Within the framework of the Declaration for Social Dialogue "Competitiveness, Stable Employment and Social Cohesion" signed between the Government and those responsible for business and union organizations (July 8, 2004), a series of initiatives emerge, among which is the renewal of the Social Security contribution system for work accidents and occupational diseases. The main objectives of this initiative are to avoid dysfunctions due to the obsolescence of the current system and to bring it into line with the current productive reality.

For this purpose, the Ministry of Labor and Social Affairs has prepared a draft proposal to be included in the 2007 General State Budget Bill regarding contributions for work accidents and occupational diseases. If you want to see the draft (full text)download it here.

The main aspects to highlight about the new contribution system provided for in the aforementioned draft are:

• As of January 1, 2007, the previous AT/EP Rate approved by RD 2930/1979 of December 29 completely disappears.
• In the new pricing, companies will always quote by their CNAE or main activity of the company. Going from the current system of 131 contribution headings based on the activity carried out by each worker (individually) to a system of 20 types of contribution based on the main activity of the company, without taking into account the functions performed by each worker in it.
• The company will quote based on the worker's occupation, in those cases where there is a clear and exclusive correlation with the worker's activity.(Rate table)
• The maximum contribution rate is established at 8.50% and the minimum at 0.90%, making it possible to periodically review it in order to adapt it to the evolution of the accident rate.
• Average reduction in the collection of Social Security contributions for work accidents and occupational diseases of between 4 and 5%.
• The aforementioned premium rate for work accidents and occupational diseases extends its application, in addition to the General Regime, among others, to the Special Regime for Self-Employed or Self-Employed Workers (RETA). This is perhaps the most notable novelty compared to previous drafts.

METHOD OF PROCEEDING OF THE TREASURY

The General Treasury of Social Security, in accordance with the data in its possession (CNAE declared by the company at the time of its registration or later in the event of a change of activity, and occupation of the workers), will inform companies and self-employed workers how they must contribute. To do this, and based on some tables provided by the Ministry, it will carry out a transformation of headings to worker occupations (Letters: d, e, f, g, h, i; in principle a, b and c are excluded) and CNAE of the company.

* Informative note published by the General Treasury on the Social Security website on actions to be followed by companies in relation to the new A.T. rate. download it here.

COMMUNICATION DEADLINES.

• Companies with less than 20 workers and self-employed workers and sea. In the second half of December 2006 in writing, communicating the activity and type of contribution of each registered worker.
• Rest of companies. Starting approximately January 10, companies will be able to see through the RED SYSTEM the contribution rate of each registered worker.

HOW TO ACT IN CASE OF PROBLEM?

1. If a company does not agree with the economic activity (CNAE) that has been assigned to it by the Treasury, it must contact any Provincial Directorate or Administration thereof, so that the modification can be made by providing the documents deemed appropriate.

2. In the event that there is doubt in the companies as to what type of contribution to apply (to those workers that said Organization has not been able to transform into origin, or new registrations), the companies will have to request said information from the Treasury.

3. Starting in January, companies will be able to change a worker's occupation to RED but in no case will the CNAE, which will be as established in point 1 of this section.

QUOTES.

• As of the settlement for the month of January 2007 (collection February 2007), in the TC/2 model, the heading box (which appears in the column following the N.A.F.) will be replaced by the letter of the occupation, or it will be left blank when the worker does not have a specific occupation and must contribute to the company's CNAE.
• Settlements prior to January 2007, which are entered later, will be quoted for what would have corresponded to them if they had been made at the time.