Guillermo Martínez Cornago - M1A1 - CIP ETI

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Unit 6. Social Security

Human Resources Administrative Operations

1. Social Security
The purpose of Social Security is to guarantee workers, and their family members or
dependents, adequate protection in situations in which they need it (cases of illness,
accident, retirement, unemployment, orphanhood, etc.). .

Basic principles:
• Contributivity: Proportionality between what is received and what is contributed.
• Universality: Extension of protective action to all citizens.
• Intergenerational solidarity: The contributions of current workers contribute to
financing pensions .
• Equity and equal rights: Guarantee and improvement of levels of well-being through
adequate benefits.
• Cash unit: The State is the sole owner of all the resources, obligations and benefits
of Social Security.

1.1. Field of application of Social Security

In the Spanish Social Security system, for the purposes of benefits, there are two
modalities: contributory and non-contributory.

Contributory modality:
• It integrates workers, and their families, who receive and normally carry out their
activity in national territory .
• They must be included in one of these sections: employed workers, self-employed
workers (self-employed), working partners of associated work cooperatives, public
officials whether civil or military, Spaniards not resident in national territory in certain
situations, students and foreigners with residence and work permits in Spain.
Non-contributory modality:
• It includes all Spaniards residing in national territory who are not included in the
contributory modality because they have not contributed , or have done so
insufficiently, to obtain benefits.
• This modality includes health care, permanent disability and retirement benefits.

1.2. Regimes that make up Social Security

Social Security is made up of two types of regimes:

• General Regime, in which the majority of workers fall.

• Special Regimes , which include activities that, due to their nature, due to the
peculiar conditions of time and place in which they are carried out or due to the
characteristics of their production processes, must be regulated to properly apply the

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benefits of Social Security.

Regime Workers included

General Spaniards or foreigners who usually work in national territory as an employed

person and not included in any Special Regime.

Specials Sea workers, coal mining workers, self-employed or self-employed workers,

public officials, civil and military, students, other groups determined by the
Ministry of Employment.

1.3. Organizational structure of Social Security

The powers over regulations and control of Social Security are attributed to the Ministry of
Employment and Social Security.

The management of Social Security is carried out through managing entities, common
services and autonomous organizations attached to one ministry or another, as well as
through collaborating entities.

TO. Managing entities

• National Social Security Institute (INSS): It is the entity in charge of the
management and administration of economic benefits. In January 2002, powers
were transferred to the different autonomous communities.
• Institute for the Elderly and Social Services (IMSERSO): Manages disability and
retirement pensions , in their non-contributory modalities, as well as complementary
services for older people. Likewise, it is responsible for assisting internal migrations
and the social integration of refugees. The functions and services of IMSERSO are
transferred to the Autonomous Communities.

c. Associates
Collaboration in the management of Social Security is carried out by mutual insurance
companies for work accidents and occupational diseases and by companies:

Associates

Mutual They are voluntary associations of employers that manage services related
to the care of their workers in the event of accidents.

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work and occupational diseases. Mutual insurance companies cannot

generate economic benefits for their members.

Companies Mandatory
collaborate in collaboration
management
They pay benefits that are later reimbursed by Social
Security. For example, in the event of a worker's sick leave
due to a common illness or non-work accident, the employer
pays the corresponding amount and, subsequently, recovers
it through the managing entity or the employer's mutual
insurance company.

1.4. Social Security Benefits

The protective action of Social Security guarantees workers included within its field of
application and family members or similar dependents the benefits that appear in the
following table:

Agency to whom
Protected
Benefits payment
Risk
corresponds

• Healthcare. It consists of the provision of

medical and pharmaceutical services, as well
as physical recovery, prosthetics and
orthopedic services, which serve to preserve
and recover people's health.
• Temporary disability. It is the circumstance in
which workers are temporarily unable to work
and who require health care due to common or
Temporary professional illness situations. •INGESA /
disability, To be a beneficiary of the benefit, known as a subsidy, CC.AA.
illness and you must: • Mutual AT.
accident • Due to common illness. Have contributed for • Companies.
at least 180 days within the five days prior to
the medical leave.
• Due to occupational illness and accident,
whether work-related or not. There is no
minimum contribution period required.
The amount of the benefit is calculated on an amount
called the regulatory base and the amount depends
on the contingency that caused the medical leave.

• Healthcare.
• Subsidy. To obtain the subsidy you must

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be affiliated and registered or in a situation

similar to registration in Social Security and that
the mother meets the following requirements:
Maternity and ○ Under 21 years of age. No prior quote is INGESA / CC.AA.
adoption required.
○ Between 21 and 26 years old. Have
contributed 90 days in the seven years
prior to birth, adoption or foster care, or
360 in their entire working life.
○ Over 26 years old. Have 180 days of
contributions in the seven years prior to
birth, adoption or foster care, or 360 in
your entire working life.
If there is no prior contribution, a non-contributory
subsidy is recognized.

• Contributory benefit. The amount of the

benefit is calculated on an amount called the
regulatory base and the amount depends on
the contributions made during the periods
worked. It is paid to people who are legally
State Public
Unemploymen unemployed as long as they prove a minimum
Employment
t period of employment contributing to Social
Service (SEPE)
Security of 360 days. There are maximum and
minimum limits on unemployment benefits that
depend on the number of dependent children.
• Assistance subsidy . Extends unemployment
protection whenever certain situations meet.

Non-contributory benefits. Health and social assistance benefits and services, non-
contributory permanent disability pensions, retirement, supplements to minimum Social
Security pensions and other family benefits regulated in the General Social Security Law.

2. Obligations of companies with Social Security

The Social Security system has a contributory nature that is based on the financing of
employers and workers.

The employer must request his own registration , affiliate and register the workers he hires
and pay contributions for them. Subsequently, it will enter its own contributions and those
of the workers into the territorial treasuries of Social Security.

Obligations of the employer with Social Security:

• Regarding the company:

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○ Company registration ( self-employed workers must also register if they are

going to hire workers).
○ Communicate data variations and the cessation of the company's activity.
• Regarding workers:
○ Process affiliations, registrations, cancellations and data modifications.
• Contribute to Social Security.

2.1. Company registration

The employer, whether a natural or legal person, public or private, who is going to hire
workers, must request his or her own registration. It is an essential requirement prior to the
initiation of activities.

Who should
Any natural or legal person, public or private, that hires workers.
register

When Before the beginning of the activity.

Where In the General Treasury of Social Security.

Documents • Application. Printed in triplicate (TA6).

you must • Work accident policy, arranged with the INSS or with any work
provide accident mutual insurance company, in triplicate.
• Registration in the Tax on Economic Activities (IAE).
• Registration of contracted workers.
• If the entrepreneur is a natural person, he or she will attach a
photocopy of the tax identification number (NIF) or passport or
document that replaces it.
• If it is a legal entity, it will attach the deed of incorporation and NIF
of the legal representative.

2.2. Contribution account code

The code consists of eleven figures divided into three parts.

Registration number Corresponds to

Provincial code
the company and consists of seven Control code
Province order number
digits

41 0200022 02

2.4. Variation of data and cessation of the company's activity

Companies must communicate any variation that occurs in the data that was communicated
to the Territorial Treasury of Social Security within a period of six calendar days , counted
from the date on which said change occurs.

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2.6. Affiliation and registration of workers

Employers are obliged to enroll all the workers they hire in the Social Security system.

• Social Security Number

Provincial code Registration Number Control code

37 07654321 05

2.7. Registrations, cancellations and variations of data of

working people
• high

Workers must be registered each time they begin a new employment relationship, whether
with the same or a different company.

• Data decline and variation

Every time a worker ends an employment relationship, they must be terminated.

Workers' withdrawals, as well as any changes that may occur in their data, must be reported
to Social Security within six calendar days following termination of work.

2.8. Quote from companies and workers

Entrepreneurs and workers who carry out their activity on behalf of employers are obliged
to contribute to Social Security.

2.9. RED System (Electronic Data Submission)

The RED System is a service offered by the General Treasury of Social Security (TGSS) to
companies and professionals for the exchange of information and documents over the
Internet.

Services offered by the RED System:

• Company registration.
• Workers affiliation.
• Reports of registrations and cancellations of temporary disability (IT).
• Business quotes.
• Entry of fees.
• Message consultation.