Social Security contribution order (PCM/1353/2021)

On December 4, 2021, the “Order PCM/1353/2021, of December 2, which develops the legal rules for Social Security contributions, unemployment, protection for cessation of activity, Salary Guarantee Fund and Vocational Training for the 2021 financial year.”

Every year, the Government publishes a contribution order detailing the rates (%) and the minimum/maximum bases that companies must take into account for the calculation of their respective contributions for each and every one of the existing regimes in current: General Regime, Special Reg. for Self-Employed Workers, Special Reg. for Coal Mining and Special Reg. for Sea Workers.

Since when do the effects of this order apply?

Although the order comes into force the day after its publication in the “Official State Gazette”, it has retroactive effects from September 1, 2021.

What is the most relevant news regarding the previous published quote order?

With respect to the contribution bases of the General Regime, the following is established:

• The maximum limit remains unchanged: 4,070.10 euros per month.
• The minimum limit is increased and equal to the SMI: 1,125.90 euros per month.

The minimum and maximum bases applicable to each contribution group as of 09/01/2021 are the following:

Regarding the contribution for overtime, it remains unchanged.

Regarding the quote for training and learning contracts, there will be a fixed fee as of September 1, 2021 in common contingencies of 54.73 euros (45.63 euros borne by the employer and 9.10 euros borne by the worker).

Regarding the contribution rates, the same ones that have been applied until now are maintained:

• For common contingencies: 23.6% for the company and 4.70% for the worker.
• For work accidents and occupational diseases: according to the premium rate.
• Unemployment: 5,50% for the company and 1,55% for the worker, and in the case of temporary contracts, 6.7% for the company and 1.6% for the worker.
• FOGASA: 0.20% for the company.
• Vocational Training: 0.60% for the company and 0.10% for the worker.

The order also establishes the minimum and maximum bases, as well as the contribution rates, for groups included in the General Regime with specialties and for the Special Regimes. For example, significant changes appear in the minimum contribution bases of both the Special Agrarian System and the Special System for Household Employees.

The contribution bases of the Special Integrated Regime for Bullfighting Professionals remain unchanged, as well as the Regime for Self-Employed Workers, which has not undergone any changes either.

What practical effects does the publication of the new order have in the General Regime?

The quotation bases of the order establish the minimum and maximum limits by which companies must quote. Let us remember that, as of 09/01/2021, the SMI is €1,125.83/month and the minimum contribution base is €1,125.90/month. 

Therefore, since September, companies are obliged to pay, at least, a salary of 1,125.83 euros per month (SMI 2021). However, following the publication of the new order, they must quote for 1,125.90 euros. That is, workers will receive a salary, but they will contribute for a higher amount, said difference being 7 cents.

Without a doubt, it seems that everything has been a lapses of the legislator, but the legal consequences have meant an increase in the workload of consultancies and companies.

What is the deadline to regularize all of the above?

The price differences that may have occurred after the publication of the merited order may be entered without surcharge until the last day of the second month following its publication in the BOE. That is, until next February 28, 2022.

Until this date, companies will be able to regularize contributions for the months of September, October and November. For the month of December, payroll programs should adapt to the new order so that payrolls for that month are correctly quoted according to the quotation order for 2021.

All situations will have to be updated and regularized to be up to date with labor legislation and avoid any sanctions in this regard. Meanwhile, we are still awaiting the labor reform planned for before the end of the year, something that, without a doubt, will give a radical change in many labor aspects.