As we have seen before, each group has a minimum and maximum contribution base. Based on this base, it is calculated how much money you will receive if you are affiliated with the following most common types of protection:
Absence due to non-occupational illness
Work-related sickness absence
Permanent disability
Withdrawal
The higher the payments you make to Social Security, the better benefits you will receive when you retire or if you have an illness that prevents you from continuing to work.
What is the method for determining which contribution group each individual belongs to?
Companies are responsible for correctly assigning the contribution group to which each of their employees belongs, since the payments that the company itself must make to Social Security and the benefits that workers receive depend on this.
In this sense, as we already mentioned, there are three fundamental factors that define which group you qualify for, which are:
According to collective agreements : In many cases, agreements are presented between workers and companies to regulate contribution groups. In this way, the restrictions that each group has can be somewhat reduced and employees obtain better benefits in the long term.
According to the employee's training : it is also necessary to consider whether a worker has a university degree or career, or whether his or her training was more empirical.
According to the employee's responsibilities : this point is complementary to the previous one, since, in addition to training, a worker can change his contribution group according to the responsibilities assigned to him in the company. The more activities he performs, the greater his benefit should be.
Now, if you want to know which group you belong to, you only have to check the Social Security website or directly see the information on your payroll at the company where you work. Remember that each employee has the right to complain if they feel that they are not assigned to the correct contribution group.
We must also highlight that there is the possibility of changing the contribution list of south korea cell phone number group to which you belong depending on your status as a worker, that is, it can vary if you change jobs or are promoted in a company, among other factors.
Contribution groups: legal and tax aspects
The classification of workers into contribution groups and the determination of the contribution bases are governed mainly by Royal Legislative Decree 8/2015 , which approves the revised text of the General Social Security Law . This law, together with the General State Budget Law and the Annual Ministerial Order, establish the rules for classifying workers and the contribution bases for each group.
Regarding the tax area, Social Security contributions are deductible, so they are not considered when filing the income tax return each year. However, it should be noted that benefits such as pensions or unemployment payments are subject to tax when making the payment of personal income tax.
For these reasons, it is extremely important that the company where you work makes a correct classification according to the activity you carry out. Remember also that each company has to make the automatic payment of the contributions to Social Security and inform its employees of the contributions that apply.
What are the distinctions between contribution groups and job classifications?
These are very similar concepts, and that is precisely why they are often confused. Job classifications represent a way of organizing employees according to the agreements or collective bargaining agreements they have with the company where they work.
Unemployment or unemployment benefits
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