The Social Security accounts for 2022 have an item of 181,081 million euros, which is 5% more than this year, which will go to pay pensions, medical leave from work and maternity and paternity benefits, among others. These benefits are paid with the social contributions that employers and workers contribute and that income will grow by 9% in 2022, up to 136,345 million euros, as reflected in the Budgets. Quotas will allow finance 75% of the total budget. That is, the remaining 25% will be borne by taxes.
What is the reason for this increase in income? In the public accounts, the Government explains that “it is influenced by the rise in the maximum contribution bases by 1.7% and by the recovery of GDP expected for the year 2022”.
Currently, employers and workers contribute 28.3% of each worker’s salary to Social Security -23.6% is paid by the employer and 4.7% by the employee-; This is what is called the contribution for common contingencies. And what is collected with this contribution constitutes the main source of financing for the pension system. However, this type of contribution of 28.3% does not apply to all workers’ wages, but rather has a minimum floor and a maximum ceiling that the law sets each year. Currently, the maximum base stands at 4,070.10 euros monthly, so uncovering the contributions at their highest limit would affect those salaries that exceed 48,840 euros per year.
Today, Spanish companies are among those that pay the most employment taxes in Europe. The social contributions they represent 24% of total corporate taxes in Spain, compared to 16.7% in Germany and 11.3% in Ireland. And to almost six percentage points of average of taxes to the employment that is paid in the Europe of the Twenty-eight.