REPORT ON SPAIN’S COMPLIANCE WITH THE PROVISIONS OF THE COUNCIL OF EUROPE’S EUROPEAN CODE OF SOCIAL SECURITY

1 JULY 2016 AND 30 JUNE 2017

The Council of Europe, pursuant to the provisions of Article 74 of the European Code of Social Security, has requested the presentation of the report corresponding to the period ranging from 31 July 2016 and 30 June 2017, regarding Spain’s compliance with the content of said international instrument.

To this end, the regulatory amendments introduced into Spanish legislation during the stated period, to comply with the content of said European Code of Social Security, can be found below.

An Appendix is attached, containing the economic and statistical data.

 I.   GENERAL PROVISIONS

A.  Administration/Organization

-    Royal Decree 415/2016, of 3 November, restructuring the Ministries (Official Spanish Gazette [BOE] 4 November 2016).

This Royal Decree reformed the ministerial structure that had been in force until then, but this change did not affect the Ministry of Employment and Social Security.

The Ministry of Employment and Social Security is responsible for proposing and implementing the Spanish Government’s policy on employment and Social Security, as well as for developing the Government’s policy on aliens, immigration and emigration.

This Ministry is structured into the following senior government bodies:

a) The State Secretariat for Employment.

b) The State Secretariat for Social Security.

-    Royal Decree 424/2016, of 11 November, establishing the basic organizational structure of the Ministries (BOE 12 November 2016).

-    Order ESS/1452/2016, of 10 June, regulating the standard procedures of the Labour and Social Security Inspectorate (BOE 12 November 2016).

-    Order PRE/1590/2016, of 3 October, publishing the Decision of the Council of Ministers of 30 September 2016, which issued instructions to enable public participation in the process of drafting legal provisions through the Ministries’ websites (BOE 5 October 2016).

This Order sought to harmonize the image and the structure of the access points facilitating public participation in the different Ministries’ websites, so that their visibility and easy access is guaranteed. For the same reason, the General Electronic Access Point of the General State Administration shall include a link to each of the Ministries’ access points.

-    Royal Decree 396/2017, of 21 April, amending Royal Decree 706/1997, of 16 May, implementing the internal control scheme applied by the Office of the Comptroller General for Social Security (BOE 22 April 2017).

B. Benefits

-    Royal Decree 746/2016, of 30 December, on uprating of and supplements for civil service pensions, and on uprating of Social Security system pensions and of other public social benefits for 2017 (BOE 31 December 2016). Corrigenda (BOE 16 February 2017 and BOE 8 March 2016).

In 2017, contributory pensions paid by the Social Security system shall be increased by 0.25%, pursuant to Articles 36 and 40.1 of Act 48/2015, of 29 October, on the 2016 General State Budget.

The same percentage increase shall be applied to the limits for public pensions.

Moreover, the amounts of the minimum Social Security system pensions, of non-contributory pensions, and of Social Security system family benefits per dependent child aged 18 or older and with a disability rating of at least 65%, shall also be increased by 0.25%.

Likewise, an 0.25% increase shall also be applied to the amounts of the non-concurrent pensions from the former Obligatory Old Age and Disability Pension, and those concurrent with widowhood pensions from any Social Security system scheme, or those concurrent with one of the latter and, in addition, with any other public widowhood pension, without prejudice to the application, to the sum of all their amounts, of the limit established in Transitional Provision Two of the consolidated text of the General Social Security Act, unless higher amounts have been recognized for the interested parties before 1 September 2005, in which case the general rules on uprating shall be applied, provided that, as a result of these rules, the sum of the amounts of the concurrent pensions is still higher than said limit.

This Royal Decree also includes a Schedule with an updated table of the amounts of the public pensions and benefits applicable in 2017.

MINIMUM AMOUNTS OF CONTRIBUTORY PENSIONS FOR 2017

TYPE OF PENSION

BENEFICIARIES

With a dependent spouse
euros/year

Without a spouse:
Single-person household euros/year

With a non-dependent spouse
euros/year

Retirement

Beneficiary aged 65 or more…………l

11,016.60

8,927.80

8,471.40

Beneficiary under 65………………….

10,326.40

8,351.00

7,893.20

Beneficiary aged 65 or more formerly receiving Major Invalidity pension……

16,525.60

13,392.40

12,707.80

Permanent incapacity

Major Invalidity …………………………

16,525.60

13,392.40

12,707.80

Absolute incapacity …………………….

11,016.60

8,927.80

8,471.40

Total: Beneficiary aged 65 or more …

11,016.60

8,927.80

8,471.40

Total: Beneficiary aged 60 to 64……..

10,326.40

8,351.00

7,893.20

Total: Beneficiary under 60 with incapacity resulting from non-occupational illness ……………………

5,552.40

5,552.40

5,448.94

Partial under the work-related accident scheme: Beneficiary aged 65 or more..

11,016.60

8,927.80

8,471.40

Widowhood pensions

Beneficiary with dependent family members……………………………….

10,326.80

Beneficiary aged 65 or more or with a disability rating of at least 65%………..

8,927.80

Beneficiary aged 60 to 64……………..

8,351.00

Beneficiary under 60............................

6,760.60

Orphans’ pensions:

Per beneficiary………………………………………………………

2,727.20

In the case of the death of both parents, the minimum shall be increased by 6,742.40 euros per year, distributed, as appropriate, among the beneficiaries …………………………………………..

6,760.60

Per disabled beneficiary aged under 18, with a disability rating of at least 65% ……………………………………………………

5,367.60

Pensions for family members:

Per beneficiary……………………………………………………

2,727.20

If there is no widow/er or orphan entitled to a pension:

A single beneficiary aged 65 or more……………………………

6,592.60

A single beneficiary aged under 65……………………………..

6,211.80

Several beneficiaries: The minimum assigned to each beneficiary shall be increased by the pro rata of 4,011.00 euros per year among the number of beneficiaries………………………………………………….

4,033.40

II.       MEDICAL CARE

-Changes made:

1) Description and updating of the portfolio of services

Work has been done to update the National Health System’s common portfolio of services, on the basis of criteria of effectiveness and efficiency and through the evaluation of techniques, technologies and procedures carried out by the National Health System’s network of Agencies for the Evaluation of Healthcare Technologies and Services, and the criteria of experts in the corresponding areas:

Basic common portfolio of care services:

-  Work has been done in the field of cervical screening in order to assess moving from opportunistic screening to population-based screening, and decisions have been made concerning the target age, the type of screening test, and the spacing between tests. All this shall be incorporated into legislation updating Royal Decree 1030/2006, of 15 September, establishing the National Health System’s common portfolio of services and the procedure for updates thereof.

-  Order SSI/1356/2015, of 2 July, amending Annexes II, III and VI of Royal Decree 1030/2006, of 15 September, establishing the National Health System’s common portfolio of services and the procedure for updates thereof, and regulating studies on the monitoring of techniques, technologies and procedures, led to work being done to launch monitoring studies for four types of implants: biodegradable oesophageal stents, mitral valve clip repair, endobronchial valves for persistent air leak, and devices for left atrial appendage closure. These studies will make information available on the basis of protocols agreed upon with experts, which will facilitate decision-making regarding the conditions for these four implants to remain in the portfolio, in order to guarantee quality care for patients who need them.

2) European Reference Networks

The National Health System’s Interterritorial Council reached an agreement in March 2016 to facilitate access by Spanish health providers to calls made by European Reference Networks (ERNs), and 42 of these health providers were authorized access. After the conclusion of said networks’ calls, Spain is participating in 17 of the ERNs currently approved. Spain is the coordinating country of the TransplantChild network.

- Changes decided, planned or proposed during the period of reference:

1) Description and updating of the portfolio of services

Basic common portfolio of care services

- Assessment is being made of the possible inclusion in the common portfolio of services of optical readers for patients with serious neuro-motor disorders, with severe upper limb impairment and who are unable to communicate orally or in writing, so that they may offset their communication deficiencies and isolation. To this end, the relevant protocol is going to be drafted to provide access to this new technology for patients who meet certain criteria.

 - Assessment is being made of areola micropigmentation, so that its inclusion in the National Health System’s common portfolio of services may be carried out guaranteeing conditions of safety for its application.

- Work is being done on assessing a continuous glucose monitoring system for certain diabetic patients who require multiple doses of insulin, in order to determine its inclusion in the National Health System’s common portfolio of services on the basis of criteria of effectiveness and cost-effectiveness.

- Work is being done on incorporating cervical screening based on the existence of prior HPV infection.

Supplementary common portfolio in the areas of:

-  Orthopaedic Prosthetics: A common catalogue of supplementary orthopaedic prosthetic benefits is being drafted, specifically the section on external prostheses, including new types of products and extending benefits in certain cases, such as a higher age limit for financing hearing aids. This section supplements the common catalogue of orthopaedic prosthetic benefits regarding wheelchairs, orthoses and special orthopaedic prostheses included in the draft Order—pending processing—amending Annex VI of Royal Decree 1030/2006, of 15 September, establishing the National Health System’s common portfolio of services and the procedure for its updating, regulating the procedure for supply of orthopaedic prosthetics, and determining correction coefficients. This Order establishes the National Health System’s Supply of orthopaedic prosthetics, which will enable companies to offer their products to the National Health System online, and establishes maximum amounts for financing, which will enable to provide more appropriate and standardized benefits throughout the National Health System. The software for this Supply system (OFEPO) is being developed, and the maximum amounts for financing are being checked against the National Health System hospitals’ purchase amounts, at the proposal of the National Markets and Competition Commission.

-  Dietary products: New types of food for special medical purposes have been assessed, and are going to be included in the common portfolio of dietary product benefits, through the updating of Royal Decree 1030/2006, of 15 September.

2) Health Cohesion Fund

Work is being done on the Order updating Annexes I, II and III, which regulate nationwide compensation costs for hospitalization processes, outpatient procedures, and National Health System centres, services and units of reference (CSUR), taking into account the incorporation of new CSURs into the National Health System, as well as the migration of the system of illnesses.

3) National Health System Centres, Services and Units of reference (CSURs) and European Reference Networks (ERNs)

In accordance with the European Commission’s provisions on cross-border healthcare, work is being done to integrate the CSUR project with that of the ERNs.

As regards CSURs, work is being done to continue detecting areas of pathology that require CSURs for their care. During the period of reference, work has been done in the areas of dermatology, endocrinology and haematology.

4) Assisted Human Reproduction (AHR)

Work is being done on the implementation of an information system (SIRHA) in order to guarantee the safety and quality of donations and their compliance with European and domestic rules.

III.   SICKNESS BENEFITS

No legal or regulatory change has occurred in this regard.

IV.        UNEMPLOYMENT BENEFITS

No significant amendments have been made to Social Security legislation relating to unemployment benefits, other than the adjustments to the increase of the minimum wage and the provisions of the 2017 General State Budget Act, which are foreseen to affect both the Public Multi-use Income Indicator (IPREM) and the maximum limits on contributions.

Royal Decree 742/2016, of 30 December, raised the minimum wage for 2017: http://boe.es/diario_boe/txt.php?id=BOE-A-2016-12598, which meant an 8% increase with regard to 2016.

Pursuant to this Royal Decree, the minimum wage was set at 23.59 euros/day or 707.70 euros/month, to come into effect on 1 January 2017.

This does not affect the amount of unemployment benefits, which are linked to the IPREM, but it does affect the threshold of individual income under which it is possible to access assistance benefits. 75% of the minimum wage is established as 530.78 euros.

The General State Budget for 2017, still pending approval, foresees a 1% increase of the IPREM, which will affect the amounts of contributory benefits and of assistance benefits and other insertion programmes.

In the case of contributory benefits, the maximum and minimum amounts to be received by beneficiaries are increased. The new maximum and minimum amounts for contributory benefits are listed in the following table:

MAXIMUM AND MINIMUM AMOUNTS OF CONTRIBUTORY BENEFITS

Family responsibilities

MINIMUM

MAXIMUM

No children

80% IPREM + 1/6

175% IPREM + 1/6

501.98 euros

671.40 euros

1 child

107% IPREM + 1/6

200% IPREM + 1/6

1,254.95 euros

2 or more children

1,098.08 euros

225% IPREM + 1/6

1,411.82 euros

In the case of assistance benefits— unemployment subsidy, Active Insertion Support (RAI), Activation for Employment Programme (PAE), agricultural subsidy and agricultural support—the variation of the IPREM affects the amount received—80% thereof—upon its entry into force. The IPREM rose from 532.51 euros to 537.84 euros and, therefore, the amount of these benefits rose from 426.00 euros/month to 430.27 euros/month.

Through Royal Decree-Law 7/2017, of 28 April, the validity of Royal Decree-Law 16/2014, of 19 December, regulating the Activation for Employment Programme was extended, allowing access to applications submitted between 1 May 2017 and 30 April 2018.

This programme is specific and implemented on an extraordinary and temporary basis, and targets long-term unemployed persons. It includes active employment policies and labour intermediation, managed by the Public Employment Services, and offers economic assistance managed by the National Public Employment Service, linked to participation in said active employment policies.

The amendments aim to increase the group of people who may benefit from the programme and to streamline and facilitate the incorporation therein of possible beneficiaries. This is achieved by making access requirements more flexible and shortening deadlines for application. Moreover, it better defines the role of mentors designated by the public employment service of the Autonomous Community for assisting in job-seeking, and the collaboration of placement agencies in fulfilling this requirement is enhanced.

The beneficiaries of this programme are unemployed persons who, on the date of submitting the application to join, meet the following requirements:

In order to join the programme, and to stay therein, unemployed persons are under the following obligations:

Beneficiaries, as a result of being accepted and staying in the programme, may receive economic assistance during a maximum of six months, although they may continue carrying out the insertion actions set forth in the programme after that period.

V.        OLD-AGE BENEFITS

No legal or regulatory change has occurred in this regard.

VI.        EMPLOYMENT INJURY BENEFIT

-    Royal Decree 231/2017, of 10 March, on the establishment of a system to reduce contributions for occupational contingencies payable by companies that considerably reduced the frequency of accidents in the workplace (24 March 2017).

Given the need to provide more legal certainty to regulation of issuance of certificates for medical leave, confirmation of medical leave, and medical discharge due to recovery in processes of temporary incapacity for professional contingencies, this Royal Decree amends Articles 2, 3 and 5 of Royal Decree 625/2014, of 18 July, which regulated certain aspects of the management and control of temporary incapacity processes in the first 365 days of their duration, with the aim of including express reference to physicians from other entities participating in the management of temporary incapacity for professional contingencies, specifically physicians from companies that collaborate with Social Security management; the Royal Decree sets forth their authority to issue certificates for medical leave, confirmation of medical leave, and medical discharge due to recovery.

VII.        FAMILY BENEFITS

Part not ratified by Spain.

VIII.        MATERNITY BENEFITS

Act 9/2009, of 6 October, on extending the duration of paternity leave in the event of birth, adoption or fostering, set forth extending paternity leave to 4 weeks. The entry into force of this measure was delayed annually by successive Budget Acts, and finally entered into force on 1 January 2017, as set forth in Final Provision Eleven of Act 48/2015, of 29 October, on the General State Budget for 2016.

We shall now provide a summary of the fundamental characteristics of paternity benefits.

The consideration of protected situations is afforded to periods of rest/cessation of activity enjoyed as a result of:

Ø  Birth of a child

Ø  Birth of children through surrogacy

Ø  National or international adoption

Ø  Permanent or temporary fostering, provided that the duration of the temporary fostering is at least one year, and even if it is provisional. Article 22 of Royal Decree 295/2009, of 6 March, considers provisional fostering as a protected situation when it is formalized by persons who are members of the General Social Security scheme and are included in the scope of application of the Basic Statute of Public Employees (EBEP).

Ø   Guardianship for adoption purposes

Beneficiaries:

(Article 184 of the 2015 General Social Security Act) The beneficiaries shall be employed or self-employed persons, regardless of gender, who are members, or in a situation analogous to membership, of any Social Security system scheme, who are in a period of suspension/cessation/leave and accredit the minimum contribution periods required for each case.

The amount of the benefit is equivalent to 100% of the regulatory base, obtained from the worker’s contribution bases from the month before the date on which the subsidy began.

Duration: Since 1 January 2017, the duration is of 4 weeks, extended a further 2 days for each child after the second.

IX.        INVALIDITY BENEFITS

No legal or regulatory change has occurred in this regard.

X.        SURVIVORS' BENEFITS

Part not ratified by Spain


XI.        FINANCING

-   Order ESS/1588/2016, of 29 September, establishing the 2016 standardized contribution bases for the Social Security system, for non-occupational contingencies, in the Special Social Security Coal Mining Scheme (BOE 4 October 2016). (Error correction BOE 4 October 2016).

-   Royal Decree-Law 3/2016, of 2 December, adopting tax measures to consolidate public finances and other urgent social measures (3 December 2016).

This Royal Decree-Law revises the maximum limit and maximum contribution bases for the Social Security system upwards by 3%, and includes the future increases in the maximum limit, maximum contribution bases, and maximum limit on Social Security system pensions, in order to ensure that the Social Security system is viable.

The lack of an approved Budget Act for 2017 shall entail the automatic extension of the 2016 Budget until the 2017 Budget is approved, pursuant to Article 134.4 of the Spanish Constitution.

-   Royal Decree-Law 6/2016, of 23 December, on urgent measures to promote the National Youth Guarantee System (24 December 2017).

This law establishes the possibility of converting reductions in Social Security contributions into allowances, charged to the budget for the State Public Employment Service when the measures are designed to benefit young people registered with the National Youth Guarantee System.

The conversion of reductions into allowances will contribute to the continuity of these measures to promote hiring, but also, in a more immediate sense, to the sustainability of Spain's system of social protection.

This is therefore a set of indispensable measures, given the employment statistics for this section of the population; they are also urgently needed, in view of how rapidly the National Youth Guarantee System must be strengthened to increase the effectiveness of the fight against youth unemployment.

To understand this measure, it is important to note that there is a fundamental difference between Social Security contribution allowances and Social Security contribution reductions, since the latter are borne by the Social Security budget, while the former are borne by the General State Budget and therefore do not diminish Social Security resources.

-   Order ESS/77/2017, of 3 February, establishing the 2017 Social Security contribution bases for workers included in groups two and three of the Special Maritime Workers' Scheme (4 February 2017).

Article 115, Paragraph Seven, Point 2 of extended Act 48/2015, of 29 October, on the General State Budget for 2016, stipulates that the contribution for all the contingencies and situations protected under groups two and three of the Social Security's Special Maritime Workers' Scheme—as referred to in Article 10 of Act 47/2015, of 21 October, on social protection for workers in the maritime and fishing sector, and in Article 54 of the General Regulation on contribution and settlement of other Social Security rights, approved by Royal Decree 2064/1995, of 22 December—shall be applied to the remuneration determined in an order issued by the Ministry of Employment and Social Security, based on a proposal from the Social Marine Institute, after gathering input from key organizations in the sector. This decision shall be made for provinces, fishing methods and professional classes, based on the average remuneration earned in the preceding year.

This order serves this purpose, determining, based on the average remuneration earned in 2016, the single contribution bases for non-occupational and occupational contingencies by province, fishing method and professional class.

-   Order ESS/106/2017, of 9 February, implementing the legal provisions concerning Social Security contributions, unemployment, protection for termination of activity, the Wage Guarantee Fund and vocational training for 2017 (11 February 2017).

Article 9 of Royal Decree-Law 3/2016, of 2 December, adopting tax measures to consolidate public finances and other urgent social measures, provides for a revision of the maximum limit and maximum contribution bases in the Social Security system for 2017, and Single Additional Provision thereof provides for an 8% increase in the minimum wage.

These two measures made it necessary to approve the order revising the maximum limit for contribution in the different Social Security system schemes, as well as the minimum bases that increase by the same proportion as the minimum wage each year.

For contribution bases that cannot be revised pursuant to Royal Decree-Law 3/2016, of 2 December (Special Self-Employed Scheme minimum base), the applicable provision shall be Article 115 of Act 48/2015, of 29 October, on the 2016 General State Budget, regarding Social Security contribution bases and rates, unemployment, termination in activity of the self-employed, the Wage Guarantee Fund and vocational training in 2016, due to the automatic extension of the Budget for 2016 until the Budget for 2017 is approved, in application of Article 134.4 of the Spanish Constitution.

Thus, the order implements the legal provisions concerning Social Security contributions in 2017.

The maximum limit on the contribution base under the General Scheme shall be 3,751.20 a month from 1 January 2017. From the date indicated in Section 1, the minimum contribution limit for occupational accident and occupational illness contingencies shall be equivalent to the prevailing minimum wage, increased pro rata by the payments made for periods longer than a month, and may be no less than 825.60 euros a month.

The maximum contribution base under the General Social Security Scheme is set at 3,751.20 euros a month or 125.04 euros a day.

The contribution rates under the General Social Security Scheme for 2015 are 28.30%, of which 23.60pp shall be borne by the company and 4.70pp shall be borne by the worker. Moreover, it is established that a rate of 14.00% shall be applied to additional contribution for overtime due to force majeure, of which 12.00pp shall be borne by the company and 2.00pp by the worker.

The additional contributions for overtime that are not covered by the provision of the above paragraph shall be made in application of the rate of 28.30%, of which 23.60pp shall be borne by the company and 4.70pp by the worker.

For occupational accident and occupational illness contingencies, the applicable premium tariff rates shall be those provided for in Additional Provision Four of Act 42/2016, of 28 December, on the 2007 General State Budget. The resulting premiums shall be borne exclusively by the company.

The specific contribution bases and rates for the different Special Schemes in the Social Security system are also established.

Finally, the coefficients applicable to Social Security contributions in other specific cases, such as those subject to Special Agreements, collaboration in management or the exclusion of a particular contingency.

-   Royal Decree 231/2017, of 10 March, on the establishment of a system to reduce contributions for occupational contingencies payable by companies that have significantly reduced accident rates in the workplace (24 March 2017).

This Royal Decree amends Royal Decree 404/2010, of 31 March, which implements the system for reducing contributions for occupational contingencies payable by companies that have made special contributions to preventing and reducing accident rates in the workplace, as provided for by the consolidated text of the General Social Security Act. The system has been used by companies in different industries since it entered into force, incentivizing prevention of occupational accidents at the company level. However, the procedure that must be followed for the reductions to be granted is subject to certain limitations and barriers that hamper processing for applicant companies.

Therefore, paragraph b) of Additional Provision Four of Act 35/2014, of 26 December, amending the consolidated text of the General Social Security Act as regards the legal system for Mutual Societies for Occupational Accidents and Illnesses of the Social Security System, urges the Spanish Government to undertake an amendment with two clear aims: streamlining and simplifying the process for requesting, granting and applying the incentive, and establishing an objective system centred around accident rates. This reform also aims to encourage companies to adopt measures and processes that effectively contribute to reducing Social Security occupational contingencies.

The new measures established include reducing the administrative burden, with access to the incentive primarily focusing on compliance with limits on accident rates, with other requirements that are not accident-related, but which ensure that the reduction is granted correctly. The aforementioned limits shall be adapted to the circumstances of each economic activity, to promote access to the incentive for activities that entail greater risk, with the aim of improving prevention where it is most needed.

Without prejudice to companies fulfilling all of the legal and regulatory obligations concerning occupational health and safety, the link between recognition of entitlement to the incentive and compliance by employers with occupational health and safety obligations takes the form of the requirement that the application for the incentive be accompanied by a signed declaration, listing the specific preventive obligations that the applicant companies must fulfil, solely for the purpose of gaining access to the incentive.

As regards the amount, the incentive is set at 5% of the amount of the occupational contingency instalments, and 10% if investment is made in prevention of occupational health and safety risks; in the second of these two cases, the maximum limit on the incentive shall be that of the investment made.

With respect to the financing of this reduction, the General Social Security Act provides that 80% of the surplus, after making allowance for the Occupational Contingency Stabilization Reserve of the mutual societies that collaborate with the Social Security, shall be applied, among other activities, to incentivizing companies to adopt measures and processes that are effective in reducing accident rates in the workplace. The system of incentives will continue to enjoy the resources of this fund up to a limit of 3% of its total amount, although this percentage shall no longer apply to each of the mutual societies in proportion to the amounts they pay into the fund.

One new feature is the regulatory implementation of Article 93.2.c) of the consolidated text of the of the General Social Security Act, regulating the possibility for mutual societies to receive part of the granted incentive from companies, if so agreed between the parties.

In terms of Social Security, failure by companies to fulfil occupational health and safety obligations is penalized through measures such as extra cash benefit charges in the event of occupation accidents or illnesses—as provided for by Article 164 of the consolidated text of the General Social Security Act—the loss of Social Security contribution allowances and potential action, in such cases, by the Labour and Social Security Inspectorate. Independently, the Ministry of Employment and Social Security shall carry out the relevant studies to assess the suitability of establishing a system to increase occupational contingency contributions for companies that have overly high accident rates or fail to fulfil occupational health and safety obligations, in accordance with Article 146.3 of the aforementioned consolidated text.

XII.        INTERNATIONAL AGREEMENTS

-    Agreement Implementing the Multilateral Ibero-American Social Security Agreement, done in Lisbon, 11 September 2009. Signature by the Argentine Republic (BOE 1 July 2016).

-    Agreement Implementing the Multilateral Ibero-American Social Security Agreement, done in Lisbon, 11 September 2009. Signature by the Republic of Peru (BOE 16 November 2016).

-    Administrative Arrangement applying the Social Security Agreement between the Kingdom of Spain and the Republic of Paraguay, done in Madrid, 15 September 2016 (23 February 2017).

XIII.   JUDGMENTS ON MATTERS RELATING TO APPLICATION OF THE EUROPEAN CODE OF SOCIAL SECURITY

High Court of Justice of Catalonia Judgment 4427/2016, of 8 July 2016, in which the appellant alleged infringement of Article 65.10 of the European Code of Social Security. This claim was dismissed.


Madrid, 10 May 2017


22nd ANNUAL REPORT ON APPLICATION OF THE EUROPEAN CODE OF SOCIAL SECURITY

- Detailed report from Spain -

Report on the period ending: 31 December 2015.

Spain has ratified the following parts of the Code:

 Part II :

Medical care

 Part III :

Sickness benefit

 Part IV :

Unemployment benefit

 Part V :

Old-age benefit

 Part VI :

Employment injury benefit

 Part VIII :

Maternity benefit

 Part IX :

Invalidity benefit

As regards the request for information on the effect of the legal reforms that have been undertaken, the data available to fill out the information requested in the different sections of this report is at 31 December 2015, the last year for which the information required to fill out the Annual Report is available.
PART II

MEDICAL CARE

Article 9

A. Recourse is had to sub-paragraph (c) of the prescribed classes of residents, constituting not less than 50% of all residents.

B. All residents in Spain are protected if they belong to the Social Security System or other public social protection schemes; or if they do not belong to them, but lack sufficient means.

C.III Article 74. Title III.

A.     Number of residents protected (includes entitled breadwinners and beneficiaries)…………………………

46.546.677

B.     Total number of residents (includes children and the elderly)…………………….

46.557.008

C.    Percentage represented by the number of protected residents with respect to total residents…………….

99.9%

The figure corresponding to section A indicates the residents protected by the National Health System.

•           Currently all legal residents in Spain are entitled to healhcare of the National Service of Health.

•           Foreigners not registered or authorized as residents in Spain have also a limited right to healthcare, depending on their personal circumstances. Minors, pregnant women, applicants for international protection and victims of trafficking in human beings are entitled to full assistance.

•           The rest of foreigners not registered or authorized as residents in Spain have, at least, the right to healthcare in emergency medical situations. About this group many regions have improved health care.

•           The number of the letter A includes all the holders and beneficiaries, whether recognized by the INSS or by administrative mutualism, plus foreigners not registered or authorized as residents in Spain included in the Natinal Service of Health.


Part III

SICKNESS BENEFIT

Article 15

A.  Recourse is had to sub-paragraph (a) corresponding to protected persons, in the prescribed classes of employees, constituting not less than 50% of all employees.

B.  All the employees covered by the corresponding General or Special Scheme of the Social Security System are protected by this benefit.

C.  Article 74. Title I.

A.     Employees protected:

      i.        Under the General Scheme…...………………….

13,955.2

     ii.        Under Special Schemes:

47.0

­    Special Maritime Employee Scheme……...

43.4

­    Special Coal Mining Scheme

3.6

    iii.       TOTAL…………………………………………………...

14,002.1

B.     Total number of employees……………………………….

14,002.1

C.    Total protected employees (A.iii) as a proportion of total employees (B)

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2015

Article 16

A. Recourse has been had to Article 65 to calculate the benefit.

Article 65 Title I

A.    The benefit is calculated on the basis of daily contributions, which is the result of dividing the base of the previous month by the number of days corresponding to this contribution. In the case of non-occupational illness and non-occupational accident a percentage of 60% is applied to this daily calculation base, which is the daily amount of the benefit from day 4 to day 20. Starting on the 21st day the percentage applied is 75%.

B.  The skilled worker who has been taken as a standard is that corresponding to sub-paragraph (c) of paragraph 6 of Article 65, i.e. a male skilled worker whose earnings are equal to 125% of the average earnings of all the persons protected. The contribution base for the Social Security system coincides with these earnings.

B. 1The average earnings of persons protected has been obtained from the Labour Cost Survey carried out by the National Institute of Statistics, which includes the amounts corresponding to ordinary payments, meaning monthly payments, and including extra monthly payments that are calculated on a pro rata basis.

B. 2The base time referring to the above earnings that determines the wage of the skilled worker corresponds to the average of wages in 2015.

C.  The amount of the average wage of the male skilled worker chosen: 2,380.27 euros per month, representing a yearly amount of 28,563.21 euros and a daily amount of 79.34 euros (gross earnings).

The net wage in the case without children is 61.30 euros/day or 1,839 euros/month (16.39% of personal income tax (IRPF) withheld and 6.35% of Social Security payments), for an annual amount of 22,068 euros.

The net wage in the case with 2 children is 64.10 euros/day or 1,922.97 euros/month (12.86% of personal income tax withheld and 6.35% of Social Security payments), for an annual amount of 23,075.59 euros.

       Article 65. Title II.

       Standard beneficiary: man with a wife and two children and with a gross wage equal to Point C of the above Title.

D.           Amount of the benefit attributed in the base time.

                   Calculation base: 79.34 euros/day.

The daily amounts of the benefit in gross and net terms, taking into account the personal income tax withheld (for a man married to a woman who does not work and with two children it is 12.86%) and 6.35% for Social Security payments paid by the worker (4.7% for non-occupational contingencies, 1.55% for unemployment benefit and 0.1% for vocational training) are as follows:

Payment period

Gross amount euros/day

Net amount euros/day

Payments day 4 to 20

47.61

38.46

Payments starting day 21

59.51

48.07

E.    He does not have the right to family allowances as his income exceeds the eligibility limit for this benefit.

F.    He does not have the right to family allowances as his income exceeds the eligibility limit for this benefit.

G.   Percentage (D)/(C).

H.     Payment period

Gross

Net

Days 4 to 20:

60.0%

60.0%

Starting day 21:

75.0%

75.0%

Article 65. Title V.

Standard beneficiary: employed woman with an income equal to that of a skilled male worker. To calculate the benefit in this situation, for the purposes of personal income tax withholdings, the beneficiary is assumed to have no children.

A.    Amount of benefit.

B.     Payment period

Gross amount

euros/day

Net amount

euros/day

Days 4-20:

47.61

36.78

From day 21:

59.51

45.98

C.   Percentages of the amount of benefit with respect to the base wage:

Payment period

Gross

Net

Days 4-20:

60.0%

60.0%

From day 21:

75.0%

75.0%


PART IV

UNEMPLOYMENT BENEFIT

Article 20

Unemployment benefit protects the situation of workers who are willing and able to work, lose their job temporarily or definitively, or have their working day reduced temporarily by 10-70%, with the corresponding reduction in wages.

Article 21

A.   Recourse is had to sub-paragraph (a) of this Article.

B.   Employees who are in the situation described in Article 20 are eligible for unemployment benefit.

C.                   Article 74. Title I.

A.     Employees protected:

      i.        Under the General Scheme…...………………….

13,955.2

     ii.        Under Special Schemes:

47.0

­    Special Maritime Employee Scheme……...

43.4

­    Special Coal Mining Scheme…..

3.6

    iii.       TOTAL…………………………………………………...

14,002.1

B.     Total number of employees……………………………….

14,002.1

C.    Total protected employees (A.iii) as a proportion of total employees (B)

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2015


Article 22

A.  Recourse is had to the rules of Article 65.

Article 65. Title I.

A.  The amount of the benefit is calculated according to a base that is equal to the average of other contribution bases for the 180 days before the situation of unemployment. A factor of 70% is applied to benefits paid from day 1 to day 180, and of 50% for those paid from day 181. There is a maximum limit on the benefit, which in the case of a worker without dependent children is 175% of the monthly Public Multi-use Income Indicator (IPREM), plus a sixth corresponding to the twice-yearly extra payments. In 2015, this amount was 1,087.21 euros/month.

      For a worker with two children aged under 26 years, in 2015 the limit was 225% of the Public Multi-use Income Indicator, plus a sixth, i.e. 1,397.84 euros/month.

      The duration of the benefit depends on the prior periods of contributions, and ranges from 120 days to a maximum of 720 days.

B.  The skilled worker taken as a reference is as described in Article 65.6.(c) i.e. a person whose earnings are equal to 125% of the average earnings of all the persons protected.

      The average earnings of protected persons is obtained from the Annual Labour Cost Survey prepared by the National Statistical Institute, which publishes the amounts corresponding to total wage payments, including monthly payments, twice-yearly extra payments (calculated on a pro-rata basis), payments for periods of more than a month that are not calculated pro-rata, and delayed payments.

      The base time used to calculate the above earnings of a skilled worker corresponds to average wages in 2015.

D.The stated average wage of a male skilled worker of 2,380.27 euros/month represents a yearly amount of 28,563.21 euros and a daily amount of 79,34 euros (gross wage).

The net wage of a worker with 2 children is 64.10 euros/day or 1,922.97 euros/month (12.86% withheld for personal income tax and 6.35% for Social Security payments), giving an annual amount of 23,075.59 euros.

       Article 65. Title II.

D. Monthly amount of benefit for the standard beneficiary with a wife and two children.

      Gross wages of this standard worker: 2,380.27 euros/month.

      Net wages of this standard worker: 1,922.97 euros/month.

      The gross benefit is 70% of the calculation base for the first 180 days, and 50% of this base from day 181, equivalent to 1.666,19 euros/month and 1,190.13 euros/month, respectively. However, the gross amount received in the first 180 days is 1,397.84 euros/month, due to the above-mentioned limit (225% of the Public Multi-use Income Indicator).

      The net benefit is calculated by deducting the Social Security payments made by the unemployed person (4.7% in this case) and the percentage of personal income tax (0% for this unemployed worker with a wife who does not work and two children).

Payment period

Gross amount euros/month

Net amount­ euros/month

Days 1-180:

1,397.84

1,285.97

From day 181:

1,190.13

1,078.26

E.   There is no entitlement to family allowances as the earnings limit is exceeded.

F.    There is no entitlement to family allowances as the earnings limit is exceeded.

G.  Percentage of amount of benefit with respect to the standard earnings.

Payment period

Gross

Net

Days 1-180:

58.73%

66.87

From day 181:

50.00%

56.07

 Article 24

2.    In the Social Security schemes that include this contingency, the duration of the benefit depends on the duration of contributory employment during the last 6 years before the legal situation of unemployment, or the time when the obligation to make contributions ended, or where appropriate, since the start of benefit entitlement due to previous unemployment, according to the following scale:

Contribution period in employment over the last 6 years.

Duration of benefit

From 360 to 539 days

120 days

From 540 to 719 days

180 days

From 720 to 899 days

240 days

From 900 to 1,079 days

300 days

From 1,080 to 1,259 days

360 days

From 1,260 to 1,439 days

420 days

From 1,440 to 1,619 days

480 days

From 1,620 to 1,799 days

540 days

From 1,800 to 1,979 days

600 days

From 1,980 to 2,159 days

660 days

Over 2,159 days

720 days


PART V

OLD-AGE BENEFIT

Article 26

2.   Act 27/2011 of 1 August, establishes the ordinary retirement age at 67 years (65 years if at least 38 and a half years of contributions have been paid), from 2027, although there will be a transitional period of increases from 65 years to 67 years, which started on 1 January 2013. Act 27/2011, amended subsequently by Royal Decree-Law 5/2013, also changed the scheme for early retirement, establishing the possibility of early retirement if the worker is a member of a mutual society, whether the dismissal is voluntary or involuntary, etc., in accordance with the following rules:

·         From the age of 60 years, with coefficients that reduce the amount of the pension, for workers who paid contributions to Mutual Labour Societies before 1 January 1967. The reduction coefficient, of 8% for each year by which retirement is taken early, will be lower if more than 30 years of contributions have been paid.

·         Up to four years before the ordinary retirement age, if the worker has paid at least 33 years of contributions, is in a situation of involuntary unemployment and has registered as a jobseeker at least 6 months before the application to receive a retirement pension.

·         Up to two years before the ordinary retirement age, in the case of voluntary early retirement and if at least 35 years of contributions have been paid.

Article 26.2 of the Code allows the retirement age to be increased from 65 years if the number of residents that have reached the increased age constitute at least 10% of the number of residents of up to that age who are older than 15 years. In accordance with the data on the population resident in Spain, at 1 January 2016, the persons aged 65 years or older (8,699,893) amounted to 28.1% of the population aged 15 to 64 years inclusive (30,720,533), clearly exceeding the above-mentioned value of 10%.

3.   The possibility exists of flexible retirement, by which receipt of a retirement pension, once eligibility is established, can be combined with part-time work amounting to 50-75% of full-time working hours (from 17 March 2013). The amount of the pension is reduced in inverse proportion to the reduction in the working day. Under partial retirement, a retirement pension may also be combined with part-time work, with or without a supplementary hand-over contract (contrato de relevo), starting at the age of 60 years (for members of mutual societies) or of 61 years (which will be increased gradually to 63 years during a transitional period until 2027), provided that all eligibility conditions for retirement except that of age are met.

      Royal Decree-Law 5/2013, of 15 March, on measures to favour the continuity of the working life of older workers and to promote active ageing, also enables compatibility between receipt of a retirement pension and employed or self-employed work, once the legal retirement age has been reached, for workers with long contribution periods. In this case, full-time or part-time work is compatible with receiving 50% of the pension (with reductions in social security contributions for temporary invalidity and occupational contingencies, as well as a special “solidarity” contribution of 8%).

Article 27

A.    Option a)

B.    Employed or self-employed workers who cease their working activity and meet the following requirements may be beneficiaries of a retirement pension:

­    Have made at least 15 years of contributions, of which at least 2 must be within the last 15 years before the date of retirement.

­    In 2015, be 65 years and 3 months of age or 65 years having paid 35 years and 9 months of contributions, and have ended their working activity. Early retirement may be taken at 60 or 61 years of age with reduction coefficients, as indicated above

C. (i)Article 74. Title I

A.     Employees protected (‘000):

      i.        Under the General Scheme…...………………….

13,955.2

     ii.        Under Special Schemes:

47.0

-         Special Maritime Employee Scheme...

43.4

-         Special Coal Mining Scheme…..

3.6

    iii.        TOTAL…………………………………………………...

14,002.1

B.     Total number of employees……………………………….

14,002.1

C.    Total protected employees (A.iii) as a proportion of total employees (B)

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2015

Article 28

A.     Recourse is had to Article 65.

Article 65. Title 1.

A.  The calculation base for 2015 is the average of the worker’s contribution bases for the 18 years before the month prior to retirement. These bases are updated, except in the last two years, in line with the changes in the consumer price index.

The amount of the pension is calculated by applying a percentage to the calculation base according to the number of years of contributions. With 35 years and 6 months of contributions paid, the figure is 100%. The percentage varies according to the following scale:

YEARS

PERCENTAGE OF REGULATORY BASE

With 15 years of contributions

50%

From 2013 to 2019

0.21% for each additional month of contributions between months 1 and 163, and 0.19% for the following 83 months.

From 2020 to 2022

0.21% for each additional month of contributions between months 1 and 106, and 0.19% for the following 146 months.

From 2023 to 2026

0.21% for each additional month of contributions between months 1 and 49, and 0.19% for the following 209 months.

Starting in 2027

0.19% for each additional month of contributions between months 1 and 248, and 0.18% for the following 16 months.

At 65 years of age, the amount of the pension calculated with 35 years and 6 months of contributions paid is 100%.

Early retirement may be taken at 60-61 years of age (in 2015). In this case, the amount of the pension is reduced by 6-8pp (depending on the years of contributions and whether early retirement is by choice or not) for each year remaining until reaching 65 years of age.

B. The male skilled worker taken as a reference corresponds to the case described in sub-paragraph (c) of paragraph 6 of Article 65: a person whose earnings are equal to 125% of the average earnings of all the persons protected.

B.1.b)    The average earnings of persons protected is obtained from the Labour Cost Survey carried out by the National Institute of Statistics, which includes the amounts corresponding to ordinary payments, meaning monthly payments plus the twice-yearly extra payments, which are calculated on a pro rata basis.

B.2.        The base time for calculating the above earnings of a skilled male worker corresponds to the average wages in 2015.

C.         The amount of the average wage of the male skilled worker chosen is 2,380.27 euros/month, representing a yearly amount of 28,563.21 euros (gross).

The net wage in the case of the standard worker, with no children, is 61.30 euros/day or 1,839 euros/month (16.39% withheld for personal income tax and 6.35% for Social Security payments), giving an annual amount of 22,068 euros.

Article 65. Title III.

D. Recourse is had to Article 29.1 The standard beneficiary is a male worker who has paid contributions for 30 years and is now 65 years old. In accordance with the provisions of Act 27/2011 and Royal Decree-Law 5/2013, he cannot retire at 65 years old with 30 years of contributions paid, but can do so at 65 years and 3 months (with 30 years of contributions paid), and so the amount of the retirement pension will be 87.46% of the regulatory base.

     The regulatory base for calculating the pension is obtained as the average of the contributions corresponding to the last 18 years applicable in 2015. The amount for the standard beneficiary is 2,054.40 euros.

     The gross amount of the pension is 1,796.78 euros/month, which in 14 monthly payments amounts to 25,154.92 euros/year, for a pension that starts on 31 December 2015.

The net amount of the pension is 21,375.67 euros/year (personal income tax withheld for a married pensioner: 15%).

E. There is no entitlement to family allowances as the income limit is exceeded.

F. There is no entitlement to family allowances as the income limit is exceeded.

G. Pension as a percentage of the base wage:

65 years and 2 months

Gross

Net

88.83

96.86

Article 65. Title V.

Beneficiary: a female employee with an income equal to that of the above-described male worker, who has worked for 30 years and who is 65 years and 3 months old, since, as indicated above, the statutory retirement age in this case is 65 years and 3 months (with 30 years of contributions paid). To calculate the pension in this situation, for the purpose of personal income tax withholdings, she is assumed to be a beneficiary without children.

Gross average wage 2,380.27 euros/month or 28,563.21 euros/year.

Net average wage: 22,068 euros/year.

D.  Gross annual amount of pension: 25,154.92 euros.

      Net annual amount of pension: 21,375.67 euros (personal income tax withheld: 15%)

G.   Pension as a percentage of the base wage:

65 years and 2 months

Gross

Net

88.83

96.86

B. Recourse is not had to this section.

C. Recourse is had to Article 65 for revising retirement pensions.

Article 65. Title VI.

1.   Retirement pensions have been uprated by 0.25% as a result of the application of Act 23/2013 of 23 December, regulating the Sustainability Factor and the Social Security Pension System Uprating Index, which establishes the pension uprating index that has been applicable every year since 2014 to all Social Security contributory pensions. In accordance with the provisions of this rule, the application of the uprating index may not give rise to an annual increase in pensions of less than 0.25% or of more than the percentage increase in the consumer price index in the previous year plus 0.50pp. The review clause compensating for the difference between the forecast and the real consumer price index has been eliminated.

2.    

Period considered

Price index (1)

A.

 31 December 2014

103.472

B.

 31 December 2015

103.490

C.

Percentage B/A

0.017

(1) Base 2011.

3.

Period considered

Retirement pension of the standard beneficiary

A. Pension at 31-12-2014

1,798.87

B. Pension at 31-12-2015

1,803.37

C. Percentage B/A

0.25

Article 29

2.    Recourse is had to paragraphs 1 and 2 of this Article.

       Standard beneficiary with a regulatory base for the retirement pension of 2,054.40 euros.

-       For 30 years of contributions paid and at 65 years and 3 months of age, the regulatory base is 87.46%.

      Amount of pension: 1,796.78 euros/month.

-       For 15 years of contributions paid and at 65 years and 3 months of age, the regulatory base is 50%.

-       Amount of pension: 1,027.20 euros/month.

            In addition to the contributory retirement pensions indicated above, non-contributory retirement pensions are granted when the worker has not made contributions before, or does not meet the minimum required contribution period, with the following conditions:

-  Be 65 or older.

-  Reside legally in Spain and have done so for at least 10 years since the age of 16, of which 2 must be consecutive and immediately before the date of application for the pension.

-  Not have sufficient income or means. Income or means are considered to be insufficient when the total household income of the person in question does not exceed a given limit for accumulated resources, based on the number of cohabitants and on the number of parents/grandparents and of children/grandchildren of the beneficiary (in the case of a single beneficiary with no such family members, this limit is equivalent to the amount of the benefit, which in 2015 is 5,136.60 euros).


PART VI

EMPLOYMENT INJURY BENEFIT

Article 32

      Types of permanent incapacity due to occupational accident or illness that may produce benefit entitlement:

-       Permanent partial incapacity for the usual occupation. This is defined as an incapacity that is less than total, but which causes the worker to lose at least 33% of normal occupational capacity, without preventing the performance of fundamental, inherent tasks.

-       Permanent total incapacity for the usual occupation. This is defined as an incapacity that prevents the worker from carrying out the tasks that are fundamental and inherent to the habitual occupation; nevertheless, a different occupation can be performed. Qualified total disability arises when the worker is 55 years old or more and cannot find a job compatible with his/her physical condition.

-       Absolute permanent incapacity for all work. This incapacity is defined as that which completely prevents the worker from undertaking any profession or trade.

-       Major incapacity. This is defined as the situation arising when a worker has a permanent incapacity that, as a result of anatomical or functional losses, requires the assistance of another person to perform the essential acts of life.

      With respect to survivors' benefits, the widowhood pension is granted irrespective of whether the widow(er) works or has her/his own financial resources.

Article 33

A.   This benefit is granted to all employees who are covered by the corresponding Social Security scheme (General or Special).

B.   Article 74. Title I.

D.    Employees protected:

    iv.        Under the General Scheme…...………………….

13,955.2

     v.        Under Special Schemes:

47.0

­    Special Maritime Employee Scheme……...

43.4

­    Special Coal Mining Scheme…..

3.6

    vi.       TOTAL…………………………………………………...

14,002.1

E.     Total number of employees……………………………….

14,002.1

F.     Total protected employees (A.iii) as a proportion of total employees (B)

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2015

Article 34

A.   The health benefits provided are the same as those stipulated in Part II.

B.   Health and pharmaceutical benefits are free of charge to persons receiving benefits in respect of occupational accident or illness.

      C.  In cases of occupational accident or illness, Social Security health care is especially focused on providing physical rehabilitation to achieve the worker’s complete occupational recovery.

Article 35

The National Health System and the Mutual Societies that collaborate with the Social Security system seek to achieve the worker’s occupational rehabilitation to equip him/her for work appropriate to someone whose capacities may be diminished by occupational accident or illness.

Article 36

B.   Recourse is had to Article 65 to calculate the benefit.

B.i.

Article 65. Title I.

A. The pension regulatory base in cases of total permanent incapacity for the usual occupation, absolute permanent incapacity for all work and major incapacity is obtained from the full daily wage payable on the day of the accident (including ordinary payments, and the apportionment of other concepts such as extraordinary payments, seniority benefits, profit sharing or participation in income, bonuses and supplementary salaries).

B. The skilled worker taken as a reference is the worker referred to in Article 65.6.c), a person whose earnings are equal to 125% of the average earnings of all the persons protected.

     B.1.b.   The average earnings of protected persons is determined by reference to the Labour Cost Survey conducted by the National Institute of Statistics, which reflects the amounts corresponding to total payments, which include monthly payments, extraordinary payments that are prorated, payments for periods exceeding one month that are not prorated and late payments

     B.2.            The base time for calculating the above earnings of a skilled male worker corresponds to the average wages in 2015.

     C.         The amount of the average wage of the male skilled worker chosen is 2,380.27 euros/month, representing a yearly amount of 28,563.21 euros (gross).

The net wage in the case of a worker with two children is 64.10 euros/day or 1,922.97 euros/month (12.86% withheld for personal income tax and 6.35% for Social Security payments), giving an annual amount of 23,075.59 euros.


Article 65. Title II.

Standard beneficiary: married man with two children.

D.  Amount of benefit in the base time.

Regulatory base: 2,380.27 euros/month.

Degree of incapacity

Gross amount

Personal income tax withheld %

Net amount

Total incapacity (55% RB)

1,309.15

0

1,309.15

Total incapacity (75% RB)

1,785.20

5.97

1,678.56

Absolute incapacity

2,380.27

Exempt

2,380.27

Major incapacity

3,451.39

Exempt

3,451.39

Recourse is had to Article 57, paragraph 1.

Permanent incapacity pensions in cases of absolute incapacity or major incapacity are not subject to taxation.

E. There is no entitlement to family allowances as the income limit is exceeded.

F. There is no entitlement to family allowances as the income limit is exceeded.

G.              Pension as a percentage of the base wage.

Degree of incapacity

Gross

Net

Total incapacity (55% BR)

55.00%

68.08%

Total incapacity (75% BR)

75.00%

87.29%

Absolute incapacity

100.00%

123.78%

Major incapacity

145.00%

179.48%


Article 65. Title IV.

Standard beneficiary: Widow with two children.

D. Amount of benefit in the base time: 52% of the regulatory base of the person protected.

Regulatory base of the standard person protected: 2,380.27 euros/month.

Gross amount of the widowhood pension: 1,237.74 euros/month.

E. There is no entitlement to family allowances as the income limit is exceeded.

F. There is no entitlement to family allowances as the income limit is exceeded..

G.   Widowhood pension as a percentage of the base wage.

Gross

Net

52.00%

64.37%

Article 65. Title V.

Standard beneficiary: employed woman with a wage equal to that of a skilled male worker.

To calculate the benefit in this situation, it is assumed, for the purpose of personal income tax withholdings, that the beneficiary has no children. Gross salary: 2,380.27 euros/month.

The net salary in the above case of a beneficiary without children is 61.30 euros/day or 1,839 euros/month (personal income tax withheld: 16.39%; Social Security contributions: 6.35%), with an annual total amount of 22,068 euros.

Regulatory base: 2,380.27 euros/month.

D.  Amount of the benefit.

Degree of incapacity

Gross amount

Personal income tax withheld

Net amount

Total incapacity (55% RB)

1,309,15

5.94

1,231.39

Total incapacity (75% RB)

1,785,20

10.96

1,589.60

Absolute incapacity

2,380,27

Exempt

2,380.27

Major incapacity

3,451,39

Exempt

3,451.39

G.       Pension as a percentage of the base wage.

Degree of incapacity

Gross

Net

Total incapacity (55% RB)

55.00%

66.96%

Total incapacity (75% RB)

75.00%

86.44%

Absolute incapacity

100.00%

129.43%

Major incapacity

145.00%

187.68%

Article 65. Title VI.

      1.   Occupational accident or illness benefits were uprated by 0.25% in 2015 as a result of application of Act 23/2013, of 23 December, regulating the Sustainability Factor and the Social Security Pension System Uprating Index, which establishes the pension uprating index that has been applicable every year since 2014 to all Social Security contributory pensions. In accordance with the provisions of this rule, application of the uprating index may not give rise to an annual increase in pensions of less than 0.25% or of more than the percentage increase in the consumer price index in the previous year plus 0.50pp. The review clause compensating for the difference between the forecast and the real consumer price index has been eliminated.

2.

Period considered

Price index (1)

A.

31 December 2014

103.472

B.

31 December 2015

103.490

C.

Percentage B/A

0.017

(1) Base 2011.

3.

Period considered

Absolute incapacity benefit (occupational accident or illness)

A. Benefit at 31-12-2014

2,354.77

B. Benefit at 31-12-2015

2,360.66

C. Percentage B/A

0.25

C.   Partial permanent incapacity for the usual occupation does not produce an entitlement to periodic benefits. The benefit consists of a lump-sum amount equivalent to 24 months of the regulatory base used to determine the cash benefit for temporary incapacity.

D.   In addition to the lump-sum payment for partial permanent incapacity, in the event of total incapacity, the periodic benefit may exceptionally be replaced by a lump-sum payment, provided that the worker is under 60 years of age and has requested this form of benefit within three years following the date of the benefit decision, according to the following scale:

-Beneficiary aged under 54 years: 84 monthly payments.

-Beneficiary aged 54 years or more: from 72 monthly payments at the age of 54 years to 12 monthly payments at the age of 59 years, on a descending scale of 12 monthly payments per year.


PART VIII

MATERNITY BENEFITS

Article 48

A. Option a)

B. Maternity benefit is payable to women who are registered and occupationally active or in an equivalent situation to active, and who have accredited payment of at least 180 days Social Security contributions within the 7 years immediately preceding childbirth or date of administrative or judicial decision of fostering or of the judicial decision approving adoption, in the case of workers over 26 years of age. For women aged 21-26 years, Social Security contributions of 90 days are required, and for women aged under 21 years, no minimum contribution period is required.    In 2007, paternity leave was also established, for a period of 13 days, which was later extended (under Act 9/2009, of 6 October, extending the duration of paternity leave) to four weeks, although its entry into force was subsequently delayed until 1 January 2017.

C. (i) Article 74. Title I.

Men

Women

Total

A. Number of protected employees (‘000):

 i. Under the General Scheme

7,084.3

6,870.8

13,955.1

 ii. Under Special Schemes:

42.6

4.4

47.0

 - Special Maritime Employee Scheme

39.3

4.1

43.4

 - Special Coal Mining Scheme

3.3

0.3

3.6

 iii. TOTAL

7,126.9

6,875.3

14,002.1

B. Total number of employees

7,126.9

6,875.3

14,002.1

C. Total protected employees (A.iii) as a proportion of total employees (B))

100%

100%

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2015


Article 50

A. Recourse is had to Article 65 to calculate the benefit.

B.i.

Article 65. Title I.

A. The benefit is calculated on a daily basis, determined by dividing the contribution base of the previous month by the number of days to which this contribution corresponds. A rate of 100% is then applied to this calculation result to obtain the amount of the benefit.

B. The skilled worker taken as a reference is as described in Article 65, paragraph 6 c), i.e. a person whose earnings are equal to 125% of the average earnings of all the persons protected.

     B.1.b)    The average earnings of persons protected is obtained from the Labour Cost Survey carried out by the National Institute of Statistics, which includes the amounts corresponding to ordinary payments, meaning monthly payments plus the twice-yearly extra payments, which are calculated on a pro rata basis.

       B.2.     The base time for calculating the above earnings of a skilled male worker corresponds to the average wages in 2015.

C.   The amount of the average wage of the standard male skilled worker is 2,380.27 euros/month, representing a yearly amount of 28,563.21 euros and a daily amount of 79.34 euros.

       The net wage in the case of a worker with two children is 64.10 euros/day or 1,922,97 euros/month (12.86% withheld for personal income tax and 6.35% for Social Security payments), giving an annual amount of 23,075.59 euros.

Article 65. Title V.

Standard beneficiary: employed woman with two children, paid a wage equal to that of the male worker.

D. Amount of the benefit.

Gross amount

Net amount

79.34 euros/day

64.10 euros/day

G.    Percentage of the amount of gross and net benefit with respect to salary (during maternity leave, Social Security contributions must continue to be paid).

Gross

Net

100%

100%

Article 51

A minimum contribution period of 180 days must have been paid during the seven years immediately prior to childbirth. If this contribution period has not been reached, a non-contributory benefit of 42 days will be granted.

Article 52

1.  The benefits stipulated in Article 49 will be granted throughout the contingency period.

a)    The duration of maternity leave is 16 weeks, which in the case of multiple births is extended by another 2 weeks for each child from the second, and also in the case of children with disabilities.

b)    The duration of maternity leave coincides with that of the maternity benefit. In addition, the three years following the date of birth, in the case of leave taken for child care, will be considered as a Social Security contribution period for the purpose of entitlement to certain benefits, such as those corresponding to retirement, disability, death and survival. When the father and the mother both work, only one is entitled to exercise this right.

2.  The benefit may be suspended if it is obtained fraudulently (Article 68, d).


PART IX

INVALIDITY BENEFIT

Article 54

Types of permanent incapacity that may generate the right to a periodical benefit:

-       Total permanent incapacity. This incapacity prevents the worker from carrying out the fundamental tasks of his usual occupation, but he can work in another occupation. Qualified total invalidity is when the worker is 55 years of age and cannot find work compatible with his physical state. It involves an increase of 20% in the regulatory base.

-       Absolute permanent incapacity for all work. This incapacity prevents the worker from engaging in any occupation or trade.

-       Major invalidity. This is the situation of a worker affected by a permanent incapacity, who as a result of anatomical or functional losses needs the assistance of another person to perform daily routines.

Article 55

      A. Recourse is had to sub-paragraph (a) concerning protected persons in the prescribed classes of employees, constituting not less than 50% of all employees.

      B. All the employees covered by the corresponding General or Special Scheme of the Social Security System are protected.


      C.Article 74. Title I.

A.     Employees protected:

   vii.        Under the General Scheme…...………………….

13,955.2

  viii.        Under Special Schemes:

47.0

­    Special Maritime Employee Scheme……...

43.4

­    Special Coal Mining Scheme

3.6

    ix.       TOTAL…………………………………………………...

14,002.1

B.     Total number of employees……………………………….

14,002.1

C.    Total protected employees (A.iii) as a proportion of total employees (B)

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2015

Article 56

A.Recourse has been had to Article 65 to calculate the benefit.

Article 65. Title I.

A.  The form of obtaining the calculation base of the benefit for permanent incapacity differs depending on the origin of the invalidity:

-Incapacity resulting from non-occupational illness. The calculation base is the quotient resulting from dividing by 112 the contribution bases of the beneficiary during the 96 months prior to the month before the start of the contingency. If the contribution period required is under 8 months, this base is obtained by dividing the sum of the monthly contribution bases corresponding to the minimum period required by the number of months that these bases refer to and multiplying the divisor by the coefficient 1.1666.

- Incapacity due to accident not related to work. The regulatory base is the quotient resulting from dividing by 28 the sum of the worker's contribution bases during an uninterrupted period of 24 calendar months, chosen by the beneficiary from the period of 7 years immediately before the date on which the contingency begins.

       To calculate the benefit, various percentages are applied to the regulatory base, according to the degree of recognized incapacity:

·           For total permanent incapacity, the figure is 55%, which increases by 20pp for persons over the age of 55 who do not work.

·           For absolute permanent incapacity, 100%.

·           For major invalidity, there is an additional supplementary payment to the amount of the permanent incapacity pension, resulting from the sum of 45% of the minimum contribution base under the General Scheme and 30% of the worker's last contribution base (the minimum level of this supplement is 45% of the permanent incapacity pension).

B. The male skilled worker taken as a standard is the one included in sub-paragraph (c) of paragraph 6 in Article 65: one whose earnings are equal to 125% of the average earnings of all the persons protected.

B.1.b.The average earnings of persons protected have been obtained from the Labour Cost Survey carried out by the National Institute of Statistics, which gives the amounts corresponding to ordinary payments, meaning monthly payments, including extra monthly payments that are calculated on a pro rata basis.

B.2. The base time used to calculate the above earnings of the skilled worker corresponds to average wages in 2015.

C. Gross average wage of the skilled manual male employee chosen: 2,380.27 euros per month, representing a yearly amount of 28,563.21 euros.

The net wage in the case of a childless worker totals 61.30 euros/day or 1,839 euros/month (16.39% of personal income tax withheld and 6.35% Social Security payments), which accounts for an annual amount of 22,068 euros.

The net wage for a man with 2 children is 64.10 euros/day or 1,922.97 euros/month (12.86% of personal income tax withheld and 6.35% of Social Security payments), which accounts for an annual amount of 23,075.59 euros.

Article 65. Title II.

Standard beneficiary: man with wife and 2 children.

D.   Amount of benefit attributed in the base time. For the purpose of calculating the net pension it should be noted that the absolute incapacity and major invalidity pensions are not subject to tax.

- For non-occupational illness. Regulatory base 2,090.02 euros/month.

Degree of incapacity

Gross

annual amount

% personal income tax withheld

Net

annual amount

Total Incapacity (55% RB)

16,093.16

0

16,093.16

Total Incapacity (75% RB)

21,945.22

6.42

20,536.61

Absolute Incapacity

29,260.29

Exempt

29,260.29

Major Invalidity

42,427.42

Exempt

42,427.42

-Due to accident not related to work. Regulatory base 2,028.57 euros/month.

Degree of incapacity

Gross

annual amount

% personal income tax withheld

Net

annual amount

Total Incapacity (55% RB)

15,619.98

0

15,619.98

Total Incapacity (75% RB)

21,299.97

5.86

20,051.06

Absolute Incapacity

28,399.96

Exempt

28,399.96

Major Invalidity

41,179.95

Exempt

41,179.95

E.   Is not entitled to family allowances as his income exceeds the limit.

F. Is not entitled to family allowances as his income exceeds the limit.

G.    - Amount of the benefit as a percentage of the base wage, in the case of non-occupational illness:

Degree of incapacity

Gross

Net

Total Incapacity (55% RB)

56.34

69.74

Total Incapacity (75% RB)

76.83

89.00

Absolute Incapacity

102.44

126.80

Major Invalidity

148.54

183.86

- Benefit as a percentage in the case of accident not related to work:

Degree of incapacity

Gross

Net

Total Incapacity (55% RB)

54.69

67.69

Total Incapacity (75% RB)

74.57

86.89

Absolute Incapacity

99.43

123.07

Major Invalidity

144.17

178.46

Article 65. Title V.

Beneficiary: female employee with income equal to a male worker.

For the purpose of calculating the benefit in this situation with respect to personal income tax withholding, the beneficiary is considered to be without children.

Gross amount of wage 2,380.27 euros per month, or 28,563.21 euros per year.

Amount of net wage (in the case without children): 1,839 euros/month or 22,068 euros/year.

D.  

           - For non-occupational illness. Regulatory base: 2,092.92 euros.

Degree of incapacity

Gross

annual amount

% personal income tax withheld

Net

annual amount

Total Incapacity (55% RB)

16,093.16

6.39

15,064.92

Total Incapacity (75% RB)

21,945.22

11.29

19,468.28

Absolute Incapacity

29,260.29

Exempt

29,260.29

Major Invalidity

42,427.42

Exempt

42,427.42

- Incapacity due to accident not related to work. Regulatory base: 2,027.29 euros/month.

Degree of incapacity

Gross

annual amount

% personal income tax withheld

Net

annual amount

Total Incapacity (55% RB)

15,619.98

5.83

14,708.71

Total Incapacity (75% RB)

21,299.97

10.88

18,983.20

Absolute Incapacity

28,399.96

Exempt

28,399.96

Major Invalidity

41,179.95

Exempt

41,179.95

G. - Amount of the benefit as a percentage of the base wage, in the case of non-occupational illness.

Degree of incapacity

Gross

Net

Total Incapacity (55% RB)

56.34

68.27

Total Incapacity (75% RB)

76.83

88.22

Absolute Incapacity

102.44

132.59

Major Invalidity

148.54

192.26

- Benefit as a percentage in the case of accident not related to work:

Degree of incapacity

Gross

Net

Total Incapacity (55% RB)

54.69

66.65

Total Incapacity (75% RB)

74.57

86.02

Absolute Incapacity

99.43

128.69

Major Invalidity

144.17

186.60

B. Recourse has not been had to this paragraph.

C. Recourse has been had to Article 65 for uprating retirement pensions.

Article 65. Title VI.

1.  Permanent incapacity pensions have been incremented by 0.25% as a result of the application of Act 23/2013 of 23 December, regulating the Sustainability Factor and the Social Security Pension System Uprating Index, which establishes the pension uprating index (IRP) applicable every year since 2014 to all the Social Security contributory pensions. In accordance with the provisions of this rule, the application of the uprating index may not give rise to an annual rise in pensions of less than 0.25% or more than the percentage increase in the consumer price index in the previous year plus 0.50%. The review clause that compensates the difference between the forecast and real CPI has been abolished.

2.

Period considered

Price index (1)

A.

31 December 2014

103.472

B.

31 December 2015

103.490

C.

Percentage B/A

0.017

(1)  2011 base.

3.

Period

considered

Absolute Incapacity Pension

(non-occupational illness)

Absolute Incapacity Pension

(accident not related to work)

A. Pension as on 31/12/2014

2,092.92

2,027.29

B. Pension as on 31/12/2015

2,098.15

2,032.36

C. Percentage B/A

0.25

0.25

Article 57

      1.   When the incapacity is caused by non-occupational illness, the prior contribution period required in 2015 depends on the age of the worker:

- Aged under 31 years: a third of the time between his 16th birthday and the date when the contingency began.

- Aged 31 or more: a quarter of the time between his 20th birthday and his age on the date when the contingency began with a minimum of five years. At least a fifth of the contribution period required must be within the last 10 years.

            When the incapacity is the result of an accident not related to work, the prior contribution period is not required.

            Recourse has been had to paragraphs 1 and 2 of this Article.

      2.   In the case of incapacity due to non-occupational illness, the calculation base of the pension is determined by using the monthly contribution bases of the last 8 years. If because of the worker's age, the minimum period required is lower, the regulatory base is calculated similarly to the minimum period required (sum of the monthly contribution bases updated by the CPI up to the 25th month before the contingency began, and divided by the product of "the number of months x 14/12").

In the case of incapacity due to an accident not related to work, as no prior contribution period is required, in theory it is the same as the benefit under sub-paragraphs 1 (a) and 2 (a) of Article 57.

In addition to the contributory incapacity pensions mentioned above, non-contributory pensions are granted without the need for a prior contribution period, with the following requirements:

-          Be over 18 years of age and under 65.

-          Be a legal resident in Spain and have been one for 5 years, of which 2 must be consecutive and immediately before the date of the request for a pension.

-          Be affected by a chronic disability or illness at a degree of 65% or more.

-          Not have sufficient income or means. Insufficient income or means are considered to be when the sum of income of the person in question is less than the annual amount of the benefit (5,136.6 euros in 2015).

Article 58

Invalidity benefit is granted for the entire duration of the contingency and may be reviewed as a result of modifications in the recognized degree of incapacity. However, permanent incapacity pensions change their name to retirement pensions when the beneficiaries reach the ordinary retirement age (at least 65). This does not imply any change to the conditions of the benefit being received.

The benefit may be terminated if a medical revision identifies a recovery.


PART XII

COMMON PROVISIONS

Article 70

The content of this Appendix refers to compliance with the provisions of Part XII (Common Provisions), Article 71 of the report on Convention No. 102 on Social Security (Minimum Standards). The figures correspond to 2015, the latest available settlement. They include both the amounts of the cash benefits corresponding to the parts ratified by Spain and the level of contributions made by the protected employees.

They do not therefore include non-contributory retirement and invalidity pensions, family allowances, healthcare and social services, which are universal and are financed by central government contributions under the Social Security Consolidation and Rationalization Act, which regulates the financial flows of the Social Security System. Thus contributory benefits are financed basically from social security contributions, while the contribution of central government is clearly limited to covering healthcare, as well as non-contributory benefits, according to the nature of each. The specific allocation to each is technically earmarked for these purposes (retirement, invalidity, family protection, etc.). Since 2013, the central government has been responsible for the full financing of top-ups to minimum pensions, thus complying with the first recommendation of the Toledo Pact on the separation and clarification of sources of finance, within the deadline set out (1 January 2014) in the Fourteenth Transitional Provision of the General Social Security Act, as well as the Twelfth Additional Provision of Act 27/2011, which mentions the "special interest in complying with the commitments to finance the top-ups to minimum pensions through taxes."

In addition, within the area of health and social service expenditure, the reforms to funding of Autonomous Communities resulting from the new system arising from the Agreement of the Fiscal and Finance Council of 27 July 2001, aim to guarantee the funds needed by these Autonomous Communities that affect the services transferred and that have an impact basically on health and social services. According to this Agreement, the governments of the Autonomous Communities fund this amount using a portion of the tax revenues transferred. That is why the credits that have traditionally been allocated in the budget of the Social Security System for these items no longer appear in the accounts since 2002, either on the expenditure or income side.

In contributory benefits, the finance comes from the social contributions that are divided between employers and workers. In the General Scheme in 2015 the worker was discounted 4.70% of his contribution base and the employer contributed 23.6% of this base. The contribution bases correspond to wages actually received, but after applying maximum and minimum limits according to occupational categories. In 2015 the maximum limit was 3,606 euros/month and the minimum 756.6 euros/month.

There is a special branch for work-related accidents and occupational illnesses, in which the premiums covering these contingencies are considered specific earmarked payments financed exclusively by employers, depending on the activities carried out by the workers involved, so they are not included in the information provided.


The figures corresponding to 2015 referred to each of the parts ratified by Spain are as follows:

In millions of euros

Parts

Funds dedicated to the protection of employees, their spouses and children

(A)

Contributions paid by protected employees

(B)

Part IV. Unemployment (1) ......

30,115.94

4,020.12

Part III. Temporary Incapacity.

4,627.33


15,062.43 (2

Part V. Old-age....................

65,229.05

Part VIII. Maternity.................

1,718.09

Part IX. Invalidity......................

9,443.50

Part X. Survivors' benefit

16,533.90

Total financed by payments

127,667.82

19,082.55

Source: Economic and Financial Report on the Social Security Budget, Accounts and Balance Sheets of the System and Labour Statistical Bulletin of the Ministry of Employment and Social Security.

(1) Because of a change in the methodology, the figures correspond to 2014 and include income derived from unemployment (SEPE) and the Wage Guarantee Fund.

(2) In Spain there is only one contribution rate and it covers all the benefits. The contributions made by protected employees to these benefits amount to 15.062.43 million euros.

Madrid, 10 May 2017