Contribution bases to be applied for better structured payrolls!

If you are responsible for payroll management in your company or you are self-employed, you surely need to know the payroll benefits derived from unemployment, disability or retirement.

So that the subject does not overwhelm you, Appvizer offers you the key information you need and a solid foundation on which to rest.

🤑 Because the one who pays rests, but the one who gets paid even more, know the payroll contribution base in 2022 and get ready to calculate your payroll like a pro!

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What is the payroll contribution base?

The contribution base (different from the regulatory base), is a value reflected in the payroll of the workers. This value is used to calculate the amount that both the company and the worker will pay to the Social Security.

The contribution base includes concepts such as:

• Overtime,
• Extraordinary payments,
• paid vacations.

On the other hand, concepts that are not included in the contribution base are, for example, per diems and mileage.

Types of contribution base

In terms of contribution bases, the Social Security makes the following distinction:

• The contribution base for salaried employees,
• the contribution base for self-employed workers.

Why is it important to know the contribution base?

Knowing the contribution base is important, since it is on this that the Social Security and the State Public Employment Service (SEPE) base themselves to determine the amount that will correspond to each worker in the following situations:

• sick leave,
• unemployment,
• retirement,
• ERTE.

Where is the contribution base indicated in the payroll?

Once the company delivers the payroll to the workers (in hand or via e-mail), the information regarding the contribution bases for common and professional contingencies can be consulted directly on the payroll.

These values are generally detailed at the end of the payroll and include the percentage that the company pays to the Social Security.

Table: contribution bases and rates 2022

The contribution bases and rates for Social Security, Unemployment and Severance Protection are established in the General State Budget Law.

Contribution rates fixed as of September 2021

Excluding the self-employed, workers are divided into 11 professional categories and contribution groups. For 2022, the minimum contribution bases are maintained at the amounts established as of September 1, 2021.

The minimum and maximum contribution ceilings are defined as follows:

Source: Social Security.

Contribution to the General Regime 2022

These bases may be subject to modification and their application will be retroactive.

Now, according to the type of contribution, the following values are established for the contributions:

Source: Social Security.

Contributions for the self-employed 2022

Although the provisions contemplated in the General Regime for employees do not apply to the self-employed, they must also pay their own Social Security contribution base, based on the RETA self-employed quota.

According to the new rates applicable in 2022, the contribution bases for the self-employed are as follows:

• Minimum contribution base: 960.6 euros,
• maximum contribution base: 4,139.4 euros.

☝️ Each self-employed person can continue to use the base he/she chooses within the above range. The self-employed can also make four changes during each fiscal year.

As for the percentages by type of contribution, we have:

Different regulatory bases

Based on the values established for the contribution base of each worker, according to his or her category, it is possible to know the amounts that apply in different cases:

Unemployment benefit

In accordance with the General Social Security Law, the contribution base for unemployment will be the average of the base for which contributions have been made during the last 180 days.

2. Temporary disability benefit

The benefit received in the event of sick leave due to temporary disability is linked to the type of contingency:

• Common illness or non-occupational accident → the basis of common contingencies of the month prior to the sick leave or of the current month in case there is no room for the concept of "previous month" is taken.
• Occupational disease or occupational accident, the occupational contingency base of the month prior to the sick leave is taken.

3. Retirement benefit

Based on the base for common contingencies, it is calculated according to the last 25 years contributed by the worker.

How to know your contribution base?

An online procedure allows you to find out the contribution base of any employee or self-employed worker.

On the portal of the Social Security General Treasury dedicated to this purpose, once the person identifies himself/herself, in the section entitled "your work life", he/she can easily consult his/her contribution base.

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To sum up...

• The contribution base is a value, reflected in the payroll, that allows you to know the Social Security contributions made by both the company and the worker.
• Knowing this value, additionally, allows to calculate the benefits that a person will receive for different concepts such as:
  • The cessation of activity,
  • a sick leave that has given rise to disability (permanent or temporary),
  • retirement pension.
• The contribution bases and rates are fixed by law and are subject to modification, by means of orders, every year.
• The amounts are published in the Official State Gazette.
• To find out the contribution base, the Government has made available a portal where all the information for workers can be found.

Do you have any questions? Leave them in the comments!