The Council of Europe has requested, in accordance with Article 74 of the European Code of Social Security, that the report for the period from 1 July 2019 to 30 June 2020 be submitted on Spain’s compliance with the contents of the above-mentioned international instrument.

To this end, the following are the regulatory changes made to our legislation during the period indicated and which comply with the content of the above-mentioned European Code of Social Security.

Annex containing the economic and statistical data is attached.

 I.   GENERAL ASPECTS

A.  Administration/Organisation.

-         Order TMS/1114/2019 of 12 November, regulating the closure of the financial year 2019 for the entities that make up the social security system (BOE 13-11-2020).

https: //www.boe.es/boe/dias/2019/11/13/pdfs/BOE-A-2019-16224.pdf

-         Royal Decree-Law 16/2019, of 18 November, adopting measures relating to the implementation of the social security budget (BOE 19-11-2019).

https: //boe.es/boe/dias/2019/11/19/pdfs/BOE-A-2019-16562.pdf

-         Royal Decree 2/2020, of 12 January, restructuring the ministerial departments (BOE 13-1-2020).

https: //www.boe.es/boe/dias/2020/01/13/pdfs/BOE-A-2020-410.pdf

-         Royal Decree 139/2020 of 28 January establishing the basic organizational structure of ministerial departments (BOE 29-1-2020).

https: //www.boe.es/boe/dias/2020/01/29/pdfs/BOE-A-2020-1246.pdf

-         Royal Decree 496/2020 of 28 April amending Royal Decree 1314/1984 of 20 June, regulating the structure and powers of the General Social Security Treasury, and Royal Decree 2583/1996 of 13 December on the organizational structure and functions of the National Social Security Institute and the partial modification of the General Social Security Treasury (BOE 1-5-2020)

https: //boe.es/boe/dias/2020/05/01/pdfs/BOE-A-2020-4762.pdf

-         Royal Decree 497/2020, of 28 April, developing the basic organizational structure of the Ministry of Inclusion, Social Security and Migration (BOE 1-5-2020).

https: //boe.es/boe/dias/2020/05/01/pdfs/BOE-A-2020-4763.pdf

-         Royal Decree-Law 13/2020 of 7 April adopting certain urgent measures in the field of agricultural employment (BOE 8-4-2020).

https: //www.boe.es/boe/dias/2020/04/08/pdfs/BOE-A-2020-4332.pdf

This rule adopts simplification measures for the processing of the procedures of social security institutions as a result of the declaration of a state of alarm.

-         Royal Decree-Law 15/2020 of 21 April on supplementary urgent measures to support the economy and employment (BOE 22-4-2020).

https: //boe.es/boe/dias/2020/04/22/

This regulation, owing to the allocation of powers provided for in Royal Decree 2/2020 of 12 January, which restructures the ministerial departments, the organisation of the new Ministry of Inclusion, Social Security and Migration, deals with some policy changes in order to give effect to the integration of the Passive Class Regime[1] into the aforementioned Ministry.

Immediately and once the Royal Decree on the structure of the Ministry of Inclusion, Social Security and Migration has been adopted, steps will be initiated for the adaptation of administrative, accounting, budgetary and financial management to enable the management of the benefits of the Passive Class Regime by the National Social Security Institute.

As long as this adaptation process is not completed, this management will be carried out by the Directorate-General for Social Security Management. Until that date, any reference in the consolidated text of the Act on State Passive Classes to the National Social Security Institute shall be construed as referring to the Directorate-General for Social Security Management.

In addition, until management is taken over by the National Social Security Institute, it will be up to the Directorate-General for Social Security Management to approve and commit the expenditure, as well as to recognise the obligations and proposals for pension payments under the State Passive Class Regime, as well as to make the corresponding payments by the State Authorising Officer-General for Payments.

The State shall transfer to the Social Security the amount necessary for the financing of the total expenditure incurred by the National Social Security Institute, the General Social Security Treasury, the General Social Security Intervention, the Social Security Information Management and the Legal Service of the Social Security Administration for the management of the State Passive Classes Regime.

Similarly, as a result of the assumption of the State Passive Class Regimen by the National Social Security Institute and the assumption of the functions assigned to the Directorate-General for Social Security Management for this purpose, it is necessary for this Directorate-General to provide legal assistance from the Legal Service of the Social Security Administration.

To this end, the legal assistance to be provided shall include both advice and representation and defence in the case of passive classes and other benefits, as well as legal assistance in matters affecting the interests of the managing bodies and common social security services under the terms determined by the State Secretariat for Social Security and Pensions.

In addition, this regulation provides for the suspension of time limits within the scope of the Labour and Social Security Inspectorate.

The period of validity of the state of alarm declared by Royal Decree 463/2020 of 14 March, which declares the state of alarm for the management of the health crisis situation caused by COVID-19, as well as its possible extensions, shall not count for the duration of the verification proceedings of the Labour and Social Security Inspectorate.

It shall also not count such a period within the time limits set by officials of the Labour and Social Security Inspection System for compliance with any requirements.

Exceptions to the provisions of the preceding paragraph are those verification proceedings and the requirements and orders for paralysis arising from situations closely linked to the facts justifying the state of alarm, or those which, because of their seriousness or urgency, are indispensable for the protection of the general interest, in which case it shall be duly justified, giving the person concerned such reasons.

During the period of validity of the state of alarm, declared by Royal Decree 463/2020 of 14 March and its possible extensions, the limitation periods for actions are suspended to demand liability for compliance with social and social security regulations.

All the time limits relating to the procedures laid down in the General Regulation on procedures for the imposition of penalties for social offences and for the settlement of social security quotas, approved by Royal Decree 928/1998 of 14 May, are affected by the suspension of administrative periods provided for in the third additional provision of Royal Decree 463/2020 of 14 March.

Finally, amendments are made to the offences defined in articles 23 and 43 of the consolidated text of the Law on Offences and Sanctions in the Social Order, approved by Royal Legislative Decree 5/2000 of 4 August.

B.  Benefits.

-         Royal Decree-Law 18/2019 of 27 December adopting certain measures in tax, cadastral and social security matters (BOE 28-12-2019).

https: //www.boe.es/boe/dias/2019/12/28/pdfs/BOE-A-2019-18611.pdf

In the area of social security, the revaluation of pensions is a matter of utmost relevance to pensioners and, as such, a right recognised in Article 50 of our Constitution.

The Government’s intention is to comply with the commitment made and communicated to the European Commission in the 2020 budgetary plan of the Kingdom of Spain, guaranteeing the maintenance of the purchasing power of pensioners in the next financial year through an update of pensions of 0.9 % since 1 January 2020.

However, being in office in accordance with article 21 of Law 50/1997, of 27 November, of the Government, and in particular in view of the impossibility of adopting the Draft Law on General State Budgets for the financial year 2020, it is inevitable in the current circumstances to postpone the application of this measure until the moment when the Government is in full use of its proposition and regulatory capacity, in accordance with article 22 of Law 50/1997 of 27 November, and without prejudice to the fact that the effect of the year is taken back.

Consistent with the above, the application of article 58 of the consolidated text of the General Social Security Act, approved by Royal Legislative Decree 8/2015 of 30 October, should be suspended for three fundamental reasons. On the one hand, this provision has been widely questioned in the context of the social dialogue and between the parliamentary groups within the Toledo Pact, to the extent that it has not been applied in the financial years 2018 and 2019 in order to avoid a revaluation which would have led to a loss of purchasing power for pensioners.

On the other hand, the minimum increase of 0.25 per cent contained in the aforementioned article would make it necessary to double the implementation of a specific computer application, as well as the sending of communications to beneficiaries, with the consequent increase in costs and a decrease in the efficiency of the system.

Finally, the financial equilibrium of the Social Security would require that the revaluation be accompanied by other measures aimed at strengthening the revenues of the system that cannot be adopted at this time by going beyond the ordinary office of public affairs that currently limit the government’s management. In addition, it should be borne in mind that in 2019 all pensions have gained purchasing power, given that the average variation in the Consumer Price Index throughout the year will be significantly lower than the revaluation of 1.6 per cent on a general basis and 3 per cent for the minimum amounts established by Royal Decree Law 28/2018 of 28 December, for the revaluation of public pensions and other urgent employment measures.

-         Royal Decree-Law 1/2020, of 14 January, establishing the revaluation and maintenance of public pensions and benefits of the social security system (BOE 15-1-2020).

https: //www.boe.es/boe/dias/2020/01/15/pdfs/BOE-A-2020-501.pdf

With effect from 1 January 2020, this Royal Decree-Law provides for a revaluation of pensions and other benefits paid by the social security system, in its contributory and non-contributory manner, as well as for State Passive Classes of 0.9 per cent. Article 58 of the consolidated text of the General Social Security Act, approved by the Royal Legislative Decree 8/2015 of 30 October, and article 27 of the consolidated text of the Act on State Passive Classes, approved by the Royal Legislative Decree 670/1987 of 30 April, are not applicable.

On the other hand, provision is also made for the maintenance of the purchasing power of pensions if inflation in 2020 is higher than the expected increase of 0.9 per cent.

Finally, an updated table of the amounts of certain pensions and benefits applicable for the year 2020 is included as an annex.

TABLE OF MINIMUM CONTRIBUTION MODALITY PENSION AMOUNTS FOR THE YEAR 2020

PENSION CLASS	HOLDERS
	With  a dependent spouse EUR/year	No spouse: Unit One-person economic EUR/year		With a non-dependent spouse EUR/year
Retirement: Holder age 65 years old Member under the age of 65 Holder age 65 from the Grand Invalidity	11.807,60 11.069,80 17.711,40	9.569,00 8.953,00 14.354,20		9.081,80 8.461,60 13.623,40
Permanent incapacity: Major Invalidity Absolute Total: Holder aged 65 and over Total: Holder aged between 60 and 64 years Total: Derived from common disease under 60 years of age Part of the accident at work scheme: Holder with 65 years	17.711,40 11.807,60 11,807,60 11.069,80 7.054,60 11.807,60	14.354,20 9.569,00 9.569,00 8.953,00 7.054,60 9.569,00		13.623,40 9.081,80 9.081,80 8.461,60 6.993,00 9.081,80
Widow (er): Holder with family expenses Holder aged 65 years or with a disability equal to or above 65 per 100 Holder aged between 60 and 64 years Holder with less than 60 years of age	_ _ _ _	11.069,80 9.569,00 8.953,00 7.249,20		_ _ _ _
Orphan’s: By beneficiary			2.924,60
Per disabled beneficiary under the age of 18 with a disability in a degree equal to or greater than 65 per 100			5.754,00
In the total orphanage the minimum shall be increased by EUR 7,249.20/year distributed, where applicable to beneficiaries
Orphanage Benefit:
A beneficiary			8.820,20
Several beneficiaries to be distributed among the number of beneficiaries 100			14.868,00
In favour of family members:
By beneficiary If there is no widower or orphan pensioners: Only one beneficiary with 65 years old A single beneficiary under 65 years of age Several beneficiaries: The minimum allocated to each of them shall be increased by the amount resulting from the apportionment of EUR 4,324.60/year among the number of beneficiaries			2.924,60 7.067,20 6.661,20

Income limit for the recognition of minimum financial supplements:

— In 2020:

• Without a dependent spouse: EUR7.638,00 EUR/year.

• With a dependent spouse: EUR8.909,00 EUR/year.

-         Royal Decree-Law 8/2020, of 17 March, on extraordinary urgent measures to address the economic and social impact of COVID-19 (BOE 19-3-2020. Corrigendum 25-3-2020).

https: //www.boe.es/boe/dias/2020/03/18/pdfs/BOE-A-2020-3824.pdf

https: //boe.es/boe/dias/2020/03/25/pdfs/BOE-A-2020-4025.pdf

This regulation recognizes an extraordinary benefit for cessation of activity, until the last day of the month in which the state of alarm expires, to self-employed workers who have had to suspend their activity under Royal Decree 463/2020 of 14 March, or, in another case, when their invoicing in the month prior to which the benefit is requested is reduced by at least 75 per cent in relation to the average turnover for the previous six months.

During the time in which he receives the extraordinary benefit, the worker is not required to contribute, although the period is considered as a contribution for the purposes of the benefits of the scheme. Therefore, workers who benefit from this benefit (for which no prior contribution period is required) not only have they suspended the obligation to pay fees, but will also be receiving financial aid until the end of the alarm.

-         Royal Decree-Law 11/2020, of 31 March, adopting urgent complementary measures in the social and economic field to face COVID-19 (BOE 1-4-2020, Correction of errors 9-4-2020).

https: //www.boe.es/boe/dias/2020/04/01/pdfs/BOE-A-2020-4208.pdf

https: //boe.es/boe/dias/2020/05/09/

It establishes the compatibility of the child care allowance affected by cancer or other serious illness, and the unemployment or cessation of activity benefit during the state of alarm.

II.       HEALTH CARE.

A)   Changes made:

1) Concretion and updating of the service portfolio

Work has been done on updating the common portfolio of services of the National System based on effectiveness and efficiency criteria and through the evaluation of techniques, technologies and procedures carried out by the Spanish Network of Health Technology Assessment Agencies and National Health System Benefits and expert criteria in the corresponding areas.

On the occasion of Order SSI/1356/2015 of 2 July, amending Annexes II, III and VI to Royal Decree 1030/2006 of 15 September, establishing the portfolio of common services of the National Health System and the procedure for updating them, and regulating the monitoring studies of techniques, technologies and procedures, five monitoring studies are being carried out for four types of implants: biodegradable esophageal stent, mitral valve repair system by clip, endobronchial valve for persistent aerial leakage and left ear closure device and glucose monitoring system (flash type) for patients aged 4 to 17 years with type I diabetes mellitus who perform intensive insulin therapy (multiple daily doses or insulin pumps), and require at least six digital blood punctures per day for self-monitoring. These studies will make it possible to have information based on protocols agreed with experts that will facilitate a decision on the conditions of stay in portfolio of these types of products, in order to ensure quality care for patients who need them.

B)   Changes decided, planned or proposed in the reference period:

1) Concretion and updating of the service portfolio

Basic common portfolio of care services

— Provide glucose monitoring systems (flash type) to adult patients with type I diabetes mellitus who perform intensive insulin therapy (multiple daily doses or insulin pumps), and require at least six digital punctures per day for self-monitoring of blood glucose. A timetable has been drawn up to provide this first to the most priority groups, and it has been gradually made easier so that by 31 December 2020 it will reach the total number of adults who meet criteria.

—Acts have been initiated to conduct a monitoring study on ventricular assistance devices as target therapy (permanent or long-term) for patients who are not candidates for transplantation.

— A ministerial order is in the final stages of processing to give access to assisted human reproduction techniques within the framework of the common portfolio of services of the National Health System to women who, without having fertility problems, because of their sexual orientation or personal situation, require these treatments to achieve their desire for motherhood. This standard will also include the oocyte bank in the classification and definition of health centres, services and facilities and units listed in the annexes to Royal Decree 1277/2003 of 10 October.

— Include in the next norm to update Royal Decree 1030/2006, of 15 September, establishing the portfolio of common services of the National Health System and the procedure for its updating: neonatal population screening of biotinidase deficit, and indications of protontherapy within the framework of the common portfolio of services.

— The possible updating of the oral health portfolio, the updating of neonatal hypoacusia screening and the incorporation of new pathologies (Arce syrup and homocystinuria) to the neonatal screening program and prenatal screening by fetal DNA test are being evaluated.

Supplementary common portfolio in the areas of:

a)    Supplementary orthoprosthetic benefit: the common catalogue of supplementary orthoprosthetic provision is being developed in the section on external upper and lower limb prostheses which will include new product types. This section completes the completion of the common catalogue of supplementary orthoprosthetic benefit relating to wheelchairs, special orthoprosthetics and prostheses other than those of members, hearing prostheses and external components of the diaphragmatic stimulator, which is regulated by Order SCB/45/2019 of 22 January, and Order SCB/480/2019 of 26 April. Work is under way on the implementation of the software application that will support the Offering (OFEPO) so that once the Offering procedure is launched, it will allow the identification and identification of all the products that will be eligible for funding.

b)    Provision of dietary products: New clinical indications of enteral home nutrition are being assessed to determine whether they are included in the common portfolio of services.

2) Health Cohesion Fund.

Work is under way on the ministerial order updating Annexes I and III, which regulate compensation costs at the national level for hospitalisation processes, outpatient procedures and centres, services and reference units of the NHS (CSUR), taking into account the incorporation of new CSURs into the NHS.

3) NHS Reference Centres, Services and Units (CSUR) and European Reference Networks (ERN)

In line with the provisions of the European Commission in the framework of cross-border healthcare, work is under way to integrate the CSUR project with the European Reference Networks project. In addition, in the European Commission’s call for full members of the RNAs, Spanish centres have been presented to 21 of the 24 RNAs. This call is pending. The 3 ERNs to which no centre has been presented in this call already have full Spanish members. This will strengthen the presence of Spanish centres in all RNAs.

4) Assisted human reproduction

Work is under way on the development of the draft Royal Decree regulating the establishment, organisation and operation of national registers on assisted human reproduction, including the national donor register, the national register of activity and results of assisted reproduction centres and services (RHA) and the registration of RHA centres and services.

This provision is implemented in compliance with Act No. 14/2006 of 26 May on assisted human reproduction techniques, chapter VII, articles 21 and 22 and article 30 of Royal Decree-Law 9/2014 of 4 July, which establishes the standards of quality and safety for the donation, procurement, evaluation, processing, preservation, storage and distribution of human tissues and cells and the rules for coordination and functioning for human use. In addition, this regulatory development complies with European RHA regulations.

With the publication of this standard, the Ministry of Health will comply with the objective of regulating the establishment, organisation and operation of RHA registers and the management of donor-related information and donations of reproductive cells, RHA centres and services, as well as the activity and results of these centres and services, and all this information is housed in a computer platform that houses the unique information system called SIRHA (Assisted Human Reproduction Information System).

III.       SICKNESS BENEFITS

-           Royal Decree-Law 11/2020, of 31 March, adopting additional urgent measures in the social and economic field to deal with COVID-19 (BOE 1-4-2020. Correction of errors 9-4-2020).

https: //www.boe.es/boe/dias/2020/04/01/pdfs/BOE-A-2020-4208.pdf

https: //boe.es/boe/dias/2020/04/09/pdfs/BOE-A-2020-4377.pdf

In this Royal Decree-Law, with regard to temporary incapacity in exceptional circumstances of total confinement, on an exceptional basis, and with effect from the outset of the confinement situation, and by means of the corresponding discharge, it provides that this protection shall be extended to those workers forced to move from the locality and have an obligation to provide the essential services referred to in Royal Decree-Law 10/2020, provided that the confinement of the population where they have their domicile has been agreed and they have been expressly denied the possibility of moving by the competent authority, they cannot carry out their work telematically for reasons not attributable to the company for which they provide their services or the worker himself and have no right to receive any other public benefit.

Accreditation of the confinement agreement of the population where the domicile is held and the denial of the possibility of travel shall be carried out by certification issued by the municipality of the domicile to the relevant public health service body.

Similarly, the impossibility of carrying out the work telematics shall be proved by a certification of the undertaking or a responsible declaration in the case of self-employed workers to the same body of the public health service.

-         Royal Decree-Law 15/2020 of 21 April on supplementary urgent measures to support the economy and employment (BOE 22-4-2020).

https: //boe.es/boe/dias/2020/04/22/

This Royal Decree-Law establishes the effects on the temporary inability of the option of a mutual collaborator with social security carried out by the workers of the Special Social Security Regime of Self-employed persons to entitle the right to extraordinary benefit by termination of activity regulated in article 17 of Royal Decree-Law 8/2020, of 17 March, of extraordinary urgent measures to deal with the economic and social impact of COVID-19.

Thus, the option of a mutual collaborator with the Social Security of workers of the Special Social Security Scheme of Self-employed persons, made in order to give rise to the right to extraordinary benefit by termination of activity regulated in article 17 of Royal Decree-Law 8/2020, of 17 March, will result in the mutual collaborator’s incapacity for which the self-employed worker has opted for the protection and responsibility for the payment of the extraordinary benefit due to termination of activity,

as well as the rest of the benefits derived from the contingencies for which the coverage has been formalized, including the temporary disability benefit whose medical leave is issued after the date of formalization of the protection with said mutual and derives from the relapse of a previous temporary disability process covered with the managing entity

Responsibility for the payment of the economic benefits derived from the processes that are in progress at the time of the date of formalization of the protection referred to in the first paragraph, will continue to correspond to the managing entity.

IV.       UNEMPLOYMENT BENEFITS.

1 – On February 27, 2020, Royal Decree-Law 5/2020 entered into force, which in its third article regulates the reduction, until 31 December 2020, of the minimum number of paid real working days for access to unemployment benefit or agricultural income in favour of casual agricultural workers residing in the territory of the Autonomous Communities of Andalusia and Extremadura.

2.- MEASURES TAKEN BY COVID-19

The Ministry of Labour and Social Economy, through Public Service of State Employment (SEPE), is responsible for dealing with one of the most serious problems that the Coronavirus poses, its impact on employment and the need to provide social protection to those who have lost their jobs and those who are affected by a Temporary Employment Regulation (ERTE) file.

By Royal Decree 463/2020 of 14 March, which declared a state of alarm for the management of the health crisis situation caused by COVID-19, the Government adopted certain preventive and containment measures and recommendations in relation to the situation and evolution of the coronavirus (COVID-19):

Ø  Royal Decree-Law 8/2020, of 17 March, on extraordinary urgent measures to address the economic and social impact of COVID-19.

This Royal Decree-Law contains measures aimed at a triple objective:

-          Strengthen the protection of workers, families and vulnerable groups;

-          Support continuity in productive activity and the maintenance of employment;

-          Strengthen the fight against the disease.

Focusing on the second of the objectives, and especially within the competence of the SEPE, we should highlight the measures adopted on temporary suspension of contracts and temporary reduction of the working day (ERTEs), which aim to prevent a situation like the present one from having a negative structural impact on employment, prioritising the maintenance of employment over the termination of contracts.

For this reason, the RDL specifies that the loss of activity resulting from COVID-19 will be considered force majeure for the purposes of suspension of contracts or reduction of the working day and expedites the processing of employment regulation procedures, both by force majeure, as well as for economic, technical, organisational or production reasons.

Furthermore, in view of the extremely serious situation, the coverage of workers affected by an ERTE is strengthened, enabling them to have access to the contributory unemployment benefit, even if they do not have the period of contribution necessary to have access to it and, in addition, that the period of the suspension of the contract or the reduction of the working day during which they are receiving the benefit does not compose them for the purpose of consuming the maximum periods legally established.

-       Article 27 under the name of extraordinary measures relating to the extension of unemployment benefit and the annual declaration of income, provides that the Management Entity shall recognise the extraordinary unemployment benefit or the incorporation into the Active Income Program of Integration without the need for applicants to prove the active search for employment before the public employment services.

-       Article 28 determines that measures (the measures relating to ERTEs, with regard to TGSS contributions, extraordinary unemployment protection, temporary limitation of the effects of late filing, as well as those relating to the extension of the allowance and the declaration of income as a result of the late submission of applications) shall be in force for as long as the extraordinary situation resulting from COVID-19 is maintained.

-       Highlight the safeguarding of employment set out in the Sixth Additional Provision, which expressly subject the RDL measures to the undertaking to maintain employment for a period of six months from the date of resumption of the activity.

Ø  Royal Decree-Law 9/2020, of 27 March, adopting complementary measures, in the field of labour, to mitigate the effects of COVID-19.

This Royal Decree-Law contains the following measures:

-       Article 2 regulates extraordinary measures for the protection of employment, stating that force majeure and the economic, technical, organisational and production causes for the suspension of contracts and reduction of working hours provided for in Articles 22 and 23 of Royal Decree-Law 8/2020 of 17 March shall not be considered as justification for the termination of the employment contract or dismissal.

-       Article 3 provides for extraordinary measures to expedite the processing and payment of unemployment benefits in the case of ERTEs, which entail suspensions of contract and reductions of working hours that have their cause of force majeure, or reductions in working hours due to economic, technical, organisational and production reasons, resulting from COVID-19.

-       Article 4 provides for an extraordinary measure applicable to cooperative societies for the adoption of agreements in proceedings for total or partial suspension, thus, where, due to lack of adequate or sufficient means, the General Assembly of cooperative societies cannot be convened for their conclusion through virtual means, the Governing Council shall assume the competence to approve the total or partial suspension of the work allowance.

-       Article 5provides that the suspension of temporary contracts, including training, relief and internship contracts, in ERTEs based on force majeure or for economic, technical, organisational and production reasons, which entail the interruption of the calculation of their duration and the reference periods equivalent to the period suspended in respect of the workers concerned.

-       The third additional provision establishes the date of effects of unemployment benefits arising from proceedings based on the cases referred to in Articles 22 and 23 of Royal Decree-Law 8/2020 of 17 March.

-       The date of effect of the legal situation of unemployment in cases of force majeure shall be the date of the causation, and, in cases due to economic, technical, organisational and production reasons, the date of effect of the legal unemployment situation shall be coincident or after the date on which the undertaking informs the labour authority of the decision taken.

Ø  Royal Decree-Law 11/2020, of 31 March, adopting complementary measures in the social and economic field to deal with COVID-19.

It highlights the following issues affecting the scope of the SEPE:

-        Articles 30-32: Special allowance is created for lack of activity for persons included in the Special System of Household Employees of the General Social Security System

o   Persons who are registered in the Special System of Household Employees of the General Social Security Regime before the entry into force of Royal Decree 463/2020, of March 14, by the that the state of alarm is declared for the management of the health crisis situation caused by COVID-19, they have stopped providing services, totally or partially, on a temporary basis, in order to reduce the risk of contagion, for reasons beyond the control of your will, in one or more addresses and due to the COVID-19 health crisis, or your contract has been terminated because of COVID-19, shall be entitled to an extraordinary allowance for lack of activity.

o   Amount: percentage of 70 % of the regulatory base

o   This extraordinary allowance for non-activity shall be paid for monthly periods, from the date of birth of the right

-        Article 33: Exceptional unemployment benefit at end of temporary contract

o   They shall be entitled to the exceptional unemployment benefit for which a fixed-term contract of at least two months ' duration would have been terminated, after the entry into force of Royal Decree 463/2020, of 14 March, declaring a state of alarm for the management of the health crisis situation caused by COVID-19; they do not have the necessary contributions to obtain another benefit or allowance if they lack income in accordance with the terms set out in article 275 of the General Law on Social Security, approved by Royal Legislative Decree 8/2015, of 30 October.

o   This allowance shall be recognised to the persons concerned, in the terms referred to in the preceding paragraph, by the termination of a fixed-term contract, including internship, training and relief contracts, and who fulfil the rest of the requirements provided for in this Article.

o   The exceptional unemployment benefit shall be incompatible with the receipt of any minimum income, inclusion income, social salary or similar assistance granted by any public administration, as well as any of the unemployment benefits provided for in article 274 of the consolidated text of the General Social Security Act, approved by Royal Legislative Decree 8/2015 of 30 October.

o   The exceptional grant will consist of a monthly grant of 80 per cent of the current monthly Multi-Effect Public Income Indicator.

o   The duration of this exceptional allowance shall be one month, which may be extended if so determined by Royal Decree-Law.

o   DT 3TH: The State Public Employment Service shall establish within one month, from the entry into force of this Royal Decree-Law, the procedure for the processing of applications, which shall determine the forms, the processing system (presential or telematics) and the deadlines for their submission.

Ø  Royal Decree-Law 12/2020: protection of victims of gender-based violence during confinement:

-       It establishes a series of measures designed to ensure the maintenance and provision of comprehensive assistance and protection services for victims of gender-based violence, adapting them to the exceptional circumstances resulting from Royal Decree 463/2020 of 14 March, which declared the state of alarm for the management of the health crisis caused by COVID-19.

Ø  Royal Decree-Law 13/2020, of 7 April, adopting urgent measures in the field of agricultural employment

o   The aim of the RDL isto encourage the temporary recruitment of workers in the agricultural sector by introducing special measures to make employment more flexible, of a social and labour nature, necessary to ensure the maintenance of agricultural activity during the current state of alarm.

o   The following shall be beneficiaries of extraordinary labour easing measures:

§  a) Persons in a situation of unemployment or cessation of activity.

§  b) Workers whose contracts have been temporarily suspended as a result of the temporary closure of the activity

§  c)Migrant workers whose work permit ends in the period between the entry into force of Royal Decree 463/2020 of 14 March 2020 and 30 June 2020.

§  d) Young third-country nationals, who are in a regular situation between the ages of 18 and 21.

§  And they will be able to benefit from the flexibilisation measures approved by this royal decree-law people whose homes are close to the places where the work is to be carried out.

o   The remuneration received for the work activity carried out under the extraordinary measures for the easing of employment laid down in this Royal Decree-Law shall be compatible with:

§  with unemployment benefit in favour of casual workers included in the Special Agrarian Social Security Scheme, or with agricultural income.

§  with unemployment benefits arising from suspension for economic, technical, organisational or production reasons, arising from the measures provided for in articles 22, 23 and 25 of Royal Decree-Law 8/2020 of 17 March, extraordinary urgent measures to address the economic and social impact of COVID-19.

§  with any other unemployment benefits regulated in Title III of the consolidated text of the General Social Security Act.

§  with benefits for cessation of activity excluding those that have their origin in the measure provided for in article 17 of Royal Decree-Law 8/2020, of March 17, on extraordinary urgent measures to face the economic and social impact of the COVID-19.

§  with any other benefit of an economic nature or any other benefit or social assistance, granted by any Administration which is incompatible with the work, or which, otherwise, as a result of the receipt of income from the work activity, would exceed the income limits.

o   They are incompatible with social security benefits for temporary incapacity, risk during pregnancy and risk during breastfeeding, with permanent contributory disability pensions, birth benefit and social security child care.

o   It has also been published in the Fourth Additional Provision. Simplification measures for the processing of the procedures of the State Public Employment Service (SEPE) and the Navy Social Institute (ISM) as a result of the declaration of a state of alarm.

Ø  Royal Decree-Law 17/2020, of 5 May, approving measures to support the cultural and tax sector to address the economic and social impact of COVID-2019.

o   It regulates extraordinary access to unemployment benefit for cultural workers, who, by reason of their intermitence, have not been covered by the established coverage mechanisms. In this way, artists will have extraordinary access to unemployment benefit for a period of up to 180 days, depending on the period of employment paid in the previous year. This measure covers 45 % of employment contracts in the art sector, which are by work or service, i.e. intermittent in nature.

o   Article 2.1 of the RDL states that, exceptionally and transitionally for the financial year 2020, during the periods of inactivity referred to in Article 249 ter LGSS, the protective action regulated therein shall include economic benefits for unemployment, in addition to the benefit for birth and care of minors, retirement, permanent incapacity and death and survival resulting from common contingencies.

o   The payment of this benefit shall be made through the form of direct payment by the National Social Security Institute (INSS). Returning to Article 2.1 of the new RDL, recognition of the right to benefit shall be born from the day following the day on which the application is submitted, and the remaining requirements laid down in article 266 of the consolidated text of the General Social SecurityLaw must be met.

o   According to Article 2.2 of RDL 17/2020, those workers who, as a result of the health crisis resulting from COVID-19, are unable to continue the work activity that led to their inclusion in the General Regime as artists in public performances, will be recognised, during periods of inactivity in the 2020 financial year that respond to that circumstance, to be in a legal situation of unemployment, as well as to be covered by the minimum period of contribution if they prove it, provided that they are not receiving the benefit or have opted for the ordinary contributory unemployment benefit.

o   The recognition of the right to benefit shall be born from the day following the day on which the application is submitted and the remaining requirements laid down in Article 266 LGSS must be met.

o   The benefit shall be incompatible with any perception derived from self-employer or employer activities, or with any other benefit, minimum income, inclusion income, social salary or similar aid granted by any Public Administration

o   Article 2.3 of the RDL deals with the duration of the benefit, which shall be based on the days of discharge from social security with actual service provision in that activity in the year preceding the legal situation of unemployment.

o   Finally, the regulatory basis for unemployment benefit shall be constituted by the minimum contribution base in force at all times, by common contingencies, corresponding to Group 7 of the scale of contribution groups under the General Scheme.

V.       OLD-AGE BENEFITS.

-         Royal Decree-Law 18/2019 of 27 December adopting certain measures in tax, cadastral and social security matters (BOE 28-12-2019).

https: //www.boe.es/boe/dias/2019/12/28/pdfs/BOE-A-2019-18611.pdf

This Royal Decree-Law amends paragraph 5 of the fourth transitional provision of the consolidated text of the General Social Security Act, which reads as follows: The regulation of the retirement pension, in its various forms, requirements for access, conditions and rules for determining benefits, in force prior to the entry into force of Law 27/2011 of 1 August, updating and modernising the social security system, will continue to apply to retirement pensions that are incurred before 1 January 2021, in the following cases:

a)    Persons whose employment relationship has ceased before 1 April 2013, provided that after that date they do not again fall under one of the schemes of the social security system.

b)    Persons with an employment relationship suspended or terminated as a result of decisions taken in employment regulation files, or through collective agreements of any field, collective agreements of undertakings, as well as decisions taken in insolvency proceedings, approved, signed or declared prior to 1 April 2013, provided that the termination or suspension of the employment relationship takes place before 1 January 2021. It shall be essential that the above collective agreements of enterprise be duly registered with the National Social Security Institute (INSS) or the Navy Social Institute (ISM), if applicable, within the time limit to be determined by regulation.

c)    However, the persons referred to in the preceding paragraphs may also choose to apply, for the recognition of their right to a pension, legislation which is in force on the date of the event causing the pension.

-         Royal Decree-Law 11/2020, of 31 March, adopting additional urgent measures in the social and economic field to deal with COVID-19 (BOE 1-4-2020. Correction of errors 9-4-2020).

https: //www.boe.es/boe/dias/2020/04/01/pdfs/BOE-A-2020-4208.pdf

https: //boe.es/boe/dias/2020/04/09/pdfs/BOE-A-2020-4377.pdf

This Royal Decree-Law, in its fifteenth additional provision, establishes the effects of the compatibility of the retirement pension with the appointment of health professionals as statutory staff under Order SND/232/2020 of 15 March, which adopts measures in the field of human resources and means for the management of the health crisis situation caused by COVID-19.

1. Retired health professionals medical and nurses and emeritus staff, who are reinstated in active service by the competent authority of the Autonomous Community, or by the National Health Management Institute (INGESA) in the autonomous cities of Ceuta and Melilla, shall be entitled, through the corresponding statutory appointment, to receive the amount of the retirement pension they were receiving at the time of entry to work, in any of its modalities, including the minimum supplement.

2. Articles 213 and 214 of Royal Legislative Decree 8/2015 of 30 October, approving the consolidated text of the General Social Security Act, shall not apply to them.

3. The beneficiary shall be regarded as a pensioner for all purposes.

4. During this work, the scheme for the limitation of pensions, incompatibilities and the exercise of the right of option, provided for in Royal Legislative Decree 8/2015, of 30 October, approving the consolidated text of the General Social Security Act, shall apply.

The protection of these workers, on the occasion or as a result of the work performed, shall consist of:

a)    When a part of medical leave qualified as an occupational accident is issued, they shall be entitled to the corresponding temporary incapacity benefit resulting from an accident at work which shall be compatible with the receipt of the retirement pension which they have received at the time of their incorporation.

b)    When a portion of medical leave qualified as a common illness is issued, and provided that it attests to the contributions required by Article 172(a) of Royal Legislative Decree 8/2015 of 30 October, approving the consolidated text of the General Social Security Act, they shall be entitled to the corresponding temporary incapacity benefit arising from common contingencies which shall be compatible with the receipt of the retirement pension received at the time of incorporation.

c)    Where they are declared permanent incapacity, they may choose to continue receiving the retirement pension or to benefit from the corresponding permanent disability pension arising from an accident at work.

d)    When retired professionals die on the occasion or as a result of the work performed by such reinstatement, they may cause the corresponding death and survivor benefits resulting from an accident at work.

-         Royal Decree-Law 13/2020 of 7 April adopting certain urgent measures in the field of agricultural employment (BOE 8-4-2020).

https: //www.boe.es/boe/dias/2020/04/08/pdfs/BOE-A-2020-4332.pdf

Amendments are made to the fifteenth additional provision of Royal Decree-Law 11/2020 of 31 March, which incorporates into the legal system the effects of the compatibility of the retirement pension with the appointment of health professionals as statutory staff under Order SND/232/2020 of 15 March, which adopts measures in the field of human resources and means for the management of the health crisis situation caused by COVID-19.

However, in view of the efforts being made by this group, it is necessary to extend the coverage of social security protection to all contingencies, whether due to common illness or occupational disease or accident, whether at work, including accidents in itinere, but not to apply to these professionals, for as long as they remain in this compatibility scheme, the limits of protection that the Social Security rules provide for active retirement, which leads to the need to amend the abovementioned additional paragraphs 4 and 5.

VI.       BENEFITS FOR ACCIDENTS AT WORK AND OCCUPATIONAL DISEASE.

-         Royal Decree-Law 6/2020, of 10 March, adopting certain urgent measures in the economic field and for the protection of public health (BOE 11-3-2020).

https: //boe.es/boe/dias/2020/03/11/pdfs/BOE-A-2020-3434.pdf

Through this regulatory mechanism, it is possible to address the need to assimilate, on an exceptional basis, periods of isolation or contagion of workers as a result of the COVID-19 virus as an accident at work for the purpose of benefiting from the temporary incapacity benefit of the social security system.

In both cases the duration of this exceptional benefit will be determined by the part of solitary confinement and the corresponding discharge. Entitlement to this benefit may be granted to a self-employed or employed person who is on the date of the act causing him/her being discharged in any of the social security schemes.

The date of the causation shall be the date on which the worker ' s isolation or illness is agreed, without prejudice to the fact that the discharge is issued after that date.

-         Royal Decree-Law 15/2020 of 21 April on supplementary urgent measures to support the economy and employment (BOE 22-4-2020).

https: //boe.es/boe/dias/2020/04/22/

Self-employed workers had until June 2019 to make the option for a Mutua collaborator with the Social Security to manage certain social security benefits. A group of some 50,000 self-employed did not do so and at the moment they have to make a massive request for cessation of activity for what is provided in this Royal Decree-Law that can opt for a Mutua at the time of requesting the cessation, and thus ensure that the new entity can recognise the right and facilitate its processing.

They may also apply for the benefit of temporary incapacity from that time also in the Mutua for which they choose.

Finally, a series of measures are taken to transfer to mutual collaborators with the Social Security the management of the extraordinary termination benefit referred to in article 17 of Royal Decree-Law 8/2020 of 17 March, extraordinary urgent measures to deal with the economic and social impact of COVID-19, of those self-employed persons who have not exercised the option provided for in article 83.1.b) of the consolidated text of the General Social Security Act, approved by Royal Legislative Decree 8/2015, of October 30, within the period established by the first transitional provision of Royal Decree-Law 28/2018, of December 28, for the revaluation of public pensions and other urgent measures in matters social, labor and employment.

VII.       FAMILY BENEFITS.

Part not ratified by Spain.

VIII.       MATERNITY BENEFITS.

There has been no change in the matter in the reporting period.

IX.       DISABILITY BENEFITS.

There has been no change in the matter in the reporting period.

X.       SURVIVAL BENEFITS.

Part not ratified by Spain.

XI.       FUNDING.

-           Order TMS/1070/2019, of 24 October, fixing for the financial year 2019 the standard bases for social security contributions, for common contingencies, in the Special Social Security Scheme for Coal Mining (BOE 31-10-2019).

https: //www.boe.es/boe/dias/2019/10/31/pdfs/BOE-A-2019-15603.pdf

-         Royal Decree-Law 16/2019 of 18 November, adopting measures relating to the implementation of the Social Security budget (BOE 19-11-2019).

https: //boe.es/boe/dias/2019/11/19/pdfs/BOE-A-2019-16562.pdf

-         Royal Decree-Law 18/2019 of 27 December adopting certain measures in tax, cadastral and social security matters (BOE 28-12-2019).

https: //www.boe.es/boe/dias/2019/12/28/pdfs/BOE-A-2019-18611.pdf

This rule suspends the application of the system of reductions in occupational contingency contributions to companies that have significantly reduced the number of occupational accidents provided for in Royal Decree 231/2017 of 10 March for contributions generated during the year 2020.

It is also urgent to maintain the extension of the cancellation period for loans granted by the State to the Social Security Administration, as well as the moratoriums granted by the State to various health institutions, which had been recognised in previous budgetary rules.

On the other hand, the limitation of the legislative capacity of a functioning government also requires the extension of some of the measures adopted in Royal Decree-Law 28/2018 of 28 December on bases and rates of social security contributions, which will ensure their applicability as from 1 January 2020, given the temporary nature of this rule, which is limited to 2019. It is therefore agreed that certain contribution rules provided for in Articles 3 to 9 of this legal text shall be maintained, relating to the ceilings and maximum bases for contributions of the social security system, to the contribution of the special systems of household employees and those of agricultural workers for employed and self-employed persons, to the bases and rates of contribution under the Special Conditions of Self-employed persons, to the contribution in the special system for handling and packaging of fresh tomato destined for export.

Finally, by means of the additional provision of this regulation, it extends Order TMS/83/2019 of 31 January, which sets out the legal rules on social security contributions, unemployment, termination protection, the Wage Guarantee Fund and vocational training for the financial year 2019, as long as it does not oppose the provisions of this Royal Decree-Law on social security contributions.

-         Order ISM/109/2020 of 10 February establishing, for the year 2020, the social security contribution bases for workers in the Special Sea Scheme included in the second and third groups (BOE 13-1-2020).

https: //www.boe.es/boe/dias/2020/02/13/pdfs/BOE-A-2020-2112.pdf

-         Royal Decree-Law 7/2020, of 12 March, adopting urgent measures to respond to the economic impact of COVID-19 (BOE 13-3-2020. Correction of errors 25-3-2020).

https: //boe.es/boe/dias/2020/03/13/pdfs/BOE-A-2020-3580.pdf

https: //boe.es/boe/dias/2020/03/25/pdfs/BOE-A-2020-4025.pdf

Companies, excluding those belonging to the public sector, engaged in activities framed in the tourism sectors, as well as those of commerce and hospitality, provided that they are linked to said tourism sector, that generate productive activity in the months of February, March , April, May, June, and those who start or keep the occupation of workers with discontinuous fixed-term contracts during said months, may apply a bonus in said months of 50 percent of the business contributions to Social Security for common contingencies , as well as for the concepts of joint collection of Unemployment, FOGASA and Vocational Training of said workers

Undertakings, excluding those belonging to the public sector, engaged in activities in the tourism sectors, as well as those in commerce and hospitality, provided that they are linked to that sector of tourism, which generate productive activity in the months of February, March, April, May, June and which initiate or maintain in discharge during those months the occupation of workers with fixed discontinuous contracts, may apply a bonus in those months of 50 per cent of the employer’s employment contributions to Social Security for common contingencies, as well as for the concepts of joint collection of Unemployment, FOGASA and Vocational Training of said workers. The provisions of this Article shall apply from 1 January 2020 until 31 December 2020.

-         Royal Decree-Law 8/2020, of 17 March, on extraordinary urgent measures to address the economic and social impact of COVID-19 (BOE 19-3-2020).

https: //www.boe.es/boe/dias/2020/03/18/pdfs/BOE-A-2020-3824.pdf

With the aim of lightening the costs incurred by companies, in cases of force majeure covered by this rule, companies are exempted from payment of 75 per cent of the corporate contribution to Social Security by achieving such exemption at 100 per cent of the contribution when they have fewer than 50 employees, provided that they undertake to maintain employment. Until now, only in cases where force majeure derives from natural catastrophic events involving the total or partial destruction of the undertaking or workplace by preventing the continuation of the activity could the employer be exempted from paying social security contributions.

-         Royal Decree-Law 11/2020, of 31 March, adopting additional urgent measures in the social and economic field to deal with COVID-19 (BOE 1-4-2020. Correction of errors of 9-4-2020).

https: //www.boe.es/boe/dias/2020/04/01/pdfs/BOE-A-2020-4208.pdf

https: //boe.es/boe/dias/2020/04/09/pdfs/BOE-A-2020-4377.pdf

This rule empowers the General Social Security Treasury (TGSS) to grant exceptionally moratoriums on the payment of social security contributions in exceptional circumstances, in cases and conditions determined by Ministerial Order. The accrual period for companies would be from April to June 2020, while for self-employed persons it would be between May and July 2020.

In this area, companies and self-employed persons who do not have in force deferrals of debts with the Social Security are allowed to request the deferral of payment of their debts with the Social Security, due to be paid between April and June 2020, with a substantial reduction in the required interest rate set at 0.5 per cent.

In addition, in order to make it easier for companies and self-employed persons to carry out social security arrangements, companies and gestures are allowed to use the Electronic Data Referral System (RED) to carry out electronic requests and other formalities relating to the deferral of debt payments, moratoriums on payment of contributions and refunds of undue income with Social Security.

On the other hand, it is stated that those self-employed persons who have ceased their activity and who become eligible for the termination of activity benefit regulated by Royal Decree-Law 8/2020 and who have not paid the social contributions corresponding to the days actually worked in March may be paid out of time without surcharge.

In addition, for beneficiaries of the extraordinary termination benefit referred to in Article 17 of Royal Decree-Law 8/2020, in cases of suspension of activity, the contribution corresponding to business days in March 2020 not covered by the benefit regulated in this Article shall not be subject to surcharge, which was not paid within the statutory period of entry.

Finally, the ways in which the reduction in billing can be credited are foreseen. For self-employed workers who are not required to keep books showing the volume of activity, they must prove the reduction of at least 75 per cent required by any means of proof admitted in law.

-         Royal Decree-Law 13/2020 of 7 April adopting certain urgent measures in the field of agricultural employment (BOE 8-4-2020).

https: //www.boe.es/boe/dias/2020/04/08/pdfs/BOE-A-2020-4332.pdf

This Royal Decree-Law amends article 17 of Royal Decree-Law 8/2020 of 17 March, on extraordinary urgent measures to deal with the economic and social impact of COVID, which provides for extraordinary cessation of activity.

-         Royal Decree-Law 15/2020 of 21 April on supplementary urgent measures to support the economy and employment (BOE 22-4-2020).

https: //boe.es/boe/dias/2020/04/22/pdfs/BOE-A-2020-4554.pdf

This regulation approves the extension for the year 2020 of a reduction in contributions during the inactivity situation in the Special System for Agricultural Self-Employed Workers, established under the General Social Security Scheme, for those workers who had completed a maximum of 55 real days paid in 2019.

As was done in 2019 with regard to the same group, this measure facilitates compliance with the obligation to pay the social security contribution to be faced by employed agricultural workers in a situation of inactivity, taking into account both the annual increase in this contribution and the increase in the number of workers who have gone to the situation in the agricultural sector, as a result of the pandemic caused by COVID-19.

In addition, article 35 of Royal Decree-Law 11/2020 of 31 March was amended to adopt additional urgent measures in the social and economic field to deal with COVID-19, in order to give greater legal certainty to the administrative procedure to be followed for the deferral of social security debts which it regulates, given the high number of applications that have been made since its entry into force.

In this regard, the procedure for settling the deferral is simplified, irrespective of the number of monthly payments it includes, a homogeneous criterion is laid down in the determination of the time limit for repayment of the debt by way of staggered payment of the debt and establishes the legal effect of the application until the resolution of the procedure, in relation to the suspension of the administrative periods provided for in the third additional provision of Royal Decree 463/2020 of 14 March, declaring the state of alarm for the management of the health crisis; finally, this postponement is incompatible with the moratorium regulated in article 34 of Royal Decree-Law 11/2020 of 31 March.

Madrid, 16 July 2020

— Detailed report of Spain —

Report with reference period: 31 December 2018.

Spain has ratified the following parts of the Code:

With regard to the request for information on the effect of the legal reforms carried out, it should be reported that the data available to complete the information required in the various sections of this report is 31 December 2018, the last year for which the information necessary to complete the Annual Report is available.

PART II

HEALTH CARE

Article 9

A. Section (c) of prescribed categories of residents is chosen, comprising at least 50 per cent of the total number of residents.

B.All residents  in Spain are protected, whether they belong to the Social Security System or other public social protection schemes, or who do not belong to them without sufficient resources.

C.III.Article 74. Title III.

(1)  The figure corresponding to section A indicates the residents protected by the National Health System. Ministry of Health. Data from 05/31/2020.

(2)  National Statistics Institute. Data from 01/01/2020.

PART III

SICKNESS COMPENSATION

Article 15

A.     Subparagraph (a) is used for protected persons, in the prescribed category of employees, who make up at least 50 per cent of all employees.

B.     All salaried workers who are covered by the relevant (General or Special) Social Security System Scheme are protected by this benefit.

C.    Article 74. Title I.

Source: Ministry of Inclusion, Social Security and Migration

Date of information: 31-XII-2018. Data on thousands of workers.

Article 16

A. Article 65 has been used for the calculation of the benefit.

Article 65 Title I

A.   The calculation of the benefit is made on a daily contribution basis, which is the result of dividing the basis of the previous month by the number of days to which that contribution corresponds. For this basis of daily calculation, in the case of common illness and non-work accident, a percentage of  60 % is applied, which is the daily amount of the benefit from day 4 to day 20. From day 21 the percentage applied is 75 %.

B.   The qualified worker who has been taken as a reference has been that of article 65, paragraph 6 (c), i.e. a qualified male worker who earns a wage equal to 125 per cent of the average earnings of all protected persons. The social security contribution base coincides with this salary.

                               B. 1        The average gain of protected persons has been obtained through the Annual Labour Cost Survey conducted by the National Statistical Institute, which includes the amounts corresponding to regular payments, which refer to monthly payments, including extraordinary payments that are assessed.

                               B. 2        The base time referred to the previous earnings that determines the salary of the skilled worker corresponds to the average wage of 2018.

C.   Amount of the average wage of the qualified male worker who has been chosen: EUR 2.396,17 per month, representing an annual amount of EUR 28.754,04 and a daily amount of EUR 79,87 (gross salary).

The net salary of the presumption without children is EUR 62,05/day or EUR 1861,58/month (16 % retention Tax on the Income of Physical Persons -IRPF- and 6.35 % of Social Security contributions) which represent an annual amount of EUR 22.339,01.

The net salary of the assumption with 2 children is EUR 64,86/day or EUR 1.945,69/month (12,45 % retention Tax on the Income of Physical Persons (IRPF) and 6,35 % of social security contributions) which represent an annual amount of EUR 23.348,28.

      Article   65. Title II.

        Type beneficiary: man with a wife and two children with a salary prior to that of point C of the previous Title.

D.   Amount of allowance allocated at the base time.

Basis for calculation: EUR 79,87/day.

The daily amounts of the benefit in gross and net terms, taking into account the withholdings by I.R.P.F (for a man married to a non-working woman and two children, is 12,45 %) and 6,35 % for social security contributions paid by the worker (corresponding to 4,7 % for common contingencies, 1,55 % for unemployment and 0,1 % for vocational training) are as follows:

E.   He is not entitled to family benefits as it exceeds the income limit which gives entitlement to such benefit.

F.    He is not entitled to family benefits as he exceeds the income limit which gives entitlement to the benefit.

G.   Percentage (D)/(C).

Article 65. Title V.

Beneficiary: employed woman with income equal to that of a qualified male worker. For the purpose of calculating the benefit in this situation, it is considered that for the purpose of withholding tax on income tax, it is a beneficiary without children.

D. Quantity of benefit.

G. Percentages of the amount of the benefit in respect of the basic salary:

PART IV

UNEMPLOYMENT BENEFITS

Article 20

      Unemployment benefit protects the situation of workers who, if they are able and willing to work, lose their employment temporarily or permanently, or temporarily reduce their daily working hours between a minimum of 10 % and a maximum of 70 %, with a corresponding reduction in wages.

Article 21

A.  Subparagraph (a) of this article is chosen.

B.  Workers who are in the situation described in article 20 are protected by unemployment benefit.

C.    Article 74. Title I.

Source: Ministry of Inclusion, Social Security and Migration

Date of information: 31-XII-2018. Data on thousands of workers.

Article 22

A. The rules of article 65 have been            used.

Article 65. Title I.

A. The amount of    the benefit is calculated on a basis which is equal to the average of the contribution bases of the 180 days preceding the unemployment situation. The base applies 70 per cent for benefits paid between 1 and 180 and 50 per cent for benefits paid from day 181 onwards. There is a maximum ceiling on the benefit, which in the event that the worker does not have dependent children is 175 % of the monthly Public Multi-Effect Income Indicator (IPREM), increased by one sixth of the extra pay. This amount in 2018 is EUR 1.098,09/month.

For a worker with two children under 26 years of age, in 2018, the ceiling is 225 % of IPREM increased by a sixth, i.e. EUR 1.411,83/month.

The duration of the benefit is based on previous periods of contribution and ranges from 120 days to 720 days maximum.

B. The            qualified worker who has been taken as a reference has been that of Article 65(6)(c), that is, the one who earns a salary equal to 125 percent of the average profit of all protected persons.

The average earnings of protected persons have been obtained through the Annual Labour Cost Survey conducted by the National Statistical Institute, which collects the amounts corresponding to total wage payments, which includes monthly payments, extraordinary payments that are prorated, payments exceeding the month without assessment, and arrears.

The base time for calculating the previous gain of the skilled worker corresponds to the average wage for 2018.

C. Quantity of the average wage of qualified male workers who have been elected: EUR 2.396,17 per month, representing an annual amount of EUR 28.754,04 and a daily amount of EUR 79,87 (gross salary).

The net salary of the assumption with 2 children is EUR 64,86/day or EUR 1.945,69/month (12,45 % retention Tax on the Income of Physical Persons (IRPF) and 6,35 % of social security contributions) which represent an annual amount of EUR 23.348,28.

Article 65. Title II.

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

Amount of gross salary of the chosen type of worker: EUR 2.396,17 per month.

Amount of net salary of the chosen type of worker: EUR 1.945,69 per month.

The gross benefit would be 70 % of the calculation base for the first 180 days, and 50 % of that base from day 181, i.e. EUR 1.677,32/month and EUR 1.198,08/month, respectively. However, the gross amount received during the first 180 days is EUR 1.411,83/month, as a result of the ceiling indicated above (225 % of IPREM).

In order to obtain the net benefit, the social security contributions paid by the unemployed person (4,7 % of the worker) and the percentage of the tax on the income of physical persons (0 % for this unemployed worker with a wife who does not work and have two children) are deducted.

E. He is not entitled to family benefits as he exceed the income limit that entitles you to the benefit.

F.He is not entitled to family benefits as he exceeds the income limit which gives entitlement to the benefit.

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

Article 24

2.    In social security schemes which provide for this contingency, the duration of the benefit is based on the period of employment paid in the last six years prior to the legal situation of unemployment or the time at which the obligation to contribute ceased, or, where applicable, from the birth of the right to the previous unemployment benefit, on the following scale:

                                                                          

PART V

OLD-AGE BENEFITS

Article 26

2. Law 27/2011 of 1 August establishes the ordinary retirement age at 67 years (65 years, if at least 38 and a half years have been paid), from 2027 onwards, although a transitional period of increase is applied from 65 to 67 years, beginning on 1 January 2013. Law 27/2011, as subsequently amended by Royal Decree-Law 5/2013, has also changed the early retirement scheme, providing for the possibility of early retirement depending on the worker’s mutual status, the voluntary or involuntary dismissal, etc., in accordance with the following rules:

·         From the age of 60, with reduction coefficients in the amount of the pension, for workers who had contributed to Labour Mutualism prior to 1 January 1967. The reduction coefficient of 8 % for each year in advance of the retirement age shall be lower if you have contributed more than 30years.

·         Up to four years before the ordinary retirement age, in the case of contributions at least 33 years and involuntary unemployment and registered as an employment claimant 6 months prior to the application for the retirement pension.

·         Up to two years before the ordinary retirement age, the case of voluntary cessation and having paid at least 35 years.

Article 26.2 of the Code allows for an increase in the retirement age from 65 years if the number of residents who have reached the increased age is at least 10 per cent of the number of residents up to that age and over 15 years of age. According to the data of the population resident in Spain, as at 1 January 2019, it is concluded that the proportion of persons over 65 years of age (9,105.573) among the population aged 15 to 64 years, both inclusive, (30,901.367), amounts to 29,47 %, thus far exceeding the percentage alluded to 10 %.

3. There is the possibility of reconciling (flexible retirement) the receipt of a retirement pension after the pension has been caused, and the pensioner’s completion of a part-time job of between 75 % and 50 % of the full day (from 17/3/2013), reducing the amount of the pension in an inverse proportion to the reduction of the working day. The retirement pension (part-retirement) may also be reconciled with part-time work, with or without a supplementary relief contract, from the age of 60 (mutualists) or 61 years (which gradually increases until 63, according to a transitional period until 2027), provided that they meet the conditions for access to retirement pension with the exception of age.

      Royal Decree-Law 5/2013 of 15 March, on measures to promote the continuity of working life of older workers and promote active ageing, also establishes the compatibility between retirement pensions and employed or self-employed work, once the legal retirement age has reached, for workers with long-term contributory careers, with the possibility of reconciling full-time or part-time employment (with reduced social contributions due to temporary incapacity and occupational contingencies) for workers with long-term contributions, and 50 per cent of the current pension.

      Royal Decree-Law 5/2013, of March 15, on measures to promote the continuity of the working life of older workers and promote active aging, also establishes the compatibility between retirement pension and employment or self-employment, once the legal retirement age is reached, for workers with long contribution careers, being able to make full-time or part-time employment compatible (with reduced social contributions due to temporary disability and professional contingencies, as well as a special solidarity contribution from the 8%) and the collection of 50% of the pension (currently you can receive 100% of the pension as long as it is proven that it have workers in charge).

Article 27

A. Option (a)       

B. Employees and self-employed persons who cease their work and fulfil the following conditions may be beneficiaries of the retirement pension:

­   Have completed 15 years of contributions, of which at least 2 must be covered in the last 15 years prior to the date of retirement.

­   In 2018, 65 years and 6 months of age or 65 years of age and at least 36 years and 6 months have to be paid and cease working. There is the possibility of early retirement from 60 to 61 years with reducing coefficients, as indicated above.

C. (i) Article 74. Title I

Source: Ministry of Inclusion, Social Security and Migration

Date of information: 31-XII-2018. Data on thousands of workers.

Article 28

A.Use is  made of Article 65.

Article 65.Title I.

A. The basis of calculation for 2018 is the average of the employee’s contribution bases in the 21 years preceding the month preceding the date of the causation. These bases are updated except in the last two years, depending on the evolution of the Consumer Price Index.

The amount of the pension is calculated by applying to the calculation basis, a percentage based on the number of years contributed. In 2018, with 35 years and 6 months of contribution, 100 % was obtained. The percentage is variable according to the following scale:

YEARS	PERCENTAGE OF THE REGULATORY BASE
For 15 contributions	50 %
During the years 2013 to 2019	For each additional month of contribution between the months 1 and 163, 0,21 % and for the following 83 months 0,19 %
During the years 2020 to 2022	For each additional month of contribution between the months 1 and 106, 0,21 % and for the following 146 months 0,19 %
During the years 2023 to 2026	For each additional month of contribution between the months 1 and 49, 0,21 % and for the following 209 months 0,19 %
From the year 2027	For each additional month of contribution between the months 1 and 248, 0,19 % and for the following 16 months 0,18 %

The possibility of early retirement from 60/61 years means that the amount of the pension is reduced by 6 to 8 percentage points (depending on years of contributions and voluntary or unwillingness of early retirement) for each year which fails to reach the ordinary retirement age.

As from 1 January 2016, where the beneficiary of the retirement pension is a woman who has had 2 or more children, biological or adopted, a maternity supplement consisting of a percentage additional to the amount of the pension calculated in accordance with the above paragraphs applies. This percentage shall be 5 per cent for two children, 10 per cent with three children and 15 per cent for four or more children.     

                           

C.   The qualified male worker who has been taken as a reference has been that of article 65, paragraph 6 (c), i.e. earning a salary equal to 125 per cent of the average earnings of all protected persons.

B.1.b) The average gain of protected persons has been obtained through the Annual Labour Cost Survey conducted by the National Institute of Statistics, which reflects the amount corresponding to ordinary payments, which relate to monthly payments, including extraordinary payments that are assessed.

B.2.     The  base time for calculating the previous gain of the qualified worker corresponds to the average wage for 2018.

C. Quantity of the average wage of qualified male workers who have been elected: EUR 2.396,17 per month, representing an annual amount of EUR 28.754,04 (gross salary).

The net salary of the presumption without children is EUR 62,05/day or EUR 1.861,58/month (16 % retention Tax on the Income of Physical Persons -IRPF- and 6,35 % of Social Security contributions) which represent an annual amount of EUR 22.339,01.

Article 65.Title III.

D. Use of Article 29.1. The beneficiary is a worker who has paid contributions for 30 years and has reached the age of 65. In accordance with the provisions of Law 27/2011 and Royal Decree-Law 5/2013, he could not retire at the age of 65 and 30 years, but with 65 years and 6 months (30 contributions), so the amount of the retirement pension will be 87,46 % of the regulatory base.

The regulatory basis for the calculation of the pension has been obtained as an average of the contributions for the last twenty-one years applicable in 2018 and the amount for the reference beneficiary is EUR 2.052,93.

The gross amount of the pension is EUR 1.795,49/month, which in 14 amounts to EUR 25.136,86 per year for a pension which occurs on 31 December 2018.

The net amount of the pension is EUR 21.265,70/year.(Retention I.R.P.F. for pensioner with wife without children: 15,40 %).

E. He is not entitled to family benefits because he exceeds the income limit.

F.    He is not entitled to family benefits because he exceeds the income limit.

G.   Percentage of pension compared to base salary:

Article 65. Title V.

Beneficiary: a woman with an income equal to that of the male worker, who has worked for 30 years and has reached 65 years and 6 months of age, since, as indicated above, she would be able to retire only at 65 years and 6 months (30 contributors). For the calculation of the pension in this situation, it is considered that for the purposes of income tax withholdings, it is a beneficiary without children.

Average wage EUR 2.396,17 per month or EUR 28.754,04 per year (gross salary).

Net amount of average wage: EUR 22.339,01 per year.

D. Gross annual pension amount EUR 25.136,86.

Net annual pension amount EUR 21.265,70 (IRPF retention: 15,40 %).

G.   Percentage of pension compared to base salary:

B. No use has been made of this subparagraph.

C. Article 65 is used for the revaluation of retirement benefits.

Article 65. Title VI.

1.    Retirement pensions have been revalued by 1,70 % as a result of successive revaluations. Firstly, Royal Decree 1079/2017 of 29 December set an increase of 0,25 per cent. Subsequently, Act No. 6/2018 of 3 July 2018, on budgets for 2018, approved an additional increase of 1.35 per cent (Minimum and non-contributory pensions were increased by 3 per cent in total).Finally, Royal Decree Law 28/2018 of 28 December, for the revaluation of public pensions and other urgent measures in social, labour and employment matters, agreed to pay 0,1 % for the deviation of the increase in pensions (1,6 %), compared to the increase in average inflation between December 2017 and November 2018.

The revaluation of retirement pensions in 2018 has led to the suspension of the application of Law 23/2013, of 23 December, which regulates the Sustainability Factor and the Revaluation Index of the Social Security Pension System.

2.   

(1) Base 2016.

3.

Article 29

2. Paragraphs 1 and 2 of this Article are used.

Reference beneficiary with a retirement pension regulatory base of EUR 2.052,93.

-       For 30 years of contribution and 65 years and 6 months of age corresponds to a percentage of the regulatory base of 87,46 %.

Amount of pension: EUR 1.795,49/month.

-       For 15 years of contribution and 65 years and 5 months of age corresponds to a percentage of the regulatory base of 50 %.

Amount of pension: EUR 1.026,47/month.

In addition to the contributory retirement pensions referred to above, non-contributory retirement pensions are granted where they have not previously contributed or do not meet the minimum required period, subject to the following requirements:

-          65 years of age.

-          Reside legally in Spanish territory and have done so for at least 10 years from the age of 16, of which 2 must be consecutive and immediately prior to the date of the application for the pension.

-          Lack of sufficient income. Insufficient income is considered to exist where the sum of income of the unit of cohabitation does not exceed certain limits of accumulation of resources, which are based on the number of cohabitants and the number of ascendants/descendants in the first degree of the beneficiary (in the case of a single beneficiary without descendants or ascendants, this limit is equivalent to the amount of the benefit which is EUR 5.327 in 2018).

PART I SAW

OCCUPATIONAL ACCIDENT AND OCCUPATIONAL DISEASE BENEFIT

Article 32

      Types of permanent disability due to accidents at work and occupational illness which may generate entitlement to benefits:

-       Partial permanent disability for the usual profession. It is an incapacity that, without reaching the degree of totality, leads the worker to a decrease of not less than 33 % in the normal performance for his profession, without preventing him from performing his fundamental tasks.

-       Total permanent disability for the usual profession. It is an incapacity that disqualifies the worker from performing the fundamental tasks of his profession, provided that he can engage in a different one. There is a total qualified invalidity when the worker is 55 years old and does not find work compatible with his or her physical condition.

-       Absolute permanent incapacity for all work. It is that incapacity that completely disqualifies the worker from any profession or trade.

-       Great Invalidity. It is the situation of a worker affected by a permanent disability which, as a result of anatomical or functional losses, requires another person to carry out the essential acts of life.

      With regard to survivor’s benefits, the widow’s pension is recognised regardless of whether the widow works or has her own financial resources.

Article 33

      A. All salaried workers who are covered by the relevant scheme (General or Special) of the social security system are protected by this benefit.  

D.   Article 74. Title I.

Source: Ministry of Inclusion, Social Security and Migration

Date of information: 31-XII-2018. Data on thousands of workers.

Article 34

      A. Health benefits are the same as those previously indicated in Part II.

      B. Health and pharmaceutical benefits are free of charge for recipients of benefits arising from accidents at work and occupational diseases.

      C. In cases of accidents at work and occupational illness, the health care of the Social Security pays special attention to physical rehabilitation in order to achieve a complete professional recovery of the worker.

Article 35

The National Health System and Mutuas Collaborating with Social Security carry out the professional rehabilitation of the worker in order to readapt for appropriate work persons with disabilities due to an accident at work or occupational disease.

Article 36

A. Article 65 has been used for the calculation of the benefit.

B.i.

Article 65. Title I.

A.The pension regulatory basis in cases of total permanent disability for the usual profession, absolute permanent disability for all work and Great Invalidity, is calculated on the full daily salary of the day of the accident (including ordinary payments, and the apportionment of other items such as extraordinary payments, seniority, benefits or participation in income, bonuses and additional remunerations).

B. The qualified worker who has been taken as a reference has been that of Article 65(6)(c), that is, the one who earns a salary equal to 125 percent of the average profit of all protected persons.

B.1.b. The      average gain of protected persons has been obtained through the Annual Labour Cost Survey carried out by the National Statistical Institute, which includes the amounts corresponding to total payments, including monthly payments, extraordinary payments that are prorated, payments due more than a month without prorating and late payments.

B.2.     The base time for calculating the previous gain of the qualified worker corresponds to the average wage for the year 2018.

C.   Amount of the average wage of the qualified male worker who has been chosen: EUR 2.396,17 gross per month, representing an annual amount of EUR 28.754,04.

The net salary of the assumption with 2 children is EUR 64,86/day or EUR 1.945,69/month (12,45 % retention Tax on the Income of Physical Persons and 6,35 % of Social Security contributions) which represent an annual amount of EUR 23.348,28.

Article 65.Title II.

Type beneficiary: male with wife and 2 children.

D.   Quantity of benefit in base time.

Regulatory base EUR 2.396,17/month.

Article 57(1) has been used.

Permanent disability pensions in the degree of Absolute or Great Invalidity are not subject to taxation.

E. He is not entitled to family benefits because he exceeds the income limit.

F. He is not   entitled to family benefits because he exceeds the income limit.

G. Percentage representing the wage benefit.

Article 65.Title IV.

Beneficiary: Widow with two children.

D.   Amount of benefit during base time: 52 % or 70 % of the causer’s regulatory base according to the degree of compliance with established income limits and the existence of family charges. From August 2018, the applicable percentage may increase to 56 % of the regulatory base, for pensioners aged 65 years or over and who do not receive income from work or other pensions (since 1 January 2019, it has increased to 60 %). In the present case you would be entitled to 52 % of the Regulatory Base, by exceeding the established income limits. It should also be borne in mind that, as of 1 January 2016, a maternity supplement of 5 % of the pension (2 children) has been recognised.

                                                                                                                         Regulatory basis of the type causative: EUR 2.375,72/month.

Gross amount of widow’s pension: EUR1.308,31/month.

E.  Widow is not entitled to family benefits because she exceeds the income limit.

F. Widow  is not entitled to family benefits because she exceeds the income limit.

G. Percentage of the widow’s allowance, relative to salary.

Article 65. Title V.

Beneficiary: employed woman with income equal to that of the male skilled worker.

For the purpose of calculating the benefit in this situation, it is considered that for the purpose of withholding tax on income tax, this is a beneficiary without children. Gross salary EUR 2.396,17/month.

The net salary of the case without children is EUR 62,05/day or EUR 1.861,58/month (16 % retention Tax on the Income of Physical Persons and 6,35 % of Social Security contributions) which represent an annual amount of EUR 22.339,01.

Regulatory basis: EUR 2.396,17/month.

E.   Amount of benefit.

G.Percentage of      the amount of pension with respect to salary.

Article 65.Title VI.

1.   Disability pensions for accidents at work or occupational disease have been revalued by 1,70 % as a result of successive revaluations. Firstly, Royal Decree 1079/2017 of 29 December set an increase of 0,25 per cent. Subsequently, Law 6/2018 of 3 July 2018 on Budgets for 2018 approved an additional increase of 1,35 % (Minimum and non-contributory pensions were increased by 3 % in total). Finally, Royal Decree-Law 28/2018 of 28 December, for the revaluation of public pensions and other urgent measures in social, labour and employment matters, agreed to pay 0,1 % for the deviation of the increase in pensions (1,6 %), compared with the increase in average inflation between December 2017 and November 2018.

2.

(1)Base 2016.

3.

C.   Partial permanent incapacity for the usual profession does not qualify for periodic benefit. The benefit consists of a one-time payment in the amount of 24 monthly payments from the basis governing the temporary incapacity from which it derives.

D.In addition to    the one-time payment compensation for partial permanent incapacity, in the case of invalidity in the degree of total, the periodic benefit may exceptionally be replaced by a one-time payment, provided that the worker is under the age of 60 and is applied for within three years of the date of the decision, in accordance with the following scale:

— Invalid under 54 years of age: 84 monthly allowances.

— Invalid aged 54 years or more: from 72 monthly payments at the age of 54 to 12 monthly allowances at the age of 59, on a downward scale of 12 monthly allowances per year.

PART VIII

MATERNITY BENEFITS

Article 48

A. Option (a)

B.Since the publication of Royal Decree-Law 6/2019 of 1 March, the “Birth and Child Care” benefit has been created, which covers birth leave and replaces the current maternity and paternity benefits, with a single benefit.

     Employee or self-employed workers, regardless of their sex, are entitled to economic benefit for "Birth and child care", provided that they are registered or assimilated, enjoy rest periods / birth permits and child care and prove a minimum contribution period, which in the case of being over 26 years of age is 180 days within the 7 years immediately prior to rest and 90 days paid, if they are between 21 and 26 years; if they are under the age of 21, no minimum contribution period is required.

The Royal Decree-Law establishes a transitional period until 2021, for the gradual application of the period of suspension of the employment contract by birth, adoption, placement for adoption and foster care, progressively extending the duration of the benefit: in the year 2019, 8 weeks, and in the year 2020, 12 weeks. It will be from 1 January 2021 when each parent, adopter, guardian or cosieur will enjoy the same period of suspension, 16 weeks in general (in the case of the child's disability or multiple birth, an additional duration of two weeks, one for each of the parents).However, the mother shall enjoy the entire period of suspension from the entry into force of the rule.

As from 1 January 2016, where the recipient of retirement, disability and widowhood pensions is a woman who has had 2 or more children, biological or adopted, a maternity supplement consisting of a percentage additional to the amount of the pension shall be applied to her. This percentage shall be 5 per cent for two children, 10 per cent with three children and 15 per cent for four or more children.

C. (i) Article 74. Title I.

	Males	Women	Total
A. Number of protected employees (thousands):
I. Under the General Regime	7.971,3	7.627,1	15.598,4
II.Under Special Regimes:	43,0	5,7	48,7
— Special Sea Regime Abstract Account	41,2	5,5	46,7
Special Scheme for Coal Mining	1,8	0,2	2,0
III.TOTAL	8.014,2	7.632,9	15.647,1
B. Total number of employees	8.014,2	7.632,9	15.647,1
C. % representing the total of protected employees (A.iii) in relation to the total (B)	100 %	100 %	100 %

Source: Ministry of Inclusion, Social Security and Migration

Date of information: 31-XII-2018. Data in thousands of workers

Article 50

A. Article 65 has been used for the calculation of the benefit.

B.i.

Article 65.Title I.

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

B. The qualified worker who has been taken as a reference has been that of article 65, paragraph 6 (c), i.e. earning a salary equal to 125 per cent of the average earnings of all protected persons.

B.1.b)The average gain of protected persons has been obtained through the Annual Labour Cost Survey carried out by the National Statistical Institute, which shows the amount corresponding to ordinary payments, referring to monthly amounts, including extraordinary payments that are prorated.

B.2. The  base time for calculating the earnings of the skilled worker corresponds to the average wage for the year 2018.

C. Quantity of the average wage of qualified male workers who have been elected: EUR 2.396,17 per month, representing an annual amount of EUR 28.754.04 and a daily amount of EUR 79,87.

The net salary of the case with two children is EUR 64,86/day or EUR 1.945,69/month (12,45 % retention Tax on the Income of Physical Persons and 6,35 % of Social Security contributions) which represent an annual amount of EUR 23.348,28.

Article 65. Title V.

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

D. Quantity of benefit.

G.   Percentage of gross and net benefit in relation to salary: (During the maternity rest period, the obligation to contribute remains).

Article 51

It is necessary to have a minimum contribution period of 180 days covered within the seven years immediately prior to childbirth. If this contribution period is not reached, a non-contributory benefit of 42 days is recognised.

Article 52

1. The medical  benefits referred to in article 49 are granted throughout the period of contingency.

a)    The duration of the (mother’s) allowance for        the birth and care of the child is 16 weeks, extendable in the case of multiple birth by an additional 2 weeks for each child from the second and in the case of children with disabilities.

b)    The duration of the leave for birth and care of the child coincides with that of the allowance. In addition, the contribution period is 3 years following the date of birth, in the case of a childcare leave, which shall be considered for the purposes of the recognition of different social security benefits: retirement, disability, death and survival, etc. When the father and mother work, only one of them may exercise this right.

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

PART IX

INVALIDITY BENEFITS    

Article 54

Types of permanent disability that may generate entitlement to periodic benefit:

-          Total permanent incapacity for all work. It is an incapacity that disqualifies the worker from performing the fundamental tasks of his profession, provided that he can engage in a different one. There is a total qualified invalidity when the worker is 55 years old and does not find work compatible with his or her physical condition, an increase of 20 % on the regulatory basis.

-          Absolute permanent incapacity for all work. It is that incapacity that completely disqualifies the worker from any profession or trade.

-          Great disability. The situation of a worker affected by permanent disability who, as a result of anatomical or functional losses, requires another person to carry out the essential acts of life.

Article 55

      A.  Paragraph (a) is used for protected persons in the prescribed category of employees, who make up at least 50 per cent of all employees.

      B. All salaried workers who are covered by the relevant general or special scheme of the social security system are             protected by this benefit.

      C. Article 74.     Title I.

E.   Article 74. Title I.

Source: Ministry of Inclusion, Social Security and Migration

Date of information: 31-XII-2018. Data on thousands of workers.

Article 56

A. Article 65 has been used for the calculation of the benefit.

Article 65.Title I.

A.   The basis for calculating the permanent disability benefit is obtained in different ways depending on the origin of the disability:

-      Inability due to common disease. The basis of calculation is the quotient that results from dividing the data subject’s contribution bases by 112 during the 96 months immediately prior to the month prior to the occurrence of the causation. If the required contribution period is less than 8 years, that base is obtained by dividing the sum of the monthly contribution bases corresponding under the minimum period payable by the number of months to which those bases refer and by multiplying the divisor by the coefficient 1,1666.

-          Disability due to non-work accident. The regulatory basis shall be the quotient of dividing by 28 the sum of the employee’s contribution bases, for an uninterrupted period of 24 calendar months, chosen by the person concerned within the 7 years immediately preceding the date on which the entitlement is claimed.

For the calculation of the benefit, different percentages are applied to the regulatory basis depending on the degree of disability recognised:

·         For total permanent disability, 55 per cent, which increases by 20 percentage points for non-working persons over 55 years of age.

·         For absolute permanent incapacity 100 %.

·         For large invalidity there is an additional supplement to the amount of the permanent disability 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 ceiling for this supplement is 45 % of the permanent disability pension).

·         In the case of benefits generated since 1 January 2016, where the recipient of the disability pension is a woman who has had 2 or more children, biological or adopted, a maternity supplement consisting of a percentage additional to the amount of the pension shall be applied to her. This percentage shall be 5 per cent for two children, 10 per cent with three children and 15 per cent for four or more children.                                                                                                      

B. The qualified worker who has been taken as a reference has been that of article 65, paragraph 6 (c), i.e. earning a salary equal to 125 per cent of the average earnings of all protected persons.

B.1.b.    The average gain of protected persons has been obtained from the Annual Labour Cost Survey of the National Institute of Statistics, which includes the amounts for regular payments that relate to monthly payments, including extraordinary payments that are assessed.

B.2.       The base time for calculating the previous gain of the skilled worker corresponds to the average wage for 2018.

C. Gross amount of the average wage of qualified male workers who have been elected: EUR 2.396,17 per month, representing an annual amount of EUR 28.754,04.

The net salary of the case without children is EUR 62,05/day or EUR 1.861,58/month (16 % withholding Tax on the Income of Physical Persons and 6,35 % of Social Security contributions) which represent an annual amount of EUR 22.339,01.

The net salary of the assumption with 2 children is EUR 64,86/day or EUR 1.945,69/month (12,45 % retention Tax on the Income of Physical Persons and 6,35 % of Social Security contributions) which represent an annual amount of EUR 23.348,28.

Article 65.Title II.

Type beneficiary: male with wife and two children.

D. Quantity of the assigned benefit at base time. For the purpose of determining the net pension, disability pensions in the degree of Absoluta or Great Invalidity must be considered not subject to taxation.

For common disease. Regulatory base EUR2.055,86/month.

-By accident not at work. Regulatory base EUR 2.043,42/month.

Degree of disability	Amount annual gross	IRPF retention %	Amount annual net
Total disability (55 % BR)	15.734,35	0	15.734,35
Total disability (75 % BR)	21.455,93	5,82	20.207,19
Absolute Incapacity	28.607,90	Exempt	28.607,90
Great Invalidity	41.870,55	Exempt	41.870,55

E. He is not entitled to family benefits because he exceeds the income limit.

F. He is not entitled to family benefits because he exceeds the income limit.

G. Percentage of the amount of the benefit in respect of the basic salary, in the case of common illness:

Degree of disability	In gross terms		In net terms
Total disability (55 % BR)	55,05		67,80
Total disability (75 % BR)	75,07		86,97
Absolute Incapacity	100,10		123,27
Great Invalidity	146,22		180,08

— Percentage representing the benefit in the case of a non-working accident:

Degree of disability	In gross terms		In net terms
Total disability (55 % BR)	54,72		67,39
Total disability (75 % BR)	74,62		86,55
Absolute Incapacity	99,49		122,53
Great Invalidity	145,62		179,33

Article 65.Title V.

Beneficiary: employed woman with income equal to that of the male worker.

For the purpose of calculating the benefit in this situation, it is considered that for the purpose of withholding tax on income, this is a beneficiary without children.

Gross wage amount EUR 2.396,17 per month, or EUR 28.754,04/year.

Amount of net salary (assumed without children): EUR 1.861,58/month or EUR 22339,01/year.

D. Quantity of benefit.

For common disease. Regulatory basis: EUR 2.055,86.

Degree of disability	Amount annual gross	IRPF retention %	Amount annual net
Total disability (55 % BR)	15.830,10	4,73	15.081,34
Total disability (75 % BR)	21.586,50	10,70	19.276,75
Absolute Incapacity	28.782,00	Exempt	28.782,00
Great Invalidity	42.044,66	Exempt	42.044,66

By accident not at work. Regulatory basis: EUR 2.043,42/month.

Degree of disability	Amount annual gross	IRPF retention %	Amount annual net
Total disability (55 % BR)	15.734,35	4,54	15.020,01
Total disability (75 % BR)	21.455,93	10,61	19.179,45
Absolute Incapacity	28.607,90	Exempt	28.607,90
Great Invalidity	41.870,55	Exempt	41.870,55

G. – Percentage of the amount of the benefit with respect to the basic salary, in the case of common illness.

—Percentage representing the benefit in the event of a non-work accident.

B. No use has been made of this subparagraph.

C. Article 65 is used for the revaluation of invalidity benefits.

Article 65. Title VI.

1. Permanent disability pensions have been revalued by 1,70 per cent as a result of successive revaluations. Firstly, Royal Decree 1079/2017 of 29 December set an increase of 0,25 per cent. Subsequently, Law 6/2018 of 3 July 2018 on Budgets for 2018 approved an additional increase of 1,35 % (Minimum and non-contributory pensions were increased by 3 % in total).Finally, Royal Decree-Law 28/2018 of 28 December, for the revaluation of public pensions and other urgent measures in social, labour and employment matters, agreed to pay 0,1 % for the deviation of the increase in pensions (1,6 %), compared with the increase in average inflation between December 2017 and November 2018.

2.

(1)Base 2016.

3.

Article 57

      1. When the disability is motivated by common illness, the prior period of contribution required in 2018 depends on the worker's age:

—   With less than 31 years of age: one third of the time elapsed between the date of the age of 16 and that of the event causing the pension.

—  31 or more years old: one quarter of the time elapsed between the age of 20 and the date of the causative act with a minimum of five years. At least one fifth of the required contribution period shall cover the last ten years.

            Where incapacity arises from a non-working accident, no prior contribution period is required.

Paragraphs 1 and 2 of this Article are used.

2.         In the case of a worker's common sickness disability, the calculation of the basis for the calculation of the pension is based on the monthly contribution bases for the last 8 years. If, by reason of the worker’s age, the minimum required period is lower, the calculation of the regulatory basis is similarly based on the minimum required period (sum of monthly contribution bases updated with the CPI at month 25 prior to the causative event, divided by the product ‘number of months x 14/12’).

In the case of incapacity due to a non-working accident, in the absence of a prior period of contribution, the benefit is in principle equal for paragraphs 1(a) and 2(a) of this Article 57.

In addition to the contributory disability 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 years of age.

-          Reside legally in Spanish territory and have done so for 5 years, of which 2 must be consecutive and immediately prior to the date of the application for the pension.

-          Be affected by a disability or chronic illness to a degree equal to or greater than 65%.

-          Lack of sufficient income. Insufficient income or income is considered to exist where the sum of income of the person concerned is less than the annual amount of the benefit (EUR 5.327 in 2018).

Article 58

The disability benefit is granted for the entire duration of the contingency and may be reviewed by modifications to the degree of incapacity recognised. However, permanent disability pensions will be renamed retirement pensions, when the beneficiaries reach the ordinary retirement age (at least 65 years), without this implying a change in the conditions of the benefit being received.

It may be extinguished by medical review with healing result.

PART XII

COMMON PROVISIONS

Article 70

The contents of this Annex relate to the completion of Part XIII (common provisions), Article 71 of the memorandum form of Convention No 102 on Social Security (minimum standard).The figures correspond to the year 2018, the last available settlement, which shows both the amounts of the economic benefits for the parties ratified by Spain and the level of contributions made by protected employees.

Therefore, non-contributory retirement and invalidity pensions, family protection benefits, health care and social services, which are universalised and financed by State contributions, are not included in the Act on the Consolidation and Rationalisation of Social Security, which regulates the financial flows of the social security system, so that the contributory benefits are financed mainly by social contributions, while the contribution of the State is projected with a clear delimitation of the health benefits, as well as the specific purpose of the contribution (retirement, disability, protection of the family, etc.). Since 2013, the State has assumed full funding for the pension minimum supplements, following which the first recommendation of the Toledo Pact on separation and clarification of sources of financing has been implemented within the time limit (1/1/2014) in the Fourteenth Transitional Provision of the General Social Security Act, as well as the twelfth additional provision of Law 27/2011, which affects the “special interest in the fulfilment of pension financing commitments”.

On the other hand, and in the area of health and social services, the reforms produced in the financing of the Autonomous Communities as a result of the system arising from the Agreements of the Fiscal and Financial Policy Council 2/2001 of 27 July and 6/2009 of 15 July are intended to guarantee the resources needed by those Communities, which affect the services transferred and which have an impact on health and social services fundamentally. Depending on the above-mentioned agreements, the financing will be made by the Autonomous Communities themselves from the resources derived from the taxes transferred. For this reason, the appropriations traditionally charged in the budgets of the Social Security System for these purposes disappear from the financial year 2002, both in terms of expenditure and income.

In the case of contributory benefits, funding comes from social contributions distributed between employers and workers and which, under the General Scheme and in 2018, 4,70 per cent of the worker's contribution base is deducted and the employer contributes 23,6 per cent of the contribution base. The contribution bases correspond to the wages actually received, but with the application of maximum and minimum ceilings according to occupational categories. These ceilings for the year 2018 were EUR 3.803,7/month and EUR 858,6/month respectively.

There is a special branch for accidents at work and occupational diseases, in which the premiums to cover this contingency are considered quotas and are financed exclusively by employers, depending on the activities they carry out and are therefore not included in the information provided.

The figures for the year 2018 for each of the parties ratified by Spain are as follows:

In millions of euros

Source: Economic-Financial Report to the Social Security Budget, System Accounts and Balance Sheets and Bulletin of Labour Statistics of the Ministry of Equality, Social Security and Migration.

(1)          By methodological           change, the figures correspond to 2017 and include income from unemployment (SEPE) and from the Wage Guarantee Fund.

(2)          In Spain, the contribution rate is unique and covers all benefits. The contributions of employees protected for these benefits amount to EUR 17.014,67 million.

PART XIII

MISCELLANEOUS PROVISIONS

Reference is made to the request made in the comments to Spain contained in the document of the Government Committee on the European Social Charter and the European Social Security Code of 13-17 May 2019, which contains the draft Resolutions on Supervision in the Implementation of the European Social Security Code and its Protocol (Article 74).

In paragraph III of the recommendations, it is requested that the next report of the Code include the calculations of the lump sum amounts in case of partial permanent incapacity, depending on the degree of disability and the age of the victim, which constitutes an actuarial equivalent of the benefit paid in case of total incapacity for the “customary occupation”.It is also requested, in the event that the periodic payment of the benefit is replaced by a single payment amount, to explain the measures taken by the competent authority to verify that the lump sum of expenditure on this benefit is used correctly.

According to the Spanish legislation on Partial Permanent Incapacity (IPP), it is considered that the cause is the situation in which the worker suffers a reduction of not less than 33 % in his normal performance for the usual profession, without preventing him from performing the fundamental tasks of the profession, and that he does not reach the degree of totality.

The IPP benefit consists of a lump-sum compensation amounting to 24 monthly payments from the regulatory base that was used to calculate the temporary disability allowance from which the partial permanent incapacity arises, which is paid in a single payment. In cases of partial permanent incapacity, caused under the Occupational Accidents Regulations (Decree of 22-6-56), a minimum amount is guaranteed upon reaching 65 years of age.

The perception of the benefit is compatible with the development of any work activity, both employed and self-employed, and compatible with the maintenance of the work that the worker was performing.

The following amounts would correspond to the basic case of the form of the Code, as well as the percentage represented by the Partial Permanent Incapacity in respect of the salary of a qualified worker, corresponding to article 65, paragraph 6 (c), i.e. a qualified male worker who earns a salary equal to 125 per cent of the average earnings of all employed workers in 2018, obtained from the Annual Labour Cost Survey, carried out by the National Statistics Institute, EUR 28.754,04 per month, and EUR 2.396,17 per month.

In cases of accident at work or occupational disease, the regulatory basis for the temporary disability benefit is obtained by the sum of the occupational contingency contribution base of the previous month, without overtime, divided by the number of days to which that contribution relates, and from the overtime contribution of the previous calendar year, divided by 365 days.

For the purpose of comparing the amount of the Partial Permanent Incapacity Benefit with Total Permanent Incapacity, the percentages that both represent, with respect to the average wage, are given below.

Percentage of Total and Partial Permanent Disability Benefits with respect to the basic salary, in the event of an accident at work

With regard to the measures carried out by the competent authority to ensure the proper use of the benefit, it should be noted that the management of the benefit is carried out by the National Social Security Institute (INSS) in general (the Marine Social Institute –ISM- in the case of workers of the Special Sea Regime) and that the payment is verified by the National Institute of Social Security or the Mutua Contributor with social security, where applicable, when it results from work accidents, and that it is compatible with work.

It is the responsibility of the National Social Security Institute, through the relevant bodies and at all stages of the procedure (whatever the managing or collaborating entity covering the contingency in question), to assess, qualify and review the incapacity, and to recognise the right to social security-contributory economic benefits due to permanent incapacity, to varying degrees, as well as to determine the contingencies causing it.

Madrid, 16 July 2020

Part IV. Unemployment benefit. Article 68 of the Code. Suspension of unemployment benefit.

The conclusions drawn by the Committee of Experts on the Application of the International Labour Organization’s Conventions and Recommendations as regards the implementation of the European Code of Social Security in Spain include reference to the suspension of unemployment benefits (Article 68 of the Code), specifically, due to beneficiaries’ refusal to participate in community work.

With respect to the above, they have requested ”information on the number of cases where the right to unemployment benefit has been suspended as a consequence of an unemployed worker’s refusal to participate in community work and, more specifically, the cases in which such suspension took place during the first 13 weeks of unemployment. In addition, the Committee requests that the Government provide additional information on what constitutes ‘just cause’ for refusing to participate in community work without suspension of unemployment benefit.”

On this issue, the Sub-directorate General for Unemployment Benefits of the State Public Employment Service reports the following:

Having examined the data on this issue which is available to this body, we can affirm that there is a very low number of suspensions of the right to receive unemployment benefits due to beneficiaries’ refusal to participate in community work, as reported by the regional public employment services over the past three years, with just one suspension in 2017, three suspensions in 2018 and seven in 2019. It was not possible to determine whether the suspensions took place during the first 13 weeks of payment of these benefits.

We understand that the request about what may constitute ‘just cause’ for refusing to participate should be answered by the competent Sub-Directorate General. It should be noted to this effect that community work is designed as an additional measure for the promotion of employment, in accordance with the provisions of the corresponding legislation, Royal Decree 1445/1982 of 25 June.

Notwithstanding the above, we consider that a refusal could be justified in the case that the work offered does not meet the requirements set out in Article 272.2 of the consolidated text of the General Social Security Act. In addition, we understand that when incorporating this type of work into the regulation of what is considered appropriate job placement (Article 301 of the Act), the assessment of its suitability must take into account all the circumstances set out in this article (including distance, duration and cost of travel, working hours and duration of the work), as well as “the unemployed person’s professional and personal circumstances, as well as their work-life balance, their pathway to integration, the characteristics of the job offered, the existence of means of transport for travel, as well as the characteristics of the local employment market”. Considering all these circumstances, the competent public employment service’s assessment could therefore entail that the beneficiary’s refusal would be understood to be justified.

Part VI.Benefits in the event of an accident at work. Article 36 of the Code.

The Committee of Experts requests the Government to take the necessary measures to harmonise the type and level of financial benefits in the event of permanent partial incapacity with the requirements of Articles 36 (2) and (3) of the European Code of Social Security (hereinafter ECSS).

With regard to the question raised, the Secretary of State for Social Security and Pensions reports the following:

According to article 193 of the consolidated text of the General Social Security Act, approved by Royal Legislative Decree 8/2015 of 30 October (LGSS), permanent contributory incapacity is the situation of a worker who, after having undergone the prescribed treatment, has severe anatomical or functional reductions, capable of objectively and predictably definitive determination, which diminish or nullify his/her ability to work. Such a qualification shall not preclude the recovery of the disabled person's ability to work, if this possibility is considered medically uncertain or in the long term.

Anatomical or functional reductions existing at the date of the person’s social security affiliation shall not prevent the qualification of the permanent disability situation, in the case of persons with disabilities and subsequent to membership, these reductions have been aggravated, causing either by themselves or by concurrence with new injuries or pathologies a decrease or annulment of the working capacity of the person concerned at the time of his or her affiliation.

Permanent incapacity must be derived from the situation of temporary incapacity, unless it affects those who do not have protection in respect of such temporary incapacity, either because they are in a situation similar to that of discharge that does not include it, or in cases of assimilation to employed persons in which the same circumstance occurs, or in cases of access to permanent incapacity from the non-discharge situation.

It follows from the foregoing that there is a need for a number of basic elements:

·         Have been undergoing treatment and have been medically discharged (IT situation).

·         Present severe anatomical or functional reductions.

·         These reductions are susceptible to objective determination.

·         The sequelae or ailments should be expected to be definitive.

·         Non-definitive anatomical or functional reductions.

·         As a result of injuries, there must be a decrease or annulment of work capacity.

Thus, permanent incapacity in its contributory modality not only takes into account the alteration of health but also its impact on the professional activity of those suffering from it.

Permanent disability, whatever its determining cause, shall be classified according to the following degrees:

·         Partial permanent incapacity for the usual profession.

·         Total permanent incapacity for the usual profession.

·         Absolute permanent incapacity for all work.

·         Great disability.

Taking into account that article 36 (2) of the ECSS establishes that for cases of partial loss of earning capacity that may be permanent, or the corresponding loss of power, where the benefit is economic, it must be paid periodically, it is important to focus on the first two for the purposes of this report.

In the case of total permanent incapacity (IPT) for the profession held by the person concerned or of the professional group in which he or she was included, the corresponding life pension shall be compatible with the salary that the worker may receive in the same or other company, provided that the functions do not coincide with those that gave rise to the IPT (art. 198.1 LGSS).Therefore, it establishes the compatibility in the receipt of the pension to which the IPT declaration is entitled in the usual profession with the performance of functions and activities other than those normally carried out, both in the same company or in a different company. The IPT extends not only to the profession of the person concerned, but also to the professional group in which it belongs.

On the other hand, partial permanent incapacity (PPP) for the usual profession is compatible with the development of any work activity, both for employed or self-employed and with the maintenance of the job that has been developed in the same or different company, since its qualification indicates that it does not prevent him from performing the fundamental tasks of his or her usual profession. It is paid in a one-time payment amounting to 24 monthly payments from the regulatory base that was used for the calculation of the temporary incapacity allowance from which the permanent incapacity arises.

As regards total permanent incapacity, unlike partial permanent incapacity, this is a benefit consisting of a life pension which may, exceptionally, be replaced by flat-rate compensation where the beneficiary is under 60 years of age, in accordance with the following rules, as laid down in the Ordinance laying down rules for the application and implementation of Decree 1646/72 of 23 June on benefits under the General Social Security Scheme:

-          The amount of the allowance shall be equal to the amount of eighty-four monthly pensions, provided that the beneficiary was under fifty-four years of age at the time of the application.

-          If the beneficiary is not below the above age, the amount of the compensation shall be determined according to his age at the time indicated above, in accordance with the following scale:

-          The request shall be made by the beneficiary within three years of the date of the final decision or judgment granting him the right to the pension, or if he is under the age of twenty-one on that date, within three years of the day on which he or she reaches that age.

-          In order for the substitution to be granted, the following circumstances must be met at the time of the request:

a)    It is presumed that the disability-determining injuries are not susceptible to modification which may in future lead to a review of the declared incapacity.

b)    To be proved by the beneficiary who is performing work as an employed or self-employed person, which falls within the scope of one of the schemes forming part of the social security system or, in another case, that the amount of compensation will be invested in the preparation or development of new sources of income as an self-employed person.

c)    In the last case provided for in the previous condition, it is established that he has sufficient aptitude for the exercise of the activity in question.

-          The decision recognising compensation must be issued by the Directorate-General of the National Social Security Institute, and shall be effective on the basis of the above-mentioned Resolution.

-          Once the replacement has been authorised, the beneficiary may not request that the replacement be terminated in order to recover the status of pensioner.

-          In cases where the substitution regulated in the previous number is authorised, the beneficiary shall, upon reaching the age of 60, receive the previously recognised pension, revalued with the increases that have been established for pensions of the same nature from the date on which the replacement of the pension by the compensation was authorized.

-          In the event that, before reaching the age of 60, the death of a beneficiary occurs, whose pension has been replaced by the above-mentioned compensation, death and survivor benefits may be claimed as if that beneficiary had been a pensioner at that time.

In view of the above and taking into account that Article 36(3) of the ECSS provides that periodic payments may be replaced by a one-time amount paid;

a) where the degree of incapacity is minimal or (b) when the competent authorities are guaranteed the reasonable employment of that amount, it can be concluded that the regulation contained in this article fully coincides with the legal system of the Spanish Social Security System, since the lump-sum benefit for partial permanent incapacity is compatible with the development of any work activity, both employed and self-employed, and with the maintenance of the work that has been carried out, which is why it is undoubtedly understood to be part of Article 36(3) of the ECSS. Similarly, taking into account the compatibility regime also established for total permanent incapacity, the same conclusion could be reached.

However, as far as the flat-rate financial benefit in the case of total permanent incapacity is concerned, it consists of a life pension which may, exceptionally, be replaced only at the request of the person concerned by the flat-rate benefit, but which, as has already been stated, is subject to a number of conditions which presuppose that its application is compatible with the provisions of the repeated Article 36(3)(b) of the ECSS.

As explained above, the partial permanent incapacity benefit for the usual profession is that which implies a decrease in the worker’s normal performance, resulting from injuries, but which do not reach the degree of total permanent incapacity. Partial permanent incapacity does not prevent the worker from performing the fundamental tasks of his or her profession. The recognition of this disability does not extinguish the contract with the company and can continue with its work as it is a disability compatible with any profession. Besides, it’s a non-reviewable disability. Payment is made when the incapacity is recognised and the process ends at that time. In other words, the worker receives compensation as the injuries suffered do not prevent him from continuing to pursue his usual work and receive the corresponding remuneration and therefore does not result in a pension of a life nature, given the minimum nature of the incapacity, in accordance with Article 36.3 of the European Code of Social Security.

Finally, to complement the explanation of the meaning and characteristics of the partial permanent incapacity benefit, the following section presents some practical examples.

Report on specific situations that may given rise to recognition of the partial permanent incapacity benefit

Partial permanent incapacity (PIP) for the usual profession is defined as incapacity which, without reaching the degree of totality, causes the worker a reduction of not less than 33 % in the normal performance for his profession, without preventing him from performing his or her fundamental tasks. When the Partial Permanent Incapacity derives from professional contingencies, the regulatory basis used to calculate the compensation is the worker's real salary on the date of the accident or sick leave.

Their declaration and perception is compatible with the development of any work activity, both employed and self-employed. It is also compatible with the maintenance of the work being developed.

1.    Some data

In 2018, the Directorate-General of the National Social Security Institute (INSS) processed a total of 166,327 permanent disability files, of which 58 per cent were approved.

Of the total number of approved (96,522) with some degree of incapacity or permanent non-invalid injuries (these only due to professional contingencies), 667 were qualified with the degree of partial permanent incapacity (PIP), representing 0.69 % of those approved for any contingency and 0.4 % of the total files processed.

However, if we distinguish the total records by the determining contingency we obtain the following results:

Ø  Work accident files:20,190.

-          Approved 86.7 %.

-          Of the 17,508 approved, 594 were approved with a PPI degree, which represents 3.39 %.

Ø  Occupational disease dossiers:1,485.

-          Approved 75 %.

-          Of the 1,115 approved, 9 were approved with the PPI degree, which represents 0.81 %.

Ø  Common disease dossiers:137,840.

-          Approved 54 %.

-          Of the 74,301 approved, 36 were approved with the PPI degree, which represents 0.05 %.

Ø  Non-working accident files:6,399.

-          Approved 52 %.

-          Of the 3,310 approved, 28 were approved with the PPI degree, which represents 0.85 %.

If we distinguish the injuries causing the 594 partial permanent disability benefits resulting from an accident at work, we obtain the following:

-          Fractures at various levels of predominance in upper and lower limbs:185

-          Eye injuries:70

-          Discal vertebral lesions:50

-          Synovial and tendinous injuries:47

-          Traumatic arthropathies:45

-          Amputations:36

-          Trauma at various levels:25

-          (complicated) wounds at various levels:22

-          Dislocations:18

-          Bruises:15

-          Peripheral nerve lesions:14

-          Burns:10

-          Serious sprains:8

-          Others:72

2.    Evaluation of clinical-labor situations that give rise to the qualification of partial permanent incapacity.

The Decree of 22 June 1956 approving the consolidated text of the legislation on occupational accidents and regulations for its application, in its article 37, defined partial permanent incapacity for work as "any injury which, upon discharge, leaves the worker with a futility that diminishes the capacity for the usual profession. The qualification shall take into account, in addition to the injury, the trade or profession of the injured person, considering whether they are unskilled workers or professions or trades which are mainly required by the superior members, or professions primarily using the lower members, or of trades and professions of art and the like which require good vision and high precision of hands, or of another specialized trade or profession.’

It also included as specific injuries that had to be qualified with the degree of PPI, the following:

a)    The functional loss of a foot or elements indispensable for support and progression.

b)    The loss of the complete vision of one eye, if that of the other.

c)    The loss of fingers or phalanges indispensable for the work to which the accident was engaged.

d)    Hernias as defined in Article 40 of this Regulation, which are not operable, the consequence of which, for the purpose of the work, is commensurate with the situation laid down in the second paragraph of this Article.

Although this legislation is not in force, it has continued to have some relevance in the ratings of the opinions proposed by the Incapacity Assessment Teams.

The complexity of the PPI assessment lies in the difficulty of determining the percentage of incapacity involved in the injury suffered by the worker, i.e. whether or not the injuries reach a 33 % decrease in the normal performance of the worker for his or her usual profession.

Labour performance has to undergo a noticeable decrease in order to become incapacitating, so that, without preventing the injured person from doing his job, it implies a lower quantitative or qualitative performance, or a greater penalty or danger.

Even without losing performance, an IPP must be recognised if, in order to develop their professional activity, the injured person has to employ a higher physical effort because his or her work is more painful or more dangerous. However, there is no PPI if, despite the greater difficulty in the development of its activity, injuries do not affect performance in many other jobs in the same category.

3.    Results of a retrospective study of qualified files in the INSS Provincial Directorate of Madrid en 2000 with partial permanent incapacity and their situation in 2008.

Some significant data from this study that can bring us closer to reality in these grades as PPI are:

-          The mean age of reporting was 39.7 years (54 % of cases between 26 and 45 years).Then, in general, they are young workers.

-          94 per cent were men and 6 per cent were women, possibly in relation to the determining majority contingency, which was that of an accident at work.

-          Unskilled workers and the group of craftsmen and qualified in manufacturing and mining industries account for almost two thirds of the total number of workers recognised as PPI benefits.

-          Withregard to the determining contingency:93 % corresponded to work accidents, 5 % to non-work accidents, 1 % to occupational disease and the other 1 % to common illness.

-          Regarding the diagnosis, almost half of the cases correspond to fractures in different locations, predominating those of foot bones and forearm bones, and the third place occupies eye disorders.

-          In the study, it was considered interesting to verify whether, over the three years since the PPI declaration, any procedure to review the degree of disability had been carried out.In only 27 % of the cases, applications for review were submitted, of which, in 65 %, the degree was changed, and a permanent disability was recognised in the degree of total for the usual profession.

4.    Some specific cases of declaration of partial permanent incapacity.

Case 1:

59-year-old male.Profession:mechanic-Frigorist (Official of 1st).Permanent disability file by Report Proposed by the Mutual Social Security Collaborator.

Personal background: left clavicle fracture (at age 18).Pneumonia (1997).Mild shoulder discomfort with good mobilisation prior to the accident.

Current process: on July 1, 1999, he suffered an accident at work when he precipitated from a staircase (1 metre high) with the production of fracture-smashing of L2 with left pedicle involvement and distal epiphysis fracture of both radii.The treatment performed was surgical at the level of both radii (9.07.99) and orthopaedic at the vertebral level, in addition to a specific rehabilitator.

During evolution he received medical and rehabilitative treatment for subacromial syndrome and degenerative tendinopathy of the right shoulder (no accidental relationship).In a complementary MRI study of the right shoulder, longitudinal rupture of the distal portion of the supraspinous was observed with moderate tendinous retraction without signs of muscle atrophy.

The following organizational and functional limitations were reflected in the medical synthesis report of 1 August 2000:sinking L2, 50 % of the thickness of the vertebral body, currently consolidated and without neurological deficit. Scars by Kirschner, on both tents. Joint mobility of both wrists functional. Loss of force to pressure with both hands by dynamometry (15 and 20).Decreased mobility of the right shoulder: antepulsion 170°, abduction 160°, external rotation 70°, internal rotation 45°.Hand to L5. It refers to residual lumbalgia (more in standing) and discrete pain in the right shoulder in the last degrees of the joint path.      

The decision of the provincial directorate of INSS declared a permanent incapacity to the degree of partiality due to an accident at work.

Case 2:

A 42-year-old administrative woman with managerial secretary who suffers an accident at work when she stumbled at her workplace with fall and contusion at the left hip level that produces con minute fracture of the head and femoral neck that requires implantation of total left hip prosthesis with favorable evolution, reducing discreetly painful limitation of last degrees of left hip rotations.

These sequelae are not included in the scale of permanent non-injurious injuries due to accidents at work or occupational disease, and from this point of view they are not compensable.

His residual situation allows him to continue performing his work but with greater penalty, limitation (up/down heights), forced mobility, maintained postures.

Case 3:

Construction assistant, 48 years old, with distal limb fracture of ulna and radio rights, complicated, which leaves as a sequel a limitation in the mobility of the right wrist in more than 50 %, which allows him to continue in his activity with limitations not less than 33 %, probably hinders his professional promotion, etc.

5.    Conclusions of the report on specific situations that may given rise to recognition of the partial permanent incapacity benefit.

The proposed IPP declaration by the Incapacity Assessment Teams is used in less than 1 % of these proposals, with the vast majority resulting from accidents at work. In order to qualify, what must be taken into account, in particular, is that the residual physical limitations that remain on the working person incapacitate him or her for the performance of at least 33 % of the activities of his habitual job (that 33 % does not refer to physical impairment) but can continue to perform it.

Sometimes, IPP’s statement is used to in some way compensate for injuries of a certain severity (anatomical or functional loss of an eye, loss of the thumb, the case of hip prosthesis in an administrative one) that have no place in the scale of permanent non-injurious injuries due to work accident or occupational disease, as well as to compensate for such loss in possible career advancement.

In accordance with the above, this Secretary of State for Social Security and Pensions understands that Spanish legislation complies with the provisions of articles 36 (2) and (3) of the ECSS and hopes that on this occasion, with the detailed explanation provided, the Committee of Experts of the International Labour Organization will understand this as well.

Madrid, 09 July 2020