management and payment management.
2 The National Institute of Social Security
Its skills are: the right to control the economic benefits of the Social Security system in their contribution and family benefits, and recognition of the right to health care.
Employers’ Obligations to Social Security
1 Company Registration
Who should do it?
The first entrepreneur who is hiring workers.
When should you perform?
Before the start of activity.
How many times should you do it?
Once, and it is valid in all regimes and for life.
Where is it done?
The provincial office of the Treasury.
What is it?
The employer is assigned a number for identification. The employer must request a code contribution account in each of the provinces where the work is done and must notify the Treasury of the Social Security opening workplaces.
With regard to the application:
The employer must record the entity/manager or partner that is going to take on cases of industrial accidents and occupational diseases.
What if the employer decides to terminate their business?
They should communicate the termination of the company and/or temporary or permanent cessation of its activity.
2 Membership of the Workers
Who should do it?
An employer who is enrolled is required to apply for membership of the workers, but it can also be carried out by: the employer, workers, or self-employed person.
What is it?
It is the inclusion of workers in the Social Security system. It is mandatory for people, only for all regimes and for life.
Where is it done?
Provincial office of the General Treasury of Social Security or administration of the same province where the company is domiciled or in which lies the establishment of self-employed.
When is it done?
Prior to the commencement of the provision of services or the activity of self-employed.
What is it?
It is an administrative act through which a Social Security number is assigned to every citizen.
3 High, Low, and Variation Data
The employer must notify Social Security when workers enter or leave the company. In case of default, the worker may request or report.
High (When you start work)
What is it? It is a formal act of allegiance to a particular scheme within the Social Security system. When should you apply? It should be drawn prior to the initiation of the worker’s services, but you can also apply for affiliation on the first business day.
What is low?
The decline in worker take effect after the cessation of the provision of services. When should you apply? It should be submitted within 6 days. If the withdrawal is requested after the deadline, the obligation to contribute will continue until the day that the Treasury knows the cessation of work.
What is variation?
Communications are carried out identifying data modification, home, or employment of workers. When should you apply? It should be submitted within 6 days.
mitted within 6 days.