Labor and social security changes in the 2016 General State Budget Law
The 2016 General State Budget Law (LPGE) was published in the Official State Gazette on October 30, 2015.
As is customary, the LPGE incorporates a series of changes with respect to labor and mainly social security matters.
In the labor area, the extension of paternity leave to four weeks has notably been deferred for another year, to January 1, 2017.
As regards social security contributions, the maximum contribution base is increased to €3,642/month for 2016, while contribution rates for common contingencies, occupational contingencies, overtime, unemployment, the Wage Guarantee Fund (FOGASA) and vocational training are maintained.
Public pensions will be revalued, in general, by 0.25%, and the same amounts are maintained as regards the Public Multi-purpose Income Indicator (IPREM).
A notable new development is the establishment of a new supplement in retirement, widowhood and permanent disability pensions (arising from January 1, 2016 onwards), for women with children, whether natural or adopted, in respect of their demographic contribution to the social security system.
Lastly, with effect from January 1, 2016, and for an indefinite term, changes are made to the regulation of the social security contribution premiums for occupational accidents and diseases. A new paragraph is introduced in order to attempt to clarify the classification of workers performing exclusively office work.
Specifically, it clarifies that salaried employees who, without being subject to the risks of the economic activity of the company, pursue their occupation solely by performing office work, even where such work corresponds to the company’s activity, will be considered to be personnel in purely office jobs, provided that such work is pursued solely in the locations used as offices of the company.
Francisco Javier Domínguez
Garrigues Labor and Employment Law Department