Understanding Contribution Base, Payroll, and Benefits

Contribution Base Calculation

The contribution base amount, calculated monthly for each worker, is the foundation for determining both employer and employee contributions to Social Security. It's calculated as follows:

1. Base monthly contribution: This is the sum of all earnings charged to the worker in the month.
2. Extra payments: Any additional payments are added, divided by 12, and included in the base.

A rate of 6.35% is applied to this total amount to calculate the worker's monthly Social Security contribution. Different percentages are applied to calculate the company's contribution for each worker. Furthermore, all Social Security benefits are calculated based on this contribution base.

Payroll Management

Payroll is the official record of wages paid to an employee. It's a legally binding document that must be produced in duplicate. It must be signed by both the company and the worker, but the worker should only sign it upon receiving their payment.

Mandatory Payroll Information:

• Identification of the company and the worker.
• Period covered (monthly).
• Concepts and quantities earned.
• Deductions made from the employee's pay, including:
  • Withholding income tax: A percentage of gross payroll, dependent on the worker's annual income and family situation.
  • Social Security discount: Estimated by calculating the contribution base for the month. The gross amount for the employee that month is added, plus the proportion of any bonuses.

Unemployment Benefits

To qualify for unemployment benefits, you must meet these requirements:

• Be in a legal situation of unemployment, meaning you are willing and able to work but currently without work.
• Have contributed to Social Security for 12 months within the last six years.
• Request unemployment benefits within 15 days of dismissal.

Benefit Amount:

The amount is calculated by adding the contribution bases of the past 180 days and dividing by 180.

• During the first six months, you will receive 70% of that amount daily.
• After six months, you will receive 60% of that amount daily.

The duration of benefit collection ranges from 120 days (for 180 contribution days) to a maximum of 720 days.

Temporary Disability

Temporary disability refers to a situation where an individual is unable to work due to an accident or illness.

Payment Structure (Common Illness):

• Days 1-3: No payment is received (if it's the first instance of sick leave in the year).
• Days 4-20: 60% of the contribution base from the previous month is paid.
• Day 21 until hospital discharge: 75% of the previous month's contribution base is paid.

For the first 15 days, the company is responsible for this payment; after that, Social Security takes over. If the disability is due to a work-related accident or occupational disease, 75% of the contribution base is paid from the first day, always covered by Social Security.

This type of leave can last up to 12 months, renewable for another six months if a doctor believes further recovery is possible.