Main labour aspects and novelties of the General State Budget for 2021
We analyse the labour aspects of Law 11/2020 published on 31 December 2020.
The new General State Budget was published on 31 December 2020. Below is a summary of the most relevant points at the labour level:
Contribution: Bases and Rates
RDL 38/2020, in its sixth additional provision, provided for the freezing of the Minimum Interprofessional Wage (SMI) until a subsequent agreement was reached between the Government and the different actors at the negotiating table.
For this reason, the maximum contribution base in the General Scheme for 2021 will remain at 4,070.10 euros per month and the minimum base at 1,108.33 euros. The contribution rates for 2021 also remain unchanged and are the same as in 2020:
Noteworthy is a change in the contribution in cases of compatibility of retirement and work, establishing a new special solidarity contribution of 9% on the contribution base for common contingencies (arts. 153 and 309 LGSS modified by final provision 38ª).
With regard to the Special Scheme for Self-Employed Workers, the bases are also maintained: the minimum is still 944.40 euros per month, 1214.10 euros per month for companies, and the maximum is 4,070.10 euros per month, the same as in the General Scheme.
As for the rates, the second transitional provision of Royal Decree-Law 28/2018, of 28 December, for the revaluation of public pensions and other urgent measures in social, labour and employment matters, provided for a progressive increase in the contribution rates applicable for professional contingencies and for cessation of activity for self-employed workers included in the Special Social Security Scheme for Self-Employed Workers and in the Special Social Security Scheme for Sea Workers.
Specifically, as of January it has been increased from a rate of 30.30% to one of 30.60%. To this effect:
For the contribution for professional contingencies, the contribution rate has increased from 1.1 to 1.3 per cent.
For termination of activity, the contribution rate has increased from 0.8% to 0.9%.
The contribution for common contingencies has been maintained at 28.3 per cent.
Finally, the contribution for vocational training has also been maintained at 0.1 per cent.
In practice, if a self-employed worker has been paying the minimum contribution rate, this increase in the contribution rate will mean a monthly increase of approximately three euros – he or she will pay 288.98 euros (944.40 x 30.60%) instead of 286.15 euros (944.40 x 30.30%).
With regard to the Special Scheme for Household Employees, the contribution bases for common and professional contingencies will be determined by applying the increase in the minimum interprofessional wage in 2021 to the scale of monthly salaries and the corresponding contribution base in force in 2020. Therefore, so far, there are no changes for employers.
After being frozen for several years, the IPREM (the indicator used as a reference for calculating certain benefits, e.g. for setting the minimum and maximum amounts of unemployment benefit) has been raised with effect from 1 January 2021.
Specifically, from now on, this indicator will have the following amounts:
- Daily IPREM: 18.83 euros.
- Monthly IPREM: 564.90 euros.
- Annual IPREM: 6,778.80 euros.
This means that if a worker is contributing at the maximum rate and has no children and becomes unemployed, he/she will receive a maximum benefit of 1,153.33 euros. The maximum amount of unemployment benefit is 175% of the IPREM increased by 1/6 when there are no dependent children: (564.90 + (564.90 / 6)) x 175%.
Pensions and interest rate
Contributory pensions have been revalued at the rate of 0.9% of the CPI forecast and non-contributory pensions (retirement) at 1.8% (articles 39 and 44).
The maximum monthly pension for 2021 is set at 2,707.49 euros per month.
The legal interest rate for 2021 is set at 3.00% and the interest rate for late payments at 3.75%.
Discontinuous permanent workers
With effect from 1 January 2021, companies engaged in activities within the tourism sector, as well as the commerce and hotel and catering sectors, provided that they are linked to the tourism sector, which generate productive activity in the months of February, March and November of each year and which generate productive activity in the months of February, March and November of each year and which are linked to the tourism sector, which generate productive activity in the months of February, March and November of each year and which are linked to the tourism sector, march and November of each year, and which start and/or maintain the employment of workers with fixed-discontinuous contracts during those months, may apply a rebate in those months of 50 percent of the employer’s Social Security contributions for common contingencies, as well as for the joint collection of Unemployment, FOGASA and Vocational Training for those workers.
Workers at risk during pregnancy, breastfeeding or occupational illnesses
When, due to risk during pregnancy or risk during breastfeeding, the worker is assigned to a different job or function that is compatible with her condition, a rebate of 50% of the employer’s contribution to Social Security contributions for common contingencies will be applied to the contributions accrued during the period of permanence in the new job or function.
The same rebate will be applicable in those cases in which, due to occupational illness, there is a change of job in the same company or the performance, in a different company, of a job that is compatible with the worker’s condition.
New Dual contract and changes to the Wage Guarantee Fund
The so-called dual university training contract is created, which will be formalised within the framework of the educational cooperation agreements signed by the universities with the collaborating entities and will be aimed at the professional qualification of university students through a system of alternating paid work activity in a company, which in no case will be less than the minimum interprofessional wage, with training activity received within the framework of their university training, to favour a greater relationship between this and the worker’s training and apprenticeship.
The Social Security protective action of the worker contracted for dual university training will include all protectable contingencies and benefits, including unemployment.
Finally, Article 33 of the Workers’ Statute, the Wage Guarantee Fund, is amended to include new cases and is worded as follows:
The Wage Guarantee Fund, in the cases of the previous section, shall pay compensation recognised as a consequence of a judgement, order, judicial conciliation act or administrative resolution in favour of workers due to dismissal or termination of contracts in accordance with articles 50, 51, 52, 40.1 and 41.3 of this law, and of termination of contracts in accordance with Articles 181 and 182 of Royal Legislative Decree 1/2020, of 5 May, approving the revised text of the Insolvency Act, as well as compensation for termination of temporary or fixed-term contracts in the legally applicable cases. In all cases, with the maximum limit of one year’s salary, except in the case of Article 41.3 of this regulation, where the maximum limit would be 9 monthly payments, without the daily salary, the basis for the calculation, exceeding twice the minimum interprofessional salary of the minimum interprofessional wage, including the proportional part of the extra payments.
The amount of compensation, for the sole purpose of payment by the Wage Guarantee Fund for cases of dismissal or termination of contracts in accordance with Articles 50 and 56 of this law, shall be calculated on the basis of thirty days per year of service, with the limit set in the previous paragraph.
The AddVANTE Labour Management Department remains at your disposal for further information or to resolve any queries that may arise in relation to this article.