The last Council of Ministers of the year, to be held the day after tomorrow, plans to approve a Royal Decree-Law of the so-called broom -By the number and diversity of measures included- in matters of Social Security. This text, still provisional, to which you have had access Five days, collects several novelties in terms of contributions and benefits for workers.
One of those novelties included in the draft of this Royal Decree-Law Project is to fight against precarious employment, "and more specifically against abuse in the celebration of short-term temporary contracts". For this, the Ministry of Labor has decided that "in contracts of a temporary nature whose effective duration is equal to or less than five days, the employer's Social Security contribution for common contingencies will increase by 40%."
This increase will not apply, however, to the contracts included in the Special System for Agrarian Workers, this text requires.
This is a measure that had not been announced so far and that according to this legal text, "will have a positive impact on the income of the Social Security system, as it will involve a greater collection, while it can be disincentive so that the employer resorts to this type of contracts ".
In addition, the Social Security Law will be modified to apply to the days actually worked and quoted a "temporality coefficient", which will allow the worker to gather a greater number of days in discharge for access to the benefits of the Social Security system.
Specifically, the rule will indicate that "for the purposes of proving the contribution periods necessary to cause the right to retirement benefits, permanent disability, death and survival, temporary disability, maternity and paternity, temporary contracts whose effective duration is equal or less than five days, regulated in article 151 of this law, each working day will be considered as 1.4 days of quotation ". It is a mechanism similar to that of part-time contracts.
This measure is not entirely new, since at present, contracts with a duration of less than seven days already have a surcharge of 36% on the quotation. So, now, we will try to increase the cost of four points plus those with a duration of five days or less.
According to recent studies, currently about one in four contracts signed (26%) have a duration of less than seven days. While ten years ago the weight of these short-term contracts was 15% of the total.
Fines for false self-employed
The draft Royal Decree-Law includes more measures that will affect the hiring decisions of entrepreneurs. Thus, the law will create a new infraction with its corresponding penalties for those who use the figure of the false self-employed person.
Specifically, Labor aims to avoid that, because for the first time the minimum contribution base of employees is greater than that of the self-employed, there is a transfer of the General Scheme to that of Workers on their own, turning employees into false self-employed workers. .
To discourage this possible fraudulent business maneuver, a new "very serious" infraction is created with its corresponding sanction in the Law on Infractions and Sanctions in the social order. Therefore, the employer who commits this infraction will be fined between 3.126 and 10.000 euros -depending on the seriousness of the infraction- for each worker affected.
In this way, and according to this provisional text, this new offense will be committed by "communicating the withdrawal in a Social Security scheme of employed workers even if they continue the same work activity or maintain the same service provision, using a undue discharge in a regime of self-employed workers. For these purposes, an infraction will be considered for each one of the affected workers ".
No bonuses for low accident rates
Another way for Social Security to increase their income is by suspending bonuses to companies that reduce their work-related accidents.
To this end, the Royal Decree "suspends the application of the system for reducing contributions for occupational contingencies to companies that have significantly reduced work-related accidents, as provided for in Royal Decree 231/2017, of March 10, for contributions that are generated during the year 2019. "
According to the argument of the Social Security, this measure is taken "once the distortions and disproportionate decrease in income have been verified" that the new bonuses approved in 2017 generated in the collection of the quota of professional contingencies. Moreover, this measure adds that the intention of the Government is not only to suspend these bonuses without "also, during the year 2019 will proceed to reform the aforementioned royal decree" and set these bonuses.
Rise of contribution bases
After several speculations in recent weeks by the Independent Fiscal Accountability Authority (Airef) and various members of the Government about how much would increase in 2019 the maximum contribution to Social Security, this Royal Decree confirms that a 7 %.
Thus, the rule states that "during the year 2019, the amount of the maximum limit of the Social Security contribution base in those regimes that have it established and the maximum contribution bases applicable in each of them, is established in 4,070.10 euros per month. "
While the text also confirms that the minimum contribution base "will rise the same as the interprofessional minimum wage". This is that the increase will be 22%, with which said minimum base will be thus fixed at 1,050 euros per month (12,600 euros per year).
Flat rate for the self-employed
This project of Real Dreceto-Law also includes the agreement between Work and autonomous associations to, among other things, increase the minimum contribution base of the collective by 1.25% with what is set at 944.40 euros per month. Also, the global rate of contribution of these workers will be 30% in 2019, including common, professional and cessation of activity, which become all mandatory. This also applies the improvements in benefits agreed between the Government and the self-employed.
Another novelty for the self-employed is that the flat rate during the first 12 months of activity for the workers who were already paying it and for the new ones who register in 2019 becomes 60 euros a month from January 1 next. . They will quote like this for professional contingencies but not for cessation of activity or for training.
In addition, Labor extends this flat rate to workers on their own farm, who until now did not enjoy it.
For what they will have to wait for the self-employed is to quote part-time, since this Royal Decree postpones this possibility once again.
Contribution of caregivers
The Government recovers in this norm the financing with public money of the General State Administration of the quotas of the special agreement of the non-professional carers of the people in situation of dependency.
Likewise, the unemployment benefit is recovered in the contracts for training and apprenticeships signed with working students in public employment and training programs, including the programs of workshop schools, job centers and employment workshops.
The measures included in this text of the Secretary of State for Social Security – whose urgency justifies the Government for the absence of General State Budgets for 2019 in most cases – will not be final until approved by the Council of Ministers. In fact, the Government has sent it to the employers and the unions, which will make their allegations between today and tomorrow.