Sat. Apr 20th, 2019

Social Security will reward 155.2 million more than 120,000 companies for their low accident rate

Social Security will reward 155.2 million more than 120,000 companies for their low accident rate


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MadridUpdated:

Social Security has allocated 155.2 million euros to reward a total of 123,182 companies for its contribution to the reduction and prevention of accidents and occupational diseases in the year 2017, the Ministry of Labor has reported.

The "bonus" is an incentive for 5% of the amount of fees for professional contingencies of each company, to which an additional 5% can be applied if it invests in complementary preventive actions.

The Social Security will pay the mutuals today the incentive that results from reducing contributions due to contingencies professionals to the companies that in 2017 contributed especially to the reduction and prevention of work accidents. Subsequently, the mutual companies will pay the companies that have requested it and that meet the requirements of this incentive, the payment of which is charged to the Professional Contingency Fund.

In order to encourage all companies to improve the prevention of occupational risks, in 2010 the so-called "bonus" system was launched, which included reductions in contributions due to professional contingencies for companies with lower accident rates, norm that was modified in March of 2017.

In the field of Social Security, the contribution for professional contingencies is calculated in relation to the accident rate of the economic activity carried out by the company and the specific risks of each activity. Those companies that have a loss ratio "clearly lower" than that of its sector can benefit from the 'bonus'.

This can be requested by all companies that contribute to Social Security due to professional contingencies if they comply with the principles of preventive action established by law. In order to gain access, the company must present the application to the mutual Social Security collaborator with whom it has agreed to protection for professional contingencies.

In addition to be up to date with their Social Security obligations and not having been sanctioned, these companies must have been quoted during an observation period of up to four years with a total volume of professional contingencies exceeding 5,000 euros. The alternative is to have reached a contribution volume for professional contingencies of 250 euros in a period of observation of four exercises.

At the same time, they must be in the observation period below the limits established with respect to the general loss ratio and extreme accident rates.

Suspension of the bonus for 2019

For the year 2019, the bonus has been "suspended" under the Royal Decree-law for the revaluation of public pensions and other social and labor measures approved by the Government on December 28.

In its third additional provision, the Executive suspends the application of this system for the contributions generated during the year 2019. This suspension, states the decree, sand will extend until the Government proceeds throughout the current year to the reform of the Royal Decree of March 2017.

The Executive argues that the suspension of the 'bonus' for low claims is "essential and of extraordinary and urgent need" for the financial sustainability of the system of the Social Security «once the distortions and disproportionate decrease of income have been checked» that have generated in the quotation for professional contingencies the modifications introduced in the decree of March of 2017.

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