The Budget Law contains a number of labor and employment provisions, including the contribution bases and rates for 2022, changes to the cap on pension plan contributions, to the legal rate of interest for money and to the public multi-purpose income indicator (IPREM) for 2022, among other elements.

Spain’s General State Budget Law for 2022 (Law 22/2021, of December 28, 2021) was published in the Official State Gazette on December 29, 2021. It contains a number of changes to labor and employment and social security legislation, notably as described below:

  • As happens every year, the Budget Law determines the contribution bases and rates for social security, unemployment and business income protection, to the wage guarantee fund, and for vocational training, and it has also increased the cap on the contribution base for 2022 to €4,139.40 on a monthly basis or €137.98 on a daily basis. There are no changes to contribution rates under the general social security regime from those applicable in 2021.
  • The legal rate of interest for money has been set at 3%, and the late-payment interest rate, at 3.75%. The public multi-purpose income indicator (IPREM) will be the following amounts in 2022: the daily amount will be €19.30, monthly amount, €579.02 and annual amount, €6,948.24.
  • It changes the revised Law on Pension Plans and Funds which now provides that the aggregate cap on employers’ contributions to pension plans cannot go above €1,500. This limit will be increased by €8,500, whenever that increase comes from the employer’s contributions or employee’s contributions to the same employee benefits program in an amount equal to or higher than the respective contribution by the employer. Any amounts contributed by the employer that stem from a decision by the employee will be treated as contributions by the employee.Any own contributions that the individual employer makes to employment pension plans for which the employer is both sponsor and investor will be treated as employer contributions, for the purposes of computing this limit.
  • Article 37 of the Workers’ Statute is amended to read that reduced working hours to care for a minor suffering from cancer, or any other serious illness, may be extended up to the age of 23 where the need for direct, continuous and permanent care continues to exist. Additionally, this right to reduced working hours may be exercised by anyone who is the spouse or civil partner of the sick person.
  • Training funding based on the number of employees will be available to employers who in 2022 open new workplaces and newly created companies, where they add new employees to their workforces. Any employers who in 2022 grant individual training leave to their workers will have access to funding for additional training.
  • The law once again postpones application of the reduced contributions system for occupational contingencies for employers at which the number of occupational accidents has declined considerably
  • Employers may only obtain reductions, rebates or any other type of benefit relating to contribution bases, rates and amounts if they have no outstanding obligations with the social security authorities (including payments in respect of contributions and amounts in respect of items collected with social security contributions, as well as any other social security funds falling within collection management)