Law 48/2015 of 29th October, of General State Budget for 2016 brings new changes to labor and social security issues. We will highlight the most significant changes.
IPREM (reference indicator for determining social benefits)
Now there are five consecutive years during which the IPREM (reference indicator for determing social benefits) remains unchanged. This is a reference value for the access to different grants and subsidies. Thus, this value is fixed daily at 17.75 euros, at 532.51 euros monthly and annually in 6390.13 euros (without extra payments) and 7455.14 euros with bonuses.
Bases and types of social contributions
►► 1. Increase of the maximum limit of the contribution base, fixed at 3642.00 per month. The minimum limit, unless expressly provided otherwise, is the amount of the minimum wage fixed for 2016, increased by one sixth. The maximum bases, whatever the professional status and contribution group during 2016, will be 3642.00 euros and 121.40 euros monthly or daily.
►► 2. The contribution rates in the general scheme of Social Security remain unchanged; and they can increase with the prices of domestic employees.
►► 3. Establishment of the RETA maximum and minimum bases. The maximum contribution base will be 3642.00 euros per month. The minimum contribution base will be 893.10 euros per month.
Social Security Benefits
►► 1. Increase to 60% of the base of the widow’s pension for pensioners with 65 years who do not receive other public pension is postponed again.
►► 2. Stays without effect for 2016 the regulation provided in the Article 2b 4 of the Organic Law 4/2000 of 11th January of the rights and freedoms of foreigners in Spain and their social integration.
►► 3. Finally, the Law 9/2009, of October 6th, which extends the duration of paternity leave in cases of birth, adoption or fostering is again modified. The extensión of paternity leave to from January 1st, 2017 is delayed.
The Social Security contributory pensions, as well as the State Passive Class pension, are revalued in 2016 by 0.25%. The amount to be received as a result of the initial targeting of public pensions, may not exceed, during 2016, the full amount of 2567.28 euros per month, without prejudice to the extra payments that may correspond to the owner, which amount will also be affected by that limit.
However, if the pensioner was entitled to receive less or more than 14 payments a year, including overtime, this monthly limit must not exceed the full annual amount of 35,941.92 euros.
What it is a novelty in the field of public services is the establishment of a new add-on maternity contributory pensions system and Social Security Passive Class pensions with effect from January 1st, 2016 and valid indefinitely; and intended for women who have had natural or adopted children and other beneficiaries in any social security scheme of contributory pensions, widowhood and permanent disability. This supplement consists of an amount equivalent to the result of applying to the initial amount of the pension a certain percentage, which will depend on the number of children.
►► 1. During 2016, salaries of the public sector staff may be increased by more than 1 percent.
►► 2. The public sector staff is allowed to recover some of the extraordinary and extra pay from December 2012, which was suppressed by application of Royal Decree-Law 20/2012 of 13th July.
►► 3. Recovery of the two bonuses for public employees in the months of June and December is consolidated.