Understanding Remuneration and Social Security Contributions in Spain

Remuneration and Social Security in Spain

Assessing In-Kind Compensation

Housing:

• 10% of the property's rateable value.
• 5% over the revised rateable value (effective from January 1, 1994).
• 5% over 50% of the wealth tax value if no rateable value exists.

Vehicle:

• Delivery: Purchase cost, including taxes.
• Use: 20% of cost and charges, or if not owned, the market value of a new equivalent vehicle.

Other In-Kind Payments:

• Loans with sub-legal interest rates: The difference between the actual and legal interest.
• Meals, lodging, travel, and tourism: Employer's cost, including taxes.
• Insurance premiums and fees: Employer's cost, including taxes.
• Worker's study costs: Employer's cost, including taxes.
• Pension plan contributions and liabilities: Full amount.
• Other: Fair market value.

Social Security Contribution Base

Determining Your Quota

Covered Contingencies: Common and Professional Contingencies; Unemployment; FOGASA; FP

Additional Overtime (1.6)

This collection increases overall Social Security resources and doesn't affect benefit calculations.

Contribution Base

The contribution base for all contingencies includes total monthly remuneration, regardless of form, received by the employee or, if higher, earned but paid to another person. Fringe benefits are excluded.

Computable Concepts

• Base salary or fixed pay per unit of time or work.
• Salary supplements (personal).