Provisional measures on Social Security contributions for 2025

New Social Security contribution measures for 2025: General Regime

• Minimum contribution base: Pending the publication of the Royal Decree setting the Minimum Wage (SMI) for 2025, minimum contribution bases will remain provisional at 2024 levels. Once the new SMI is determined, minimum bases will automatically increase by the same percentage, plus an additional one-sixth.
• Maximum contribution base: Increases by 4%, reaching €4,909.50 per month.
• Intergenerational Equity Mechanism (MEI): Set at 0.80% of the contribution base for common contingencies, distributed as follows: 0.67% paid by the employer and 0.13% by the employee.
• New additional solidarity contribution: Applicable from January 1, 2025, on wages exceeding the maximum contribution base. The applicable rates are:
  • 0.92% on wages up to 10% above the maximum contribution base.
  • 1% on wages between 10% and 50% above the maximum contribution base.
  • 1.17% on wages exceeding 50% above the maximum contribution base.

New Social Security contribution measures for 2025: RETA (Self-Employed Workers)

• Pluriactivity: Self-employed workers who also contribute to the General Regime simultaneously may request a refund of 50% of the excess contributions for common contingencies exceeding €16,672.66, with a limit of 50% of the contributions paid in the RETA for these contingencies.
• Cooperative members: Members of cooperatives with an inter-cooperative social benefits system complementary to the public system will not be subject to contribution based on economic activity income. However, they must choose a monthly contribution base that is at least equal to the minimum base in Band 1 of the general table.

Other key labor measures in RD-Law 1/2025

• Social Security Contribution Benefits for ERTE and RED Mechanism: Contribution exemptions will be conditional on maintaining employment for affected workers for a minimum of 6 months and a maximum of 2 years after the ERTE ends.
• Extension of labor measures linked to public aid:
  • Companies receiving direct aid cannot justify dismissals due to increased energy costs until December 31, 2025. Failure to comply with this measure will result in the repayment of the aid received.
  • Companies that reduce working hours or suspend contracts due to reasons related to the invasion of Ukraine and benefit from public support cannot use these reasons to carry out dismissals.
• Bonus for hiring in non-profit amateur sports organizations: As of December 22, 2024, these organizations will receive a 100% exemption on employer contributions for common contingencies for workers acting as coaches or trainers of minors under 18. This bonus will only apply to coaches and trainers involved in non-professional sports activities.

Conclusion

RD-Law 1/2025 introduces significant changes in Social Security contributions for both employees and self-employed workers, along with other relevant labor measures. These provisions are provisional until the approval of the General State Budget Law for 2025. We will continue monitoring legislative updates to see how these measures evolve.