discover what it is and its importance for your future
Understanding what the contribution base is is essential for your future if you are a Spanish citizen and worker, since it determines the contributions you have to make to the Social Security System .
Now, if you don’t know about the subject, don’t worry, we have prepared a complete guide with everything you need to know about this quote, how it is calculated, its importance, the varieties that exist and more. Let’s get started!
What is the contribution base?
The concept may seem a little complex at first, but the truth is that it is quite simple once you understand what it is used for. The contribution bases correspond to the money or gross monthly remuneration that a worker receives, whether he is an employee of a company or a self-employed person.
This includes payroll payments, as well as overtime worked, prorated extra payments and payment for unused vacations. The inclusion or not of these payments is regulated by the General Law of Social Security , specifically in its article 19.
All contributions made to the Social Security System or the uk email list Special System are based on the calculation of the contribution base, and for this very reason their importance should not be underestimated.
Varieties of contribution bases in Spain
Although they are regulated by the same laws, there are various bases for Social learn what it is, how to calculate it and its importance Security contributions that differ depending on the work you do or the professional category to which you belong.
Contribution groups in Spain are divided into professional sms to data categories, such as engineers, graduates, administrative managers, administrative officers, and laborers. For example, qualified engineers belong to Group 1, while laborers to Group 10. In this sense, depending on the group you are in, the minimum contribution base increases or decreases, as well as the amount that must be contributed to Social Security monthly.
It should be noted that if you are employed by a company, this contribution is made directly by the employer. If you are self-employed, you must make the payment yourself. This allows self-employed workers to reduce their contributions, but it may affect future benefits, such as retirement pensions.
Factors that influence the calculation of the contribution base
In addition to considering the gross income you receive each month, there are some additional factors to keep in mind before calculating the contribution bases for any employee.
First of all, you should consider the collective agreements that a company signs with its employees to determine the contribution base depending on their economic activity. In some cases, depending on the work you do, you can apply some reduction coefficients so that the final amount is lower.