As an entrepreneur you feel happy because you are about to realize your business idea, but you should know about the social security contributionsWell, suddenly you will realize that you need to delegate responsibilities and for obvious reasons you ask yourself that you need to hire workers, but this has a cost, do you know?
Next you will read about what it will cost you to hire a worker and everything that concerns the costs of each of the employees you hire to work in your future company …
What are the social security contributions
In fact, whether you start a business or as a freelancer you hire the help of a worker, you need to know about the social security contributions.
- In principle you should think about the gross salary of the worker, from which you will make the relevant discounts that will give rise to the net salary that is the pocket salary.
- Social Security is your responsibility as an employer and you will determine it according to the corresponding coefficients.
- In addition to this, if you do not know everything related to social contributions, payroll, employment contracts, etc. You will need to hire a legal advisor, which will also entail a cost.
How much does it cost to hire a worker
Every worker implies a cost for the company, whether it is a company or an autonomous entrepreneur, because as an entrepreneur you cannot pay your workers the salary that occurs to you, because there is a collective agreement that belongs to your province, autonomous community or commercial sector that you must respect, it is about the social security contributions.
A full working day covers 40 hours of work per week. Regarding the gross cost according to the collective bargaining agreement, which distinguishes the various sectors, they are currently:
- According to the agreement for offices and offices of the community of Madrid, a university graduate has a gross salary of 17,223 euros per year.
- According to the same agreement, an administrative assistant has a gross salary of 13,706 euros per year.
- According to the Catalan hostelry agreement, a waiter has a gross monthly salary of 1,364 euros.
- According to the Catalan supermarket agreement, a supermarket clerk has an annual salary of 12,215 euros.
These wages are minimum, so they can be higher depending on the worker’s experience and qualification, and competition in the labor market is even evaluated.
The agreements also regulate overtime and work during weekends, since in these cases there is an increase in gross salary and there may even be a transportation bonus as regulated by the agreement.
From the worker’s gross salary you must deduct:
- A withholding for IRFT, the percentage varies according to the value of the income that is deducted from the payroll and what as a company you enter the treasury every three months as part of the advance that corresponds to the worker.
It also depends on other personal factors of the worker, whether they have children or the elderly under their responsibility.
Anyway, at a gross salary of 1100 euros you must deduct 4%, a gross salary of 2000 euros receives a deduction of 13% and in a salary of 3000 euros, the deduction is 20% or higher.
- Regarding the social security that the worker is responsible for paying, 4.70% is deducted from the gross salary for common contingencies, 0.10%, for the training contribution, 1.55%, for the unemployment contribution, 1.60, for temporary contracts and ultimately the total deduction on the gross social security salary is 6.35%
- Suppose you hire an administrative assistant with a full-time permanent contract with an annual salary of 13,706 euros according to the office and offices agreement of the Madrid community, in charge of the company for social security you correspond 30.9% of the salary gross, that is, 352.87 euros.
- The total cost per month for your company will be 1494.87 euros.
- If you opened a business and hired a dependent with a temporary full-time contract, his gross salary per agreement will be 12,215 euros per year.
- In charge of the company for social security you will pay 334.59 which corresponds to 32.9% of the gross salary.
- The worker will be charged after deducting the IRPF withholdings of 4% and for social security 6.35% a total per month of 711.74.
When your company hires workers, it has an additional cost for social security that consists of:
- 23.6% of the gross salary corresponding to the contribution for common contingencies.
- 6.70% in the case of temporary contracts.
- 5.50% in the case of permanent contracts.
- According to the activity of the workers, there are contribution tables to know the percentage that corresponds to the contribution for occupational disease and accidents at work.
- For office workers it is 1%.
- For a retail business it is 1.85%.
- For cleaning and security activities it is 3.60%.
- For high-risk activities such as the construction industry or road transport companies, it is 6.70%.
- 0.20% corresponds to the contribution to Fogasa, the wage guarantee fund.
- For example, if you make a permanent contract to a full-time worker for an office job, you will deduct 30.9% from his gross salary.
- But if you make a temporary contract to the same worker, you will deduct 32.1% from his gross salary.
Contribution bases report
The contribution bases report is aimed at workers who are included in the special regimes, special systems and general regimes.
- You have an online service to receive the report with all the details of the contribution base of different settlement periods in which the registration of the Social Security regimes is recorded.
- You can check it at ede.seg-social.gob.es
- When you enter you can download it in PDF format, view it and consult it.
- If you do not have a digital certificate, you will complete the form so that you can receive the report by post.