23º REPORT ON SPAIN’S COMPLIANCE WITH THE PROVISIONS OF THE COUNCIL OF EUROPE’S EUROPEAN CODE OF SOCIAL SECURITY FOR THE PERIOD FROM 1 JULY 2017 TO 30 JUNE 2018

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 from 1 July 2017 to 30 June 2018, 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 703/2017, of 7 July, setting out the basic organizational structure of the Ministry of Employment and Social Security and amending Royal Decree 424/2016, of 11 November, establishing the basic organisational structure of the Ministries (Official State Gazette 8 July 2017).

-    Order ESS/923/2017, of 14 September, delegating and approving the delegation of powers to the administrative bodies of the Ministry of Employment and Social Security and its public institutions (Official State Gazette 2 October 2017).

-    Order ESS/1096/2017, of 13 of November, regulating the closing operations for 2017 for entities forming part of the Social Security system (Official State Gazette 14 November 2017).

-    Royal Decree 1010/2017, of 1 December, amending Royal Decree 2583/1996, of 13 December, on the organizational structure and functions of the National Institute of Social Security and partially amending the General Treasury of the Social Security system (Official State Gazette 22 December 2017).

-    Order ESS/1310/2017, of 28 December, amending the Order of 24 September 1970, providing for the application and implementation of the Social Security's Special Scheme for Self-employed and Freelance Workers (Official State Gazette 30 December 2017).

Amendment of the General Regulation on the registration and affiliation of companies, and the registration and deregistration and amendment of data of workers in the Social Security system, approved by Royal Decree 84/1996, of 26 January, implemented through Act 6/2017, of 24 October, on urgent reforms of freelance work. Pursuant to this amendment, as of 1 January 2018, any self-employed worker included in the Social Security's Special Scheme for Self-employed and Freelance Workers, or in the Social Security's Special Scheme for Maritime Workers, can register and deregister up to three times within the same year with effect from the date on which they meet the necessary requirements and conditions for inclusion in one or other of the two schemes, in the case of registrations, and from the date on which they discontinue their activity, in the case of deregistrations.

This amendment constitutes a significant reform, given that to date the law applicable to self-employed workers only allowed them to make contributions for complete months, i.e. registrations had effect from the first day of the calendar month in which the criteria determining the worker’s inclusion in the respective special scheme were met, and deregistrations took effect upon the conclusion of the last day of the calendar month in which the freelance worker discontinued their activity. In line with the aforementioned regulation on registrations and deregistrations, the regulation concerning the Social Security protection of these workers has been implemented, so that benefits accrue from the first day of the month following that in which the criteria giving rise to this entitlement are met.

The modifications in the aforementioned General Regulation on registration of companies and affiliation, registrations, cancellations and changes in the data of workers in the Social Security have made it necessary to review the contents of the Order of 24 September 1970 in relation to the economic effects of Social Security benefits: this modification enabled a correspondence between the economic effects of benefits and the date of cessation of activity.

-    Royal Decree 1078/2017, of 29 December, amending the Regulation for the Organization and Functioning of the Labour and Social Security Inspectorate, approved by Royal Decree 138/2000, of 4 February, and the General Regulation on procedures for the imposition of penalties for social security infractions and for proceedings for the settlement of Social Security contributions, approved by Royal Decree 928/1998, of 14 May (Official State Gazette 30 December 2017).

-    Order ESS/1323/2017, of 28 December, creating the registries help desk at the Office of the Comptroller General for Social Security (Official State Gazette 4 January 2018).

-    Order ESS/214/2018, of 1 March, amending Order ESS/484/2013, of 26 March, regulating the system for submitting Social Security data electronically (Official State Gazette 6 March 2018).

-    Royal Decree 192/2018, of 6 April, approving the statutes of the Labour and Social Security Inspectorate, an independent State body. (Official State Gazette 7 April 2018).

-    Royal Decree 355/2018, of 6 June, restructuring the Ministries (Official State Gazette 7 June 2018).

This law reforms the ministerial structure that existed at that date. Specifically, the Ministry of Employment and Social Security is now the Ministry of Labour, Migration and Social Security. This Ministry 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, and is structured into the following senior government bodies:

a) The State Secretariat for Migration.

b) The State Secretariat for Social Security.

B.    Benefits

-    Act 3/2017, of 27 June, on the 2017 General State Budget (Official State Gazette 28 June 2017 / Error correction: Official State Gazette 12 July 2017, Official State Gazette 11 November 2017, Official State Gazette 11 April 2018).

In general, pensions in 2017 were uprated by 0.25%, taking as a reference the legally stipulated amount at 31 December 2016.

-    Royal Decree 1079/2017, of 29 December, on uprating and supplementing civil service pensions, and on uprating Social Security system pensions and other public social benefits for 2018 (Official State Gazette 30 December 2017).

-    This law extends the 2017 General State Budget Act (Act 3/2017, of 27 June), which provided for a 0.25% increase, and therefore under the legal coverage conferred by the aforementioned extension, this same percentage shall be used for uprating purposes, i.e., at 1 January 2018 a general increase of 0.25% shall be applied to the amounts of the minimum Social Security system pensions.

This Royal Decree also includes an Annex with an updated table of the amounts of the public pensions and benefits applicable in 2018.


MINIMUM AMOUNTS OF CONTRIBUTORY PENSIONS FOR 2017

TYPE OF PENSION

BENEFICIARIES

With a dependent spouse
euros/year

Without spouse:

Single-person household
euros/year

With a non-dependent spouse
euros/year

Retirement

Beneficiary aged 65 or more

Beneficiary under 65 ………….

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

11,044.60

10,353.00

16,567.60

8,950.20

8,372.00

13,426.00

8,493.80

7,914.20

12,741.40

Permanent incapacity

Major Invalidity …………………

Absolute incapacity ……………

Total: Beneficiary aged 65 or more………………………………

Total: Beneficiary aged 60 to 64

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

Partial under the work-related accident scheme:

Beneficiary aged 65 or more

16,567.60

11,044.60


11,044.60

10,353.00



5,566.40



11,044.60

13,426.00

8,950.20


8,950.20

8,372.00



5,566.40



8,950.20

12,741.40

8,463.80


8,493.80

7,914.20



55% of the minimum contribution base under the General Scheme

8,493.80

Widowhood pensions

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

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

Beneficiary aged 60 to 64……

Beneficiary under 60…………


10,353.00



8,950.20

 8,372.00

6,778.80

Orphanhood pensions:

Per beneficiary………………………………………

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

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

2,734.20


5,381.60



6,778.80

Per beneficiary…………………………………………

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

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

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

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

2,734.20



6,609.40

6,228.60



4,044.60

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 Spanish 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:

-    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 the launch of 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)    Publication of Order SSI/366/2018, of 5 April. This Order, which introduces new product sub-types, amends Order SSI/2366/2012, of 30 October, establishing the common factor for invoicing dietary product benefits, as well as Annexes I and III of Royal Decree 1205/2010, of 24 September, stipulating the criteria for the inclusion of dietary foods for special medical purposes in the dietary product benefits of the National Health System and for establishing the maximum amounts of financing.

Changes decided, planned or proposed during the reporting period:

1)    Description and updating of the portfolio of services

-    Procedures shall be initiated to introduce a law updating Royal Decree 1030/2006, of 15 September, establishing the National Health System’s common portfolio of services and the procedure for updates thereof, as regards the following:

Basic common portfolio of care services

§  The common portfolio of services shall include optical readers and other communication systems for patients with serious neuromotor disorders, with severe upper limb impairment and who are unable to communicate orally or in writing, so that they may mitigate their communication deficiencies and isolation. To this end, the relevant protocol has been drafted to provide access to this new technology for patients who meet certain criteria.

§  The new law shall clarify that micropigmentation of the areola and of the nipple forms part of the breast reconstruction included in the National Health System's common portfolio of services, thereby guaranteeing conditions of safety and standardization for its application throughout the National Health System.

§  The common portfolio of services shall include population-based cervical screening—to date screening has been performed opportunistically—and the target age, the screening test to be performed, and the spacing between tests, shall be established.

Supplementary common portfolio:

§  The common catalogue of external prostheses shall be updated with regards to prostheses other than artificial limbs, hearing aids or replacements of the external components of diaphragmatic pacemakers. The maximum age limit for the financing of hearing aids shall be raised from 16 to 26 years.

§  Orthopaedic Prosthetics: A common catalogue of supplementary orthopaedic prosthetic benefits is being drafted, specifically in the section on external prostheses, including new types of products and extending benefits in certain cases. 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 updates thereof, regulating the procedure for supply of orthopaedic prosthetics, and determining correction coefficients. This law creates 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 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 hospitalisation 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 reporting period, 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 BENEFIT

No legal or regulatory change has occurred in this regard.

IV.   UNEMPLOYMENT BENEFIT

No significant amendments have been made to Social Security legislation relating to unemployment benefits, other than the adjustments to the increase in the minimum wage and the provisions of the 2018 General State Budget Act.

Royal Decree 1077/2017, of 29 December, raised the minimum wage for 2018, which meant an 8% increase with regard to 2016.

Pursuant to this Royal Decree, the minimum wage was set at 24.53 euros/day or 735.90 euros/month, to come into effect on 1 January 2018.

This does not affect the amount of unemployment benefits, which are associated to the Public Multi-use Income Indicator (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 551.93 euros.

The General State Budget for 2018, still pending approval, does not foresee an increase in the IPREM, therefore, the amounts of contributory benefits and of assistance benefits and other insertion programmes will remain the same.

In the case of contributory benefits, the monthly maximum and minimum amounts of benefits remain the same, as shown 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

1,098.09 euros

1 child

107% IPREM + 1/6 +

200% IPREM + 1/6

1,254.95 euros

2 or more children

671.40 €

225% IPREM + 1/6

1,411.82 €

In the case of assistance benefits—unemployment subsidy, Active Insertion Support (RAI), Activation for Employment Programme (PAE), agricultural subsidy and agricultural support—the maintenance of the IPREM means that the amount received is the same as in 2017, i.e. 80% of the IPREM, amounting 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 for 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.

This programme has not been extended, since the Constitutional Court decided, in its Rulings 153/2017 and 156/2017, that the State was not responsible for managing back-up financial assistance.

The General State Budget for 2018, which is still in the process of being approved, contains two specific measures: one to protect the unemployed, and another to promote training of workers registered with the National Youth Guarantee System:

·      A special six-month subsidy for long-term unemployed, and for those who have exhausted their entitlement to unemployment subsidies; in both cases family responsibilities are a requirement. This subsidy will be of a transitional nature, and will allow for additional protection as regards the end of the activation programmes.

Back-up financial assistance for young people registered with the National Youth Guarantee System. The objective of this assistance is to incentivize training and internship contracts, up to a limit of 540 days of assistance, which can be received for a maximum of 3 contracts.

V.        OLD-AGE BENEFIT

No legal or regulatory change has occurred in this regard.

VI.       EMPLOYMENT INJURY BENEFIT

Royal Decree 257/2018, of 4 May, amending Royal Decree 1299/2006, of 10 November, approving the table of work-related illnesses in the Social Security system and establishing criteria for notification and recording of such illnesses (Official State Gazette 5/5/2018).

VII.        FAMILY BENEFIT

Part not ratified by Spain.

VIII.        MATERNITY BENEFIT

Act 6/2017, of 24 October, on Urgent Reforms of Freelance Work (Official State Gazette 25 October 2017)

v  Final Provision Four. One amends Article 318.a) of the Consolidated Text of the General Social Security Act, approved by Royal Legislative Decree 8/2015, of 30 October, which is now worded as follows:

a) As regards maternity and paternity, the provisions of Chapters VI and VII of Title II, respectively, with the exception of Articles 179.1 and 185.

Financial benefits for maternity and for paternity shall comprise a subsidy equivalent to 100% of a regulatory base whose daily amount shall be the result of dividing, by 180, the sum of the evidenced bases of contribution to this special scheme over the six months immediately prior to the event giving rise to entitlement.

If the worker has not remained registered in the special scheme throughout the aforementioned six-month period, the regulatory base shall the result of dividing the evidenced bases of contribution to the special scheme over the six months immediately prior to the event giving rise to entitlement, by the number of days that the worker has been registered with the scheme within said period.

The periods in which the self-employed worker shall be entitled to receive the subsidies for maternity and paternity shall be the same, in duration and distribution, as the periods of leave from work for employed workers; payment of the paternity subsidy may be paid from the moment the child is born. Workers in this special scheme may also receive maternity and paternity subsidies under a part-time working day scheme, pursuant to the terms and conditions established by regulation.

The paternity benefit may be refused, cancelled or suspended for the same reasons established for the maternity benefit. The provisions of Article 179.2 shall apply to the paternity benefit."

This Final Provision amends the regulatory base for maternity and paternity benefits. Said base will no longer be equivalent to that established for the benefit for temporary incapacity arising from non-occupational contingencies. Instead, it will be the sum of the evidenced bases of contribution to the special scheme for freelance workers over the six months immediately prior to the event giving rise to the entitlement, divided by one hundred and eighty (with the exception in the new third passage added to Article 318.a) of the consolidated text of the General Social Security Act).

This Article entered into force on the first day of the second calendar month following the entry into force of the Second Final Provision, i.e. on 1 March 2018.

v  Furthermore, as regards questions relating to work-life balance, notably, amendments have been made by this law to Act 20/2007, of 11 July, on the Self-employment Statute. Article 5 amends sections 1 and 3 and adds a new section 8 to Article 30 of the Self-employment Statute Act, with the following wording:

Article 30: Bonus for self-employed workers by conciliation of professional and family life linked to hiring

“1. Workers included in the Social Security's Special Scheme for Self-employed and Freelance Workers shall be entitled, for a period of up to twelve months, to a discount of 100% on the instalment for freelance workers for non-occupational contingencies, resulting from applying, to the average base of the work for the twelve months prior to the date on which they avail themselves of this measures, the minimum contribution rate applicable at each moment, as established in the aforementioned Special Scheme, in the following cases:

a) Caring for dependent minors aged under twelve.

b) Having a dependent family member, up to the second degree of kinship or affinity, when the dependence is duly evidenced.

c) Having a family member, up to the second degree of kinship or relationship by marriage, with cerebral palsy, mental illness, or intellectual disability, whose recognized level of disability is 33% or more, or with a physical or sensory disability, whose recognized level of disability is 65% or more, provided that the disability is duly evidenced and the family member does not perform any remunerated activities.

If the worker has been registered with the Social Security's Special Scheme for Self-employed and Freelance Workers for less than 12 months, the average of the contribution base shall be calculated from the date of registration.”

"2. The application of the bonus collected in the previous section will be conditioned to the permanence in discharge in the Special Regime of the Social Security of Self-Employed Workers and to the hiring of a worker, full-time or part-time, which must be maintained throughout the period of your enjoyment. In any case, the duration of the contract must be at least 3 months from the start date of the bonus.
The hired worker will be employed in the professional activity that leads to the registration in the Social Security System of the self-employed worker.
When the employment relationship is terminated, even during the initial period of 3 months, the self-employed worker may benefit from the bonus if he hires another employee for a third party within a maximum period of 30 days.
The part-time contract can not be concluded for a working day less than 50 percent of the day of a comparable full-time worker. If the hiring is part-time, the bonus provided in section 1 of this article shall be 50 percent. "

“3. In the event of non-compliance with the provisions of the preceding section, the freelance worker shall be obliged to repay the amount of the discount received.

Repayment of the discount shall not be due when the cancellation is caused by objective reasons or for disciplinary dismissal, provided that said events are declared or recognized as legitimate. Nor shall repayment be due in cases when cancellation is caused by resignation, death, retirement or total permanent incapacity, absolute incapacity or major invalidity of the worker or by rescission during a probationary period.

If repayment is due, said repayment shall be exclusively limited to the portion of the discount received that is linked to the contract whose termination occurs in cases other than those provided for in the above paragraph.

If the hired worker is not in employment for at least 3 months from the date from which the discount is first enjoyed, the freelance worker shall be obliged to repay the amount of the discount received, unless, pursuant to the above section, another person is hired within a period of 30 days.

If the minor who gave rise to the entitlement to the discount stipulated in this Article reaches the age of 12 prior to the end of the period over which the discount is enjoyed, the worker may continue to enjoy the discount up to the stipulated maximum period of 12 months, provided that the rest of the conditions are met.

In all cases, the freelance worker who receives the discount stipulated in this Article must remain registered with Social Security for the six months following the end of the period in which the discount is received. If this condition is not met, the freelance worker shall be obliged to repay the amount of the discount received.”

“8. The provisions of the prior sections shall also apply, provided that the requirements contained therein are met, to self-employed workers included in the first contribution group of the Social Security's Special Scheme for Maritime Workers.”

The improvement comprises a discount of 100% on the instalment for freelance workers for non-occupational contingencies, resulting from applying the minimum contribution rate applicable at each moment, as stipulated in the Special Scheme, to the worker's average base for the twelve months prior to the date on which they avail themselves of this measure, for workers included in the Social Security's Special Scheme for Self-employed and Freelance Workers, for a period of up to twelve months, to care for dependent minors aged twelve or less. Prior to approval of this Act, the age applicable to this protected situation was minors aged seven or less. The requirement is for the self-employed worker to hire a worker as an employee, as a consequence of having the minor in charge.

v  The Act on Urgent Reforms of Freelance Work also establishes, in Article 6, a discount of 100% on the instalment payable by freelance workers during periods of leave for maternity, paternity, adoption, guardianship for adoption purposes, fostering, high-risk pregnancy or risks during breastfeeding (Article 38 of the Self-Employment Statute Act), amending the wording of Article 38 of Act 20/2007, of 11 July on the Self-Employment Statute, as follows:

In the case of self-employed and freelance workers included in the Social Security's Special Scheme for Self-employed and Freelance Workers, or included as self-employed workers in the first contribution group of the Social Security's Special Scheme for Maritime Workers, contributions made during the periods of leave for maternity, paternity, adoption, guardianship for the purpose of adoption, fostering, risk during pregnancy or during breastfeeding—provided that said period of leave lasts at least one month—shall be subject to a discount of 100% on the fee for freelance workers, resulting from applying the contribution rate established as obligatory, for workers included in the corresponding special Social Security scheme due to their self-employment activity, to the average base for the worker for the twelve months prior to the date on which they avail themselves of this measure.

If the worker has been registered for less than 12 months with the Social Security's Special Scheme for Self-employed and Freelance Workers, or as a self-employed worker in the first contribution group of the Social Security's Special Scheme for Maritime Workers, the average contribution base shall be calculated from the date of registration.

This discount shall be compatible with that established in Royal Decree-Law 11/1998, of 4 September.”

v  Lastly, Article 7 added a new article to the Self-employment Statute Act, namely Article 38 bis, which contains the discounts for female freelance workers who are resuming work in certain circumstances, the wording of which is as follows:

Female workers included in the Social Security's Special Scheme for Self-employed and Freelance Workers, or included as self-employed workers in the first contribution group of the Social Security's Special Scheme for Maritime Workers, who, having stopped working due to maternity, adoption, guardianship for the purpose of adoption, fostering or guardianship, pursuant to law, resume self-employed work in the two years following the date on which they stopped working, shall be entitled to a discount whereby their instalment for non-occupational contingencies, including temporary incapacity, shall be 50 euros/month for the 12 months immediately following the date they resume their work, provided that they opt to contribute the generally established minimum base for the special scheme appropriate to the self-employed activity.

Female self-employed and freelance workers who, having met the aforementioned requirements, opt for a contribution base that exceeds the minimum stipulated in the preceding paragraph, may apply a discount of 80% over the aforementioned period to the instalment for non-occupational contingencies; the instalment subject to this discount shall be that resulting from applying, to the generally established minimum contribution base for the corresponding special scheme, the minimum prevailing contribution rate at each moment; this shall include temporary incapacity.”

As a result, in the event that work activities are stopped due to maternity, adoption, guardianship for the purpose of adoption, fostering and guardianship, the female workers included in the Social Security's Special Scheme for Self-employed and Freelance Workers, or included as self-employed workers in the first contribution group of the Social Security's Special Scheme for Maritime Workers, upon resuming self-employed work in the two years following the date of which they stopped their work activities, shall be entitled to a discount whereby the instalment for non-occupational contingencies shall be 50 euros/month for the 12 months immediately following the date of resuming work.

IX.        INVALIDITY BENEFIT

No legal or regulatory change has occurred in this regard.

X.        SURVIVORS' BENEFIT

Part not ratified by Spain

XI.        FINANCING

-    Order ESS/966/2017, of 6 October, establishing the 2017 standardized contribution bases for the Social Security system, for non-occupational contingencies, in the Special Social Security Coal Mining Scheme (Official State Gazette 11 October 2017).

-    Act 6/2017, of 24 October, on Urgent Reforms of Freelance Work (Official State Gazette 25 October 2017).

This law, which we have mentioned previously, sets out measures aimed at facilitating the payment of Social Security contributions and reducing the administrative burden of freelance workers.

Firstly, it amends the surcharges for the late payment of Social Security contributions by freelance workers; if payment is made within the first calendar month following that in which the payment period elapses the surcharge is reduced to 10%. This change, in consonance with the principles guiding our Social Security model, is extended to the other subjects responsible for paying Social Security contributions included in the different schemes. Additionally, Act 6/2017 regulates the contributions of freelance workers undertaking multiple activities. With a view to reducing administrative burdens, this regulation gives joint consideration to the different contributions made by those freelance workers who simultaneously carry out another activity that includes them in another Social Security scheme.

Act 6/2017 also extends the lower contribution of 50 euros—the so-called "flat rate”—paid by new freelance workers to up to 12 months, instead of the current six months, an amendment which is considered in coordination with other already existing benefits.

Furthermore, under Act 6/2017, up to three registrations per year can take effect from the date on which the worker begins the corresponding activity and not from the first day of the month in which said activity is commenced, as has been the case thus far.

Furthermore, the number of times per year a worker can change their contribution base has been raised from two to four. In this way, the law provides for the fluctuations in income from a worker's freelance activity that are likely to occur over the course of each year.

-    Order ESS/55/2018, of 26 January, implementing the legal provisions concerning Social Security contributions, unemployment, protection for termination of activity, the Wage Guarantee Fund and vocational training for 2018 (Official State Gazette 29 January 2018).

As the 2017 General State Budget has been automatically renewed, pursuant to Article 134.4 of the Spanish Constitution, the provisions set forth in Article 106 of General State Budget Act 3/2017, of 27 June, establishing the bases and rates for Social Security contributions, unemployment, the termination of freelance workers' activity, the Wage Guarantee Fund and vocational training for 2017 should also be maintained under their current terms until the budgets for 2018 are approved. The above notwithstanding, the necessary adaptations must be made in implementation of the legal amendments in this area introduced since the publication of Act 3/2017, of 27 June, such as those included in Royal Decree-Law 14/2017, of 6 October, approving the renewal—on an exceptional basis and for a limited period—of the vocational retraining programme for individuals whose unemployment benefits have ended, or Act 6/2017, of 24 October, on Urgent Reforms of Freelance Work.

In addition, increases shall be applied in 2018 to the contribution rates for non-occupational contingencies borne by employers and employees under the Special System for Domestic Employees, as well as the contribution rate to be borne by employers for workers included in contribution groups 2 to 11 of the Special System for Agricultural Employees, in accordance with the gradual increase thereof stipulated in Transitional Provisions Sixteen and Eighteen of the consolidated text of the General Social Security Act.

­            Order ESS/55/2018 addresses this issue, implementing the legal provisions concerning social contributions for 2018. Order ESS/55/2018 not only replicates the contribution bases and rates reflected in the aforementioned legal text, including the amendments in this regard made during 2017, but furthermore, in exercise of the powers attributed by Article 148 of the consolidated text of the General Social Security Act, the general contribution bases established are adapted for the purposes of part-time contracts.

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

The contribution rate under the General Social Security Scheme for 2018 is 28.30%, of which 23.60pp shall be borne by the company and 4.70pp shall be borne by the worker. Moreover, a rate of 14.00% shall be applied to the 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.

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.

-    Order ESS/56/2018, of 26 January, establishing the 2018 Social Security contribution bases for workers included in groups two and three of the Special Maritime Employee Scheme (Official State Gazette 29 January 2018).

-    Order ESS/256/2018, of 12 March, implementing Royal Decree 231/2017, of 10 March, on the establishment of a system to reduce the contributions for occupational contingencies payable by companies that have significantly reduced accident rates in the workplace (Official State Gazette 17 March 2018).

XII.        INTERNATIONAL AGREEMENTS

-    Social Security Agreement between the Kingdom of Spain and the People's Republic of China, done in Bad Neuenahr on 19 May 2017 (Official State Gazette 16 March 2018) (Entry into force on 20 March 2018).

-    Administrative Arrangement implementing the Social Security Agreement between the Kingdom of Spain and the People's Republic of China, done in Madrid on 19 September 2017 (Official State Gazette 16 March 2018).

-    Supplementary Agreement updating the Social Security Agreement signed on 16 May 1991 between the Kingdom of Spain and the Federative Republic of Brazil, done in Madrid on 24 July 2012 (Official State Gazette 16 May 2018 / Error correction: Official State Gazette 30 May 2018) (Entry into force on 1 March 2018).

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

During the period between 1 July 2017 and 30 June 2018, there were 58 such judgments from the Labour Chambers of the High Courts of Justice of Catalonia (the majority of these judgments) and of Andalusia (much fewer). Furthermore, all of the judgments addressed the same issue: the pension increases corresponding to 2012, and the appeal against Royal Decree-Law 28/2012 of 30 November, which rescinded that increase for said year. The applicants alleged, inter alia, violations of the European Social Charter, ILO Convention No. 102, and the European Code of Social Security. The judgments are, in any case, contrary to the applicants' claims, concluding that the provisions of the aforesaid international instruments were not violated.

The list of judgments is presented below in chronological order:

1.    High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4340/2017 of 4 July. JUR 2017\260188

2.    High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4346/2017 of 4 July. JUR 2017\260207

3.    High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4350/2017 of 4 July. JUR 2017\259559

4.    High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4428/2017 of 5 July. JUR 2017\260403

5.    High Court of Andalusia (Labour Chamber, Section 1), judgment no. 2131/2017 of 6 July. JUR 2017\243376

6.    High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4480/2017 of 6 July. JUR 2017\259043

7.    High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4486/2017 of 6 July. JUR 2017\259054

8.    High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4558/2017 of 10 July. JUR 2017\260012

9.    High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4577/2017 of 10 July. JUR 2017\261042

10. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4588/2017 of 10 July. JUR 2017\261599

11. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4642/2017 of 11 July. JUR 2017\260841

12. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4696/2017 of 13 July. JUR 2017\260607

13. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4756/2017 of 14 July. JUR 2017\261213

14. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4881/2017 of 18 July. JUR 2017\261525

15. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 4897/2017 of 18 July. JUR 2017\261219

16. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5039/2017 of 25 July. JUR 2017\284951

17. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5040/2017 of 25 July. JUR 2017\284957

18. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5172/2017 of 8 September. JUR 2017\286287

19. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5177/2017 of 12 September. JUR 2017\285599

20. High Court of Andalusia (Labour Chamber, Section 1), judgment no.  2601/2017 of 20 September. JUR 2017\265089

21. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5672/2017 of 27 September. JUR 2018\3682

22. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5692/2017 of 27 September. JUR 2018\2805

23. High Court of Andalusia (Labour Chamber, Section 1), judgment no. 2539/2017 of 14 September. JUR 2017\264986

24. High Court of Andalusia (Labour Chamber, Section 1), judgment no. 2541/2017 of 14 September. JUR 2017\265076

25. High Court of Andalusia (Labour Chamber, Section 1), judgment no. 2796/2017 of 5 October. JUR 2017\302549

26. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5920/2017 of 6 October. JUR 2018\2530

27. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5933/2017 of 6 October. JUR 2018\3409

28. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5944/2017 of 6 October. JUR 2018\3145

29. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5988/2017 of 9 October. JUR 2018\3750

30. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 5989/2017 of 9 October. JUR 2018\3777

31. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 6129/2017 of 16 October. JUR 2018\3480

32. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 6200/2017 of 17 October. JUR 2018\2824

33. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 6330/2017 of 20 October. JUR 2018\2193

34. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 6468/2017 of 26 October. JUR 2018\32282

35. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 6529/2017 of 27 October. JUR 2018\33454

36. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 6821/2017 of 13 November. JUR 2018\36389

37. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 6888/2017 of 15 November. JUR 2018\73533

38. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 6924/2017 of 16 November. JUR 2018\36413

39. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 7112/2017 of 21 November. JUR 2018\72937

40. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 7130/2017 of 21 November. JUR 2018\37560

41. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 7555/2017 of 11 December. JUR 2018\82532

42. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 117/2018 of 12 January. JUR 2018\95985

43. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 152/2018 of 15 January. JUR 2018\94561

44. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 190/2018 of 15 January. JUR 2018\93166

45. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 333/2018 of 22 January. JUR 2018\96392

46. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 429/2018 of 23 January. JUR 2018\94931

47. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 681/2018 of 1 February. JUR 2018\141118

48. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 829/2018 of 9 February. JUR 2018\140919

49. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 911/2018 of 12 February. JUR 2018\143593

50. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 985/2018 of 14 February. JUR 2018\142357

51. High Court of Andalusia (Labour Chamber, Section 1), judgment no. 553/2018 of 15 February. JUR 2018\118838

52. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 990/2018 of 15 February. JUR 2018\141583

53. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 1032/2018 of 16 February. JUR 2018\142778

54. High Court of Andalusia (Labour Chamber, Section 1), judgment no. 689/2018 of 22 February. JUR 2018\118514

55. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 1506/2018 of 6 March. JUR 2018\140042

56. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 1635/2018 of 12 March. JUR 2018\139500

57. High Court of Catalonia (Labour Chamber, Section 1), judgment no. 1673/2018 of 13 March. JUR 2018\143727

Madrid, 31 July 2018


Madrid, 22 June 2018


23rd ANNUAL REPORT ON APPLICATION OF THE EUROPEAN CODE OF SOCIAL SECURITY

- Detailed report from Spain -

Report on the period ending: 31 December 2016.

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 2016, 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)…………………

46,479,360

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

46,528,024

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

99,89%

.

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


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…...………………….

14,489.1

     ii.        Under Special Schemes:

46.9

­    Special Maritime Employee Scheme……...

44.2

­    Special Coal Mining Scheme

2.7

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

14,536.0

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

14,536.0

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

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2016. Figures in thousands of workers

Article 16

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

Article 65 Title I

A.     The benefit is calculated on a daily contribution base, 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 Article 65.6.c), 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. 1          The average earnings of persons protected has been obtained from the Annual 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. 2          The base time referring to the above earnings that determines the earnings of the skilled worker corresponds to the average of earnings in 2016.

C.    The amount of the average earnings of the male skilled worker chosen: 2,371.98 euros/month, representing a yearly amount of 28,463.79 euros and a daily amount of 79.07 euros (gross earnings).

       The net earnings in the case without children are 61.53 euros/day or 1,845.88 euros/month (15.83% of personal income tax (IRPF) withheld and 6.35% of Social Security payments), for an annual amount of 22,150.52 euros.

       The net earnings in the case with 2 children are 64.22 euros/day or 1,926.52 euros/month (12.43% of personal income tax withheld and 6.35% of Social Security payments), for an annual amount of 23,118.29 euros.

Article 65. Title II.

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

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

              Calculation base: 79.07 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 12.43%) 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

47.44

38.53

Payments starting day 21

59.30

48.16

E.     He is not entitled to family allowances as his income exceeds the eligibility limit for this benefit.

F.     He is not entitled to family allowances as his income exceeds the eligibility limit for this benefit.

G.    Percentage (D)/(C).

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.

D.   Amount of benefit.

Payment period

Gross amount

euros/day

Net amount

euros/day

Days 4-20:

47.44

36.92

From day 21:

59.30

46.15

G. Percentages of the amount of benefit with respect to the base earnings:

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 earnings.

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…...………………….

14,489.1

     ii.        Under Special Schemes:

46.9

­    Special Maritime Employee Scheme……...

44.2

­    Special Coal Mining Scheme…..

2.7

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

14,536.0

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

14,536.0

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

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2016. Figures in thousands of workers

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 2016, this amount was 1,087.21 euros/month.

          For a worker with two children aged under 26 years, in 2016 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 Institute of Statistics, 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 earnings in 2016.

C.      The stated average earnings of a male skilled worker of 2,371.98 euros/month represent a yearly amount of 28,463.79 euros and a daily amount of 79.07 euros (gross earnings).

         The net earnings of a worker with 2 children are 64.22 euros/day or 1,926.52 euros/month (12.43% withheld for personal income tax and 6.35% for Social Security payments), giving an annual amount of 23,118.29 euros.

Article 65. Title II.

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

          Gross earnings of this standard worker: 2,371.98 euros/month.

          Net earnings of this standard worker: 1,926.52 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 1.660.39 euros/month and 1,185.99 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

1,286.36

From day 181:

1,185.99

1,074.51

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:

58.93%

66.77

From day 181:

50.00%

55.77

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 2017, the persons aged 65 years or older (8,822,619) amounted to 28.74% of the population aged 15 to 64 years inclusive (30,700,224), clearly exceeding the above-mentioned value of 10%.

3.   The possibility exists of flexible retirement, under 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%; at present 100% of the pension can be received provided that it is proven that there are subordinate workers).

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 2016, be 65 years and 4 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

D.   (i)Article 74. Title I

A.     Employees protected (‘000):

          viii.        Under the General Scheme…...………………

14,489.1

            ix.        Under Special Schemes:

46.9

-         Special Maritime Employee Scheme...

44.2

-         Special Coal Mining Scheme…..

2.7

             x.        TOTAL…………………………………………………...

14,536.0

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

14,536.0

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

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2016. Figures in thousands of workers

Article 28

A.   Recourse is had to Article 65.

Article 65. Title 1.

A.        The calculation base for 2016 is the average of the worker’s contribution bases for the 19 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 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.

       From 31 December 2015 onwards, when the beneficiary of the retirement pension is a woman who has had 2 or more children, whether biological or adopted, a supplement for maternity shall be applied, comprising an additional percentage on top of the pension calculated pursuant to the preceding sections. Said percentage shall be 5% in the case of two children, 10% in the case of three and 15% in the case of four or more children.

B.   The male skilled worker taken as a reference corresponds to the case described 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 persons protected are obtained from the Annual 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 earnings in 2016.

C.   The amount of the average net earnings of the male skilled worker chosen is 2,371.98 euros/month, representing a yearly amount of 28,463.79 euros (gross).

The net earnings in the case of the standard worker, with no children, are 61.53 euros/day or 1,845.88 euros/month (15.83% withheld for personal income tax and 6.35% for Social Security payments), giving an annual amount of 22,150.52 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 4 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 nineteen years applicable in 2016. The amount for the standard beneficiary is 2,052.15 euros.

        The gross amount of the pension is 1,794.81 euros/month, which in 14 monthly payments amounts to 25,127.34 euros/year, for a pension that starts on 31 December 2016.

The net amount of the pension is 21,478.85 euros/year (personal income tax withheld for a married pensioner: 14.25%).

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 earnings:

65 years and 4 months

Gross

Net

88.74

96.97

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 4 months old, since, as indicated above, the statutory retirement age in this case is 65 years and 4 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 earnings 2,371.98 euros/month or 28,463.79 euros/year.

Net average earnings: 22,150.52 euros/year.

D.   Gross annual amount of pension: 25,127.34 euros.

   Net annual amount of pension: 21,478.85 euros (personal income tax withheld: 14.52%)

G.    Pension as a percentage of the base earnings:

65 years and 4 months

Gross

Net

88.74

96.97

B.      Recourse is not had to this section.

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

Article 65. Title VI.

1.         Retirement pensions have been uprated by 0.25% 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 law, 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 2015

100.472

B.

 31 December 2016

102.049

C.

Percentage B/A

1.57

(1) Base 2016.

3.

Period considered

Retirement pension of the standard beneficiary

A. Pension at 31-12-2015

1,796.78

B. Pension at 31-12-2016

1,801.27

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 2,052.15 euros.

-     For 30 years of contributions paid and at 65 years and 4 months of age, the regulatory base is 87.46%.

     Amount of pension: 1,794.81 euros/month.

-     For 15 years of contributions paid and at 65 years and 4 months of age, the regulatory base is 50%.

-     Amount of pension: 1,026.08 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 two 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 2016 is 5,150.60 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' benefit, 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).

C.    Article 74. Title I.

A.     Employees protected:

            xi.        Under the General Scheme…...………………

14,489.1

           xii.        Under Special Schemes:

46.9

­    Special Maritime Employee Scheme……...

44.2

­    Special Coal Mining Scheme…..

2.7

                                                   xiii.TOTAL…………………………………………...

14,536.0

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

14,536.0

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

100%

Source: Ministry of Employment and Social Security

Date of information: 31 December 2016. Figures in thousands of workers.

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

A.   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 or profit sharing, bonuses and supplementary remuneration).

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 are determined by reference to the Annual 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 2016.

C.   The amount of the average earnings of the male skilled worker chosen is 2,371.98 euros/month (gross), representing a yearly amount of 28,463.79 euros.

       The net earnings in the case of a worker with two children are 64.22 euros/day or 1,926.52 euros/month (12.43% withheld for personal income tax and 6.35% for Social Security payments), giving an annual amount of 23,118.29 euros.

Article 65. Title II.

Standard beneficiary: married man with two children.

D.   Amount of benefit in the base time.

Regulatory base: 2,371.98 euros/month.

Degree of incapacity

Gross amount

Personal income tax withheld %

Net amount

Total incapacity (55% RB)

1,304.59

0

1,304.59

Total incapacity (75% RB)

1,778.99

5.73

1,677.05

Absolute incapacity

2,371.98

Exempt

2,371.98

Major incapacity

3,427.56

Exempt

3,439.37

Recourse is had to Article 57.1.

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 earnings.

Degree of incapacity

Gross

Net

Total incapacity (55% BR)

55.00%

67.72%

Total incapacity (75% BR)

75.00%

87.05%

Absolute incapacity

100.00%

123.12%

Major incapacity

145.00%

178.53%

Article 65. Title IV.

Standard beneficiary: Widow with two children.

D.   Amount of benefit in the base time: 52% or 70% of the regulatory base of the person protected, depending on the degree of compliance with the established income limits and whether there are family responsibilities. In this case, the entitlement would be to 52% of the regulatory base, as the established income limits are exceeded. It should also be noted that from 1 January 2016, a supplement for maternity of 5% of the pension is also granted (2 children).

Regulatory base of the standard person protected: 2,371.98 euros/month.

Gross amount of the widowhood pension: 1,295.10 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.

a.         Widowhood pension as a percentage of the base earnings.

Gross

Net

54.60%

65.24%

Article 65. Title V.

Standard beneficiary: employed woman with income 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: 2,371.98 euros/month.

The net salary in the above case of a beneficiary without children is 61.53 euros/day or 1,845.88 euros/month (personal income tax withheld: 15.83%; Social Security contributions: 6.35%), representing an annual amount of 22,150.52 euros.

Regulatory base: 2,371.98 euros/month.

D.   Amount of the benefit.

Degree of incapacity

Gross amount

Personal income tax withheld

Net amount

Total incapacity (55% RB)

1,304.59

5.66

1,230.75

Total incapacity (75% RB)

1,778.99

10.55

1,591.30

Absolute incapacity

2,371.98

Exempt

2,371.98

Major incapacity

3,439.37

Exempt

3,439.37

G.       Pension as a percentage of the base earnings.

Degree of incapacity

Gross

Net

Total incapacity (55% RB)

55.00%

66.68%

Total incapacity (75% RB)

75.00%

86.21%

Absolute incapacity

100.00%

128.50%

Major incapacity

145.00%

186.33%

Article 65. Title VI.

      1.   Occupational accident or illness benefits were uprated by 0.25% in 2016 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 law, 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 2015

100.472

B.

31 December 2016

102.049

C.

Percentage B/A

1.57

(1) Base 2016.

3.

Period considered

Absolute incapacity benefit (occupational accident or illness)

A. Benefit at 31-12-2015

2,380.27

B. Benefit at 31-12-2016

2,386.22

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, and who have covered at least 180 days of 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 has been applied since 1 January 2017.

       From 31 December 2015, when a beneficiary of a retirement, incapacity or widowhood is a woman who has had 2 or more children, whether biological or adopted, a supplement for maternity shall be applied, comprising an additional percentage on top of the pension. Said percentage shall be 5% in the case of two children, 10% in the case of three and 15% in the case of four or more children.

C. (i) Article 74. Title I.

Men

Women

Total

A. Number of protected employees (‘000):

 i. Under the General Scheme

7,379.3

7,109.8

14,489.1

 ii. Under Special Schemes:

41.7

5.1

46.9

 - Special Maritime Employee Scheme

39.2

4.9

44.2

 - Special Coal Mining Scheme

2.5

0.2

2.7

 iii. TOTAL

7,421.1

7,114.9

14,536.0

B. Total number of employees

7,421.1

7,114.9

14,536.0

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 2016. Figures in thousands of workers.

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 65.6.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 are obtained from the Annual 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 2016.

C.        The amount of the average earnings of the standard male skilled worker is 2,371.98 euros/month, representing a yearly amount of 28,463.79 euros and a daily amount of 79.07 euros.

            The net earnings in the case of a worker with two children are 64.22 euros/day or 1,926.52 euros/month (12.43% withheld for personal income tax and 6.35% for Social Security payments), giving an annual amount of 23,118.29 euros.

       Article 65. Title V.

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

D.   Amount of the benefit.

Gross amount

Net amount

79.07 euros/day

64.22 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 68d).


PART IX

INVALIDITY BENEFIT

Article 54

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

-            Total permanent incapacity to perform the usual occupation. 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:

          xiv.        Under the General Scheme…...……………….

14,489.1

           xv.        Under Special Schemes:

46.9

­    Special Maritime Employee Scheme……...

44.2

­    Special Coal Mining Scheme

2.7

            xvi.TOTAL………………………………………………...

14,536.0

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

14,536.0

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 2016. Figures in thousands of workers.

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 years, 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).

·           In the case of benefits accrued subsequent to 31 December 2015, when the beneficiary of the incapacity pension is a woman who has had two or more children, whether biological or adopted, a supplement for maternity shall be applied, comprising an additional percentage on top of the pension. Said percentage shall be 5% in the case of two children, 10% in the case of three and 15% in the case of four or more children.

B.      The male skilled worker taken as a standard is the one included in Article 65.6.(c): 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 Annual 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 2016.

C.      Gross average earnings of the skilled manual male employee chosen: 2,371.98 euros/month, representing a yearly amount of 28,463.79 euros.

          The net earnings in the case of a childless worker total 61.53 euros/day or 1,845.88 euros/month (15.83% of personal income tax withheld and 6.35% Social Security payments), representing an annual amount of 22,150.52 euros.

          The net earnings for a man with 2 children are 64.22 euros/day or 1,926.52 euros/month (12.43% of personal income tax withheld and 6.35% of Social Security payments), representing an annual amount of 23,118.29 euros.

Article 65. Title II.

Standard beneficiary: man with wife and two 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 2,082.42 euros/month.

Degree of incapacity

Gross annual amount

% personal income tax withheld

Netannual amount

Total Incapacity (55% RB)

16,034.60

0

16,034.60

Total Incapacity (75% RB)

21,865.36

6.16

20,518.46

Absolute Incapacity

29,153.82

Exempt

29,153.82

Major Invalidity

42,273.04

Exempt

42,273.04

-            Due to accident not related to work. Regulatory base 2,036.06 euros/month.

Degree of incapacity

Gross annual amount

% personal income tax withheld

Net annual amount

Total Incapacity (55% RB)

15,677.69

0

15,677.69

Total Incapacity (75% RB)

21,378.67

5.75

20,149.40

Absolute Incapacity

28,504.89

Exempt

28,504.89

Major Invalidity

41,332.10

Exempt

41,332.10

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 earnings, in the case of non-occupational illness:

Degree of incapacity

Gross

Net

Total Incapacity (55% RB)

56.33

69.36

Total Incapacity (75% RB)

76.82

88.75

Absolute Incapacity

102.42

126.11

Major Invalidity

148.52

182.86

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

Degree of incapacity

Gross

Net

Total Incapacity (55% RB)

55.08

67.82

Total Incapacity (75% RB)

75.11

87.16

Absolute Incapacity

100.14

123.30

Major Invalidity

145.21

178.79

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 earnings 2,371.98 euros/month, or 28,463.79 euros/year.

Amount of net earnings (in the case without children): 1,845.88 euros/month or 22.150.52 euros/year.

D.      Amount of the benefit

-      For non-occupational illness. Regulatory base: 2,082.42 euros.

Degree of incapacity

Gross

annual amount

% personal income tax withheld

Net

annual amount

Total Incapacity (55% RB)

16,034.60

6.09

15,058.09

Total Incapacity (75% RB)

21,865.36

10.86

19,490.79

Absolute Incapacity

29,153.82

Exempt

29,153.82

Major Invalidity

42,273.04

Exempt

42,273.04

-      Incapacity due to accident not related to work. Regulatory base: 2,036.89 euros/month.

Degree of incapacity

Gross annual amount

% personal income tax withheld

Net annual amount

Total Incapacity (55% RB)

15,677.69

5.68

14,787.20

Total Incapacity (75% RB)

21,378.67

10.57

19,118.94

Absolute Incapacity

28,504.89

Exempt

28,504.89

Major Invalidity

41,332.10

Exempt

41,332.10

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

Degree of incapacity

Gross

Net

Total Incapacity (55% RB)

56.33

67.98

Total Incapacity (75% RB)

76.82

87.99

Absolute Incapacity

102.42

131.62

Major Invalidity

148.52

190.84

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

Degree of incapacity

Gross

Net

Total Incapacity (55% RB)

55.08

66.76

Total Incapacity (75% RB)

75.11

86.31

Absolute Incapacity

100.14

128.69

Major Invalidity

145.21

186.60

B.      Recourse has not been had to this paragraph.

C.      Recourse has been had to Article 65 for uprating invalidity benefits.

          Article 65. Title VI.

1.       In 2016, permanent incapacity 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 (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 0.50pp. 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 2015

100.472

B.

31 December 2016

102.049

C.

Percentage B/A

1.57

(1)  2016 base.

3.

Period

considered

Absolute Incapacity Pension

(non-occupational illness)

Absolute Incapacity Pension

(accident not related to work)

A. Pension at 31/12/2015

2,090.02

2,028.57

B. Pension at 31/12/2016

2,095.25

2,033.64

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 2016 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 five years, of which two 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 (5,150.6 euros in 2016).

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 review identifies a recovery.


PART XII

COMMON PROVISIONS

Article 70

The content of this Appendix refers to compliance with the provisions of Part XIII (Common Provisions), Article 71 of the report on Convention No. 102 on Social Security (Minimum Standards). The figures correspond to 2016, 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 Decision 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 Decision, 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 2016 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 2016 the maximum limit was 3,642 euros/month and the minimum 764.4 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 2016 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) ......

25,117.40

4,192.71

Part III. Temporary Incapacity.

5,265.29


15,537.26 (2)

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

67,977.01

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

1,699.49

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

9,605.36

Part X. Survivors' benefit

16,890.64

Total financed by payments

126,555.19

19,729.97

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 2015 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 15.537.26 million euros.

Madrid, 31 July 2018


COMPLEMENTARY INFORMATION TO THE REPORT ON SPAIN’S COMPLIANCE WITH THE PROVISIONS OF THE COUNCIL OF EUROPE’S EUROPEAN CODE OF SOCIAL SECURITY FOR THE PERIOD FROM 1 JULY 2017 TO 30 JUNE 2018

In accordance with Article 74 of the European Code of Social Security, the Council of Europe has  invited Spain in the Revised draft Resolution of  the Governmental Committee of the European Social Charter and the European Code of Social Security, of 11 June 2018, to complete information regarding art. 34, 35, and 69 of the Code.

With this report we want to provide the requested information

I.          Part VI (Employment injury benefit), Article 34 of the Code,Medical care benefits, to confirm in its next report, on the basis of concrete provisions of the national legislation, that a common portfolio of the National Health System includes all types of medical care benefits guaranteed by Article 34 of the Code in case of employment injury;

Ø   Benefits for occupational accidents or occupational diseases:

§    Concept or definition

Concept of occupational accident for employees (Art. 156 TRLGSS):

-      An occupational accident is considered to be any bodily harm suffered by a worker in connection with or as a consequence of work carried out while employed by another person.

-      Occupational accidents are considered to include:

a)      Those suffered by a worker while going to or returning from their workplace.

b)      Those suffered by a worker during or as a consequence of carrying out elective posts related to trade unions, as well as those occurring while going to or returning from the place where said duties are carried out.

c)      Those that occur during or as a consequence of tasks which, although different from those of a worker’s professional group, are carried out by the worker in compliance with orders from their employer, or spontaneously in the interests of the proper functioning of the company.

d)      Those occurring during acts of rescue and others of an analogous nature, when they are work-related.

e)      Diseases which, although not occupational diseases, are contracted by the worker in relation to carrying out their work, as long as it is proven that the disease was contracted exclusively thereby.

f)       The diseases or defects previously suffered by the worker which are aggravated as the consequence of an injury caused by the accident.

g)      The consequences of the accident that are modified in their nature, duration, severity or termination by intercurrent diseases, which constitute complications derived from the pathological process determined by the accident itself or have their origin in conditions acquired in the new environment in which the patient was situated to cure it.

-        It is presumed, unless there is evidence to the contrary, that injuries suffered by the worker during working hours and in the workplace constitute occupational accidents.

-        Notwithstanding the provisions of the previous paragraphs, the following are not considered occupational accidents:

a)    Those due to force majeure extraneous to work, understood as being of such a nature that they have no relationship whatsoever to the work being done when the accident occurred.

In no case shall such phenomena as sunstroke, lightning, or similar natural events be considered force majeure extraneous to work.

b) Those due to wilful intent or gross negligence on the part of the injured worker.

-        The following shall not prevent an accident from being considered an occupational accident:

a) Professional negligence resulting from habitually carrying out a job and derived from the confidence such experience inspires.

b)    The concurrence of the civil or criminal liability of the employer or a colleague of the injured worker, or of a third party, unless entirely unrelated to the work of the individual concerned.

Concept of occupational accident for self-employed persons (Art. 316.2 TRLGSS):

An occupational accident of a self-employed person is understood to result directly and immediately from self-employed work, thus determining its inclusion in the scope of application of this special scheme.

Any accident occurring while going to or returning from the place where the economic or professional activity takes place is also understood to be an occupational accident. For this purpose, the place where the activity takes place is understood to be the establishment where a self-employed person habitually carries out their activity, provided that it is not also their place of residence, and consists of the industrial, commercial or office premises declared as linked to their economic activity for tax purposes (amendment incorporated through Art. 14 of Act 6/2017, of 24 October, on urgent reforms to self-employed work, which entered into force on 26 October 2017).

Concept of occupational disease for employees (Art. 157 TRLGSS):

An occupational disease is understood to be that contracted as a result of salaried work involving any of the activities specified in the table approved by the implementing provisions of the TRLGSS, and that is caused by the action of the elements or substances listed in said table for each occupational disease. The table of occupational diseases is included in an Annex to Royal Decree 1299/2006, of 10 November, which approved the table of occupational diseases in the Social Security system and stipulated criteria for their notification and registration.

Concept of occupational disease for self-employed persons (Art. 316.2 TRLGSS):

An occupational disease is understood to be that contracted as a result of self-employed work and which is caused by the action of the elements or substances set forth in the table of occupational diseases featuring the list of the principal activities that may cause them, in an Annex to Royal Decree 1299/2006, of 10 November.

§     Healthcare coverage in these cases:

The range and scope of the healthcare to which people insured under Spain’s public health system are entitled do not depend on the contingency giving rise to it.

Royal Decree 1192/2012, of 3 August, which sets forth the status of insured persons and beneficiaries for the purpose of healthcare in Spain provided with public funds through Spain’s NHS, repealed Art. 11 of Decree 2766/1967, of 16 November, on healthcare coverage and organization of medical services in the General Social Security Scheme, which regulated the contents of the healthcare provided for occupational accidents or occupational diseases, stating that such healthcare should be provided to workers in the most comprehensive manner.

Said repeal means that the range of healthcare does not vary depending on the contingency, pursuant to Additional Provision Six of General Public Health Act 33/2011.

Consequently, special healthcare is not provided for; the NHS’s common portfolio of services and, where appropriate, the supplementary services provided by the relevant Autonomous Community, is what determines said range (Act 16/2003, of 28 May, Royal Decree 1030/2006, of 15 September, which set forth the NHS’s common portfolio of services and the procedure for its updating, and Royal Decree 1506/2012, of 2 November, which regulates the NHS’s supplementary common portfolio of ortho-prosthetic benefits and sets forth the bases for establishing the maximum amounts of funding for ortho-prosthetic benefits).

However, there are certain specificities:

-        Persons receiving treatment for occupational accidents or occupational diseases are exempt from paying for any part of their pharmaceutical expenses (Art. 102.8e of Royal Decree-Law 1/2015, of 24 July, which approved the Consolidated Text of the Act on guarantees and rational use of medication and medical devices).

-        Persons requiring treatment for occupational accidents or occupational diseases are exempt from paying for any ortho-prosthetic expenses, although these will be financed by the corresponding mutual company collaborating with the Social Security, by the National Social Security Institute, or by the Social Institute for Mariners (Art. 9.4f of Royal Decree 1506/2012, of 2 November).

-        Beneficiaries of healthcare for occupational accidents or occupational diseases are entitled to be refunded, by the managing entity or mutual company collaborating with the Social Security which covers said contingencies, for the cost of the necessary transportation to receive healthcare. This refers to ordinary means of transportation, including taxis when their use is prescribed by the corresponding physician for medical reasons, or authorized by the corresponding managing or collaborating entity when there are no other means of transportation, under the terms and conditions and to the extent set forth in the instructions issued for this purpose (Order TIN 971/2009, of 16 April, which sets forth compensation for transportation expenses in cases of healthcare for occupational risks and appointments to undergo medical tests or examinations).

II.         Article 35 of the Code, Prevention, rehabilitation and placement services, to explain in detail in its next report what measures are taken in practice to re-establish persons with disabilities in suitable work and to provide statistical data illustrating the effectiveness of these measures

The rehabilitation measures applied at the treatment centres of mutual societies that collaborate with the Social Security service are governed by principles of effectiveness grounded in scientific evidence and the excellent training and experience of their professionals.

Rehabilitation measures play an important role within each mutual society’s healthcare management system for patients affected by a professional contingency. Each mutual society allocates a significant portion of its economic resources for such patients to attempting to reduce the duration of the healing process and to lessen the seriousness of their pathology and consequent incapacity, as well as to reorienting workers towards jobs that are compatible with their disabilities.

In addition to the clinical criteria, from the perspective of both the prescription and the undertaking of the rehabilitation treatment, several specific rehabilitation procedures and techniques can be highlighted.

RECOVERY MEASURES AND THERAPIES

Specifically, the therapies applied by mutual societies are carried out by:

-       Scheduling rehabilitation sessions following the clinical practice guides prepared by the mutual societies.

-       Making an early start on the rehabilitation prescribed by the physician, insofar as the patient's clinical evolution allows.

-       Providing rehabilitation to users for whom recovery is possible, enabling them to maintain their occupational and daily activities.

-       Following assessment and treatment protocols to decrease variability.

-       Undertaking training plans aimed at establishing common therapeutic strategies and incorporating new techniques into the physiotherapy services, incorporating clinical criteria and scientific evidence as strong points.

-       Detecting adverse events to reinforce training where necessary and guarantee the patient's health.

-       Using Information and Communications Technology (ICT) to guide home treatment and empower the patient to avoid relapses.

The mutual societies' rehabilitation services apply different techniques, including: physical therapies, hydrotherapy, kinesitherapy, proprioception, strengthening and occupational therapy techniques.

üPhysical therapies:

      Thermotherapy (radio wave therapy, infrared rays, hot packs, paraffin)

      Cryotherapy

      Electro-stimulation

      Electroanalgesia

      Laser therapy

      Shock waves

      Electrotherapy techniques

o  

    Infrared laser therapy (point-by-point, HeNe laser using the sweeping method)

o  

    Intratissue Percutaneous Electrolysis (EPI)

o  

    Microwave

o  

    Short wave

o  

    Magnetotherapy

o  

    EMG biofeedback contact

o  

    Electrotherapy (excito-motor, analgesic/anti-inflammatory)

o  

    Electrotherapy (interferential current therapy, diadynamic therapy)

o  

    Transcutaneous Electrical Nerve Stimulation (TENS) (symmetrical, asymmetrical)

o  

    Trabert

o  

    Kotz

o  

    Triangular pulses

o  

    Square pulses

o  

    Galvanic

o  

    Tonolysis

o  

    Ultrasound

o  

    Infrared

o  

    Iontophoresis

o  

    Hyperthermia

o  

    Shock waves

o  

    Pressotherapy

o  

    Self-Controlled Energo-Neuro Adaptive Regulator (SCENAR)

ü  Hydrotherapy techniques:

      Contrast

      Contrast hand or foot baths

      Whirlpool

      Hubbard tank

      Underwater massage

      Hydrokinesitherapy

      Paraffin

      Parafango

      Crushed ice

      Underwater bicycle

ü  Manual and kinesitherapy techniques:

        Therapeutic exercise

        Manual traction

        Passive mobilization

        Active assisted mobilization

        Myofascial technique

        Pulley therapy (upper extremities, lower extremities)

        Force plate gait rehabilitation

        Force plate gait analysis

        Manual lymphatic drainage

        Vestibular rehabilitation

        Mechanotherapy (upper extremities, lower extremities)

        Proprioception

        Vibratory neurostimulation

        Active toning (with and without resistance)

        Walking rehabilitation (parallel bars, treadmill, anti-gravity treadmill)

        Transfer rehabilitation

        Retraining in going up and down stairs

        Retraining in standing on an inclined plane

        Passive kinesitherapy (CPM machine, induced)

        Active kinesitherapy (assisted, non-weight-bearing, assisted non-weight-bearing)

        Active kinesitherapy with resistance (isotonics, isokinetics, isometrics)

        Individual or group Pilates

        Constraint induced movement therapy

        Passive or active stretching

        CPM machine

        Isokinetics (strengthening + assessment)

        Isokinetic testing

        Isokinetic strengthening

        Antispasticity

        Articular correction

        Drainage

        Desensitization

        Stimulation

        Massage therapy (analgesic, scar, deep transverse)

        Sitting training

        Breathing re-education

      Suspension therapy

      Walking training

      Williams exercises

      Spinal manipulative therapy

      Specific manual technique (upper extremities, lower extremities)

      Neuromuscular taping

      Self-Controlled Energo-Neuro Adaptive Regulator (SCENAR)

      Eccentric training

      Postural retraining/correction

      Relaxation technique

      Group back treatment

      Delivery of recommendations and/or exercises to do at home

      Dry needling

      Neurodynamics

      Diacutaneous fibrolysis

      Diathermy

      Global stimulation

      Postural drainage

      Functional bandaging

      Elastic bandaging

      Compression bandaging

      Reducing bandaging

      Conforming bandaging

      Stump bandaging

      Shoulder pulleys

      Stretching exercises

      Cold pack

      Hot pack

      Resting of joints

      Traction (cervical, lumbar)

      Flow cryotherapy

ü  Proprioception:

      Coordination techniques

      Plyometrics

      Balance

ü  Strengthening:

      Without resistance

      With resistance: isometric, isotonic, concentric, eccentric exercises

      Kinetic chain

      Aerobic training

ü  Occupational Therapy Techniques:

      Orthesis

      Prosthetic training

      Activities of Daily Living (ADLs)

      Basic Activities of Daily Living (BADLs)

      Instrumental Activities of Daily Living (IADLs)

      Therapy (cognitive, functional, sensory, educational, recreational)

      Cognitive stimulation

      Occupational activities

      Memory workshops

      Play therapy

      Changing dominance

      Occupational therapy

      Ergonomics

      Support material

      Training in the use of AT

      Wheelchair usage

      Work on standing frame

      Multisensory stimulation

      Alternative communication

      Pre-prosthetic training

      Postural retraining/correction

      Mirror therapy

      Transfer training

      Retraining in standing

      Activities with gaming consoles

      Psychological support.

In addition to the above-mentioned rehabilitation techniques, the mutual societies employ other rehabilitation and re-adaptation measures aimed at reintegrating patients into the workforce.

These include, in particular:

-       Face-to-face and on-line courses for workers who have had an occupational accident or who suffer from an occupational disease.

-       Training provided by multidisciplinary teams—comprising a senior occupational health and safety specialist, a physiotherapist, and a physician—which provide training to the workforce covered by mutual societies.

-       Employability classes.

-       Individual training and employability plans or programmes.

-       Assistance for entrepreneurship.

-       Personal interviews providing support and follow-up.

STATISTICAL DATA ON THE EFFECTIVENESS OF THE REHABILITATION TECHNIQUES

A.      SECTOR DATA

Given the widely disparate information available, there is currently little sector-wide data available on the effectiveness of different rehabilitation techniques. Nevertheless, the following can be noted:


In 2016 a total of 1,289,119 occupational accidents were recorded, of which 43% were without sick leave, and 57% with sick leave.

Details are provided below of the rehabilitation healthcare for occupational contingencies provided by the entire mutual societies sector.

REHABILITATION HEALTHCARE FOR OCCUPATIONAL CONTINGENCIES PROVIDE BY THE  MUTUAL SOCIETIES SECTOR (2016)

TOTAL OUTPATIENT HEALTHCARE.

5,180,763

TOTAL HOSPITAL CARE

   160,677

TOTAL

5,341,440

B.      INDIVIDUAL CASES

Presented below are certain figures on the effectiveness of these measures, based on the examples of rehabilitation techniques and measures submitted by the different mutual societies. However, given the disparate nature of the data available, it is not possible to extrapolate the results to the sector as a whole.

-        EXAMPLE 1. EFFECTS OF REHABILITATION ON THE FINAL DEGREE OF DISABILITY

Presented below are the data provided by one mutual society reflecting the final outcome of the rehabilitation treatment given in cases in which the occupational accident or disease resulted in disability. These results therefore show the impact of the rehabilitation treatment in terms of decreasing the final degree of disability.

Cases of disability in which rehabilitation treatment was provided 2016

Initial assessment

Total number of cases

% in which rehabilitation treatment was provided

Effectiveness of rehabilitation treatment

Absolute

14

5

100%

64.29%

Total

135

86

100%

36.30%

Partial

44

18

100%

59.09%

2017

Initial assessment

Total number of cases

% in which rehabilitation treatment was provided

Effectiveness of the rehabilitation treatment

Absolute

15

5

100%

66.66%

Total

140

68

100%

51.43%

Partial

45

14

100%

68.89%

-        EXAMPLE 2. REHABILITATION SESSIONS PER PATIENT

According to partial data provided by some mutual societies, it can be said that of the total number of occupational accidents (both in 2016 and 2017), in 23% of cases the worker was offered rehabilitation treatment, with the average number of rehabilitation sessions per person amounting to approximately 18.

-        EXAMPLE 3. VOCATIONAL REHABILITATION

As regards other vocational rehabilitation measures, it should be noted that (for 2016) the proportion of individuals who had access to the job market after completing the different training and employability programmes offered by the mutual societies that submitted information appears to stand at approximately 45%.

The data provided by several mutual societies include details, for example, on the different vocational rehabilitation courses carried out in 2016 and 2017.

-       During 2016 training was provided to 338 individuals distributed throughout Spain (data corresponding to six mutual societies), with the number of people who benefited from such training courses in these mutual societies rising to 509 in 2017.

-       The breakdown of vocational rehabilitation trainees by area is as follows:

§   Telephone assistance

§   Quality

§   Aluminium carpentry

§   Accounting

§   Graphic design

§   Cabinetmaking and restoration

§   IT

§   Administrative management

§   Floristry/Landscaping

§   Mechanics

§   Shoemaking

-     Also noteworthy are the remunerated training internships in companies, and self-employment workshops.

III.        Part XII (Common provisions), Article 69, Right of complaint and appeal, to explain in detail in its next report, with reference to the relevant provisions of national laws and regulations, the procedure of complaint and appeal with respect to Part II (Medical care) and Part III (Sickness benefit);

Ø    Medical care :Applicants’ right to present complaints and appeals

Recognition of being insured (having the right to receive healthcare) shall be afforded automatically to workers, pensioners, or recipients of periodic benefits, and persons who exhaust their unemployment benefits or payments whilst still unemployed. Furthermore, recognition of this right is automatic for those over 26 years old who, upon attaining that age, lose their status as beneficiaries, with this group being entitled to healthcare by virtue of their condition as residents of Spain.

In the event that recognition of the entitlement is requested by the interested party, the Provincial Office of the INSS (Spanish National Social Security Institute) or, where applicable, the Social Institute for Mariners, shall issue a specific decision—to be communicated within 30 days, counting from the day following receipt of the request—regarding the recognition or denial of the status of beneficiary or insured individual.

After the 30-day period referred to in the previous paragraph, if no express decision has been issued and communicated, the request shall be understood to have been denied, pursuant to Art. 129.3 of the Consolidated Text of the General Social Security Act (Spanish acronym TRLGSS), approved by Royal Legislative Decree 8/2015, of 30 October.

Decisions, whether expressly stated or implied, of the managing entity may be appealed in the manner set forth in Art. 71 of Act 36/2011, of 10 October, on the regulation of labour jurisdictions.

In other words, a preliminary appeal may be brought before the competent body that handed down the decision regarding the interested party’s initial application, within 30 days of the communication of said decision, if it is expressly stated, or from the date upon which administrative non-response is understood to have come into effect.

Once the preliminary appeal is formalized, the managing entity must issue an express response within 45 days. If not, the appeal shall be understood to have been denied, due to administrative non-response.

A complaint must be formalized before the labour courts within 30 days, counted from the date of notification of denial of the preliminary appeal, or from the date on which administrative non-response is understood to have come into effect.

Ø    Sickness benefitor Illness-temporary incapacity benefit: applicants’ right to lodge complaints and appeals.

Possibilities of requesting a review or appeal regarding all benefits:

-               1. First, a review can be requested: Beneficiaries and those who have received benefits, although they are not currently beneficiaries, may request a review of the decision thereon by the Social Security’s managing entity.

-               2. Secondly, a preliminary appeal can be lodged:

The preliminary appeal is the last phase of the administrative procedure of management of Social Security benefits. It is regulated in Art. 69 -73 and 140 of Act 36/2011, of 10 October, on the regulation of labour courts (Spanish acronym LJS).

The preliminary appeal is a necessary prerequisite for filing a complaint before a labour court (Art. 71.1 and 140 LJS) and its main purpose is to notify the body that handed down the decision of the content and merits of the request, offering the possibility of directly resolving the dispute and thereby avoiding a court proceeding.

Legal standing:Those entitled to lodge a preliminary appeal are those who have initiated the proceeding in question or whose rights are affected by a decision (e.g. mutuals, companies), or their representatives.

-               3. A complaint may be lodged before a labour court.

A special characteristic of appeals against temporary incapacity decisions aimed at facilitating and accelerating the proceedings to the benefit of the interested parties:

-               In temporary incapacity proceedings, the presentation of a preliminary appeal is not a prerequisite when the appeal relates to express administrative decisions agreeing to a medical discharge after the end of the 365-day limit for temporary incapacity benefits.  In these cases, a dissent may be filed pursuant to Art. 170.2 TRLGSS, Royal Legislative Decree 8/2015, of 30 October. This procedure ensures a rapid response to the interested party.

-               In temporary incapacity proceedings, a discrepancy may arise regarding the origin of the medical leave, since the economic impact of the benefit varies according to whether the medical leave originates from common contingencies or occupational contingencies. Art. 3 of Royal Decree 625/2017, of 18 July, sets forth the rules for resolving disputes regarding the determination of the kind of contingency in temporary incapacity proceedings. This procedure ensures a rapid response to the interested party.

Madrid, 31 of July 2018