Social Security: new rules on collection

The Official State Gazette (BOE) of 27 March 2024 published Royal Decree 322/2024 of 26 March, which amends the General Regulation on Social Security Collection and the General Regulation on Contributions and Settlement of Other Social Security Rights. It takes effect on 1 April 2024, with one exception: the rules on the additional solidarity contribution are incorporated with effect from 1 January 2025.

The text brings together changes of different scope. For anyone who must repay a benefit collected in error, it removes discretion in granting instalment plans. For businesses, it develops by regulation a contribution that will affect the highest pay. And for both it widens the cases in which payment of contributions must be made by bank direct debit.

Repaying undue benefits

Until now, paying benefits received in error in instalments depended on the competent body finding that the debtor’s financial situation prevented paying in one go. Under the new text, instalments can be requested within the payment period and the General Treasury will set the schedule, with a minimum of 100 euros a month and a maximum of five years. Instalments are paid by direct debit.

Revocation is also softened: authorisation to pay in instalments will be deemed revoked only if three of the instalments granted are not paid, and not just one. In enforcement, information on attached bank accounts is completed and a second auction of seized assets at a lower price than the first is allowed, following recommendations of the Court of Audit. Anyone who receives a debt claim can consider with their adviser whether to request instalments within the payment period.

Direct debit and accounts

The royal decree widens the cases in which contributions must be paid by direct debit from an account opened at an institution authorised as a collection office: it adds employees in the agricultural special scheme during periods of inactivity and those responsible for paying the special agreement with Social Security, with some exceptions.

Those already registered have a generous period, until the last day of the sixth calendar month after the entry into force, to inform the Treasury of the bank account. The measure seeks to reduce non-payment and simplify management, but obliges those affected to provide an account, so employers and agents should communicate this in good time.

The solidarity contribution

The royal decree adds an article 72 bis to the contributions regulation to apply the additional solidarity contribution created by Royal Decree-law 2/2023 of 16 March, as part of the pension reform. It applies to the portion of pay that exceeds the maximum contribution base: it is calculated on the difference between the maximum base and the base that would have applied had there been no cap, with rates by bracket that will rise gradually. It is split between employer and worker in the same proportion as common contingencies.

Employers will have to report electronically to the Treasury the data of the people affected and the amounts above the maximum base, and pay the contribution by the last day of the month following the one in which that pay is made. The Labour Inspectorate will monitor compliance and the Treasury may check and recalculate the settlements. Companies with high salaries can prepare their payroll systems in advance and review the labour-cost impact with their adviser.

A pension reform approved a year ago begins to get its implementing regulation.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.