Three laws, Royal Decree‐Law 26/2018 (Official Spanish Gazette ‘Boletín Oficial del Estado’ BOE 29/12/18), Royal Decree‐Law 28/2018 (BOE 29/12/18) and Royal Decree 1462/2018 (BOE 27/12/18) made changes to the law on pensions, contributions, benefits, minimum interprofessional salary and other labour and social matters. Below is a brief description and explanation of some of the more significant changes.
1. Pensions and public benefits
Contributory and civil service pensions have increased 1.6% from 2018.
The maximum public pension limit also increased from EUR 2,580.13 per month to EUR 2,659.41 in 2019. In annual terms, the limit increased from EUR 36,121.82 in 2018 to EUR 37,231.74 in 2019.
In order to maintain the purchasing power of pensions, recipients of pensions that were revalued in 2018 will be compensated in 2019 with a single payment for an amount equivalent to the difference between the pension received in 2018 and the pension that would have been received if the increase in the Consumer Price Index were applied
2. Social security contributions
The maximum social security contribution base for contributions to the General Social Security System increased from EUR 3,803.70 in 2018 to EUR 4,070.10 in 2019.
The contribution bases under the Special Contribution System for Domestic Workers (defined as workers who provide paid services in a domestic setting) will vary in 2019 according to the following table:
Tranche |
Gross Monthly Salary (EUR/month)* |
2019 Contribution Base (EUR) | Max. Hours Worked |
Tranche 01 |
From 0 to 240.00 |
206.00 |
34 |
Tranche 02 |
From 240.01 to 375.00 |
340.00 |
53 |
Tranche 03 |
From 375.01 to 510.00 |
474.00 |
72 |
Tranche 04 |
From 510.01 to 645.00 |
608.00 |
92 |
Tranche 05 |
From 645.01 to 780.00 |
743.00 |
111 |
Tranche 06 |
From 780.01 to 914.00 |
877.00 |
130 |
Tranche 07 |
From 914.01 to 1,050.00 |
1,050.00 |
160 |
Tranche 08 |
From 1,050.01 to 1,144.00 |
1,097.00 |
160 |
Tranche 09 |
From 1,144.01 to 1,294.00 |
1,232.00 |
160 |
Tranche 10 |
From 1,294.01 |
1,294.01 |
160 |
* Gross monthly salary includes the proportional part of any special payments
Contribution rates under the special contribution regime will be adjusted to the rates applied under the general contribution system, i.e. 28.3%. Of this amount, 23.6% corresponds to the head of household and the remaining 4.7% to the domestic worker.
Changes were also made to the special regime for self‐employed workers as follows:
| For common contingencies | 28.30% |
| For professional contingencies | 0.90% |
| Occupational Accidents and Illnesses (w/ temporary disability) |
(Premium Rate D.A. 4, Law 42/2006, of 28 December, as stated in Final Provision Five of Royal Decree‐Law 28/2018, of 28 December) |
| For cessation of activities | 0.70% |
| For professional training | 0.10% |
These rates are expected to continue increasing through 2022.
3. Reductions in contributions for low accident rates are suspended
This suspension will remain in effect until the Government amends Royal Decree 231/2017 (expected in 2019).
4. All interns will now be subject to contributions even if unpaid
The completion of an internship at a company, institution or organisation as part of a training program, including non‐labour internships (a specific subset of training internships that are legally regulated and for which specific legal requirements must be complied with) in companies and external academic internships, will require the intern to be included in the social security system, even if they are not compensated.
5. Conditions for mandatory retirement
Collective bargaining agreements can now include clauses allowing for termination of an employment contract once the worker has reached the legal retirement age established in Social Security regulations, provided the following requirements are met:
6. Amendments to the General Social Security Act
As previously mentioned, contributions by self‐employed workers for all contingencies have become mandatory.
Coverage for self‐employed workers has been improved in some respects, notably:
Temporary contracts with a term of fewer than five days will be penalised with a 40% increase in contributions for common contingencies.
7. Changes to the contributory regime for artists
Artists in public shows can still be included in the general social security regime during any periods of voluntary inactivity, provided they can prove that they effectively provided services for at least 20 days in the preceding calendar year. Payment for these days must exceed three times the Minimum Interprofessional Salary (in monthly terms).
A new regulation that would replace Royal Decree 1435/1985 on special labour relations for artists in public shows is expected to be approved before 29 June 2019.
8. Minimum Interprofessional Salary
The minimum interprofessional salary for 2019 is set at EUR 30 per day (gross) or EUR 900 per month over 14 payments (EUR 12,600.00 per year).
