Understanding Social Security Contributions & Wage Deductions

Wage Receipt: Contribution Basis & Income Tax Withholding

Social Security Contribution Basis

The Social Security (SS) contribution base comprises the total compensation received, whether in cash or in kind. It also includes the share of bonuses and other amounts due that are not on a monthly or periodic basis but are paid within the year.

Common Contingencies Base (BCC)

The remuneration payable is computed, excluding overtime. It includes the share of special bonuses. The resulting amount, falling between the basic minimum and maximum base, constitutes the contribution base for common contingencies. The IPREM (Public Multiple Effects Income Indicator) values are: €523.51/month, €17.75/day, and €6,390.13/year.

Professional Contingencies & Joint Collection Base (BCCP)

This base is obtained similarly to the Common Contingencies Base. BCCP = BCCC + Overtime.

Income Tax Withholding Base (Percentage)

This is the base subject to income tax withholding.

Wage Receipt: Deductions

The most important deductions from the payroll are:

• For Common Contingencies: 4.70%
• For Unemployment: 1.55% or 1.60%
• For Vocational Training: 0.10%
• For Overtime due to Force Majeure: 2%
• For Other Overtime: 4.70%

Examination of Social Security Contributions

Both workers and employers are obligated to contribute to the General Social Security Scheme. Employers are responsible for ensuring compliance with their own contributions and those of their workers.

Duration of the Contribution Obligation

The obligation to contribute exists as long as the worker is registered or providing services, including situations of temporary disability, maternity leave, or during a probationary period.

Deadline for Entry

After the statutory period, a surcharge and late payment interest will apply. The default rate is the legal interest rate in force at the time of accrual, increased by 25%, unless otherwise stipulated by budget law.

Required Documentation

• Contribution Bulletin (TC-1)
• Nominal List of Workers (TC-2)

Place of Income

Payments must be made at a financial institution authorized as a collection office.

Payment Methods

Payment will be made by providing or submitting the required documents to the financial institution. Payments can be made by cash, check, or bank transfer.