We would like to inform you about the expected increase in social security costs for companies and employees for the coming year in Spain.
The Government has presented the General State Budget (PGE) for 2023 in which Social Security income will increase by 12.8%.
A very important part of this increase will be achieved by increasing the contributions paid by workers and employers.
The maximum contribution will rise by 8.60% from the current €4,139.40 per month to €4,495 per month (€53,940 per year).
The contribution base is the remuneration on which the contribution rates are applied to determine the amount that companies and workers contribute monthly to the Social Security for the different benefits of the system, such as the payment of pensions, temporary disability, unemployment, etc., among others.
It should be pointed out that these data are taken from the PGE presented by the Government and are pending approval once agreements have been reached with the other political forces, so there could be modifications. Nevertheless, it is very useful information that should be taken into account when preparing budgets for personnel costs for the year 2023.
By way of example, with an average contribution rate of 32.50% in 2022, the maximum contribution for the company was €16,143 per year, with a maximum contribution base of €49,672 per year, whereas with the increase in the maximum annual contribution base to €53,940, the annual contribution for the company amounts to €17,530, which represents an increase of €1,387 per year.
It should be recalled that this increase only affects those employees who in 2022 had an annual salary of more than €49,672 and in 2023 are between €49,672 and €53,940. The excess of €53,940 will continue to be exempt from social security contributions.
For employees, the impact on the net amount to be received can be up to €22.58 per month (€270.96 per year).
| Maximum contribution Month | Average Contribution rate | Contribution Month | Maximum contribution base Year | Contribution Year | |
| Year 2022 | 4,139.40 | 32.50% | 1,345.31 | 49,672.80 | 16,143.66 |
| Year 2023 | 4,495.00 | 32.50% | 1,460.88 | 53,940.00 | 17,530.50 |
| Increase | 8,60% | 115,57 | 1.386,84 |
The Labour Department of Bové Montero y Asociados will keep you informed of any new developments that may be of interest to you.
If you have any queries on this or any other subject, please get in touch with your contact person.
