Social Security Programs Throughout the World: Europe, 2006

Spain

Exchange rate: US$1.00 equals 0.84 euros (€).

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1919.

Current law: 1994 (social security), with 1994, 1997, 2001, 2002, and 2003 amendments.

Type of program: Social insurance system.

Note: Noncontributory pensions and in-kind complementary benefits are provided for elderly persons and disabled persons.

Coverage

Employees in industry, commerce, and services are covered according to 11 occupational classes. (Insured persons who leave covered employment may sign a special agreement in order to continue insurance coverage.)

Voluntary coverage is not possible.

Special systems for public-sector employees, armed forces personnel, self-employed persons, agricultural workers and small farmers, domestic servants, seamen, and coal miners.

Source of Funds

Insured person: 4.7% of gross earnings.

The insured's contributions also finance sickness and maternity benefits and work injury benefits.

The minimum monthly earnings for contribution purposes are €635.70 (€635.70, €731.10, or €881.10 for certain occupational classes); the minimum daily earnings for contribution purposes are €21.04.

The maximum monthly earnings for contribution purposes are €2,897.70; the maximum daily earnings for contribution purposes for certain occupational classes are €96.59.

Self-employed person: Not applicable.

Employer: 23.6% of gross earnings.

The employer's contributions also finance sickness and maternity benefits and work injury benefits.

The maximum monthly earnings for contribution purposes are €2,897.70; the maximum daily earnings for contribution purposes for certain occupational classes are €96.59.

Government: An annual subsidy.

Qualifying Conditions

Old-age pension: Age 65 with 15 years of contributions, including 2 years of contributions in the last 15 years.

The retirement age may be reduced to age 64 if the position of the retiring worker is to be taken by a person registered as unemployed. The retirement age is lower for arduous, dangerous, or unhealthy work.

Part-time employment is possible after retirement.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69; €7,384.83 with a dependent spouse.

The retirement age is reduced for disabled persons with an assessed disability of 65% or more. The normal retirement age is reduced by a period equal to 0.25% of the insured's total contribution period before the onset of the certified disability (0.5% if the disabled person requires constant attendance), and a period of the same duration is credited as a contribution period for pension calculation purposes.

Early pension for unemployed persons: Age 61 with 30 years of contributions. The insured must be involuntarily unemployed and registered as a job seeker for at least 6 months before applying for the pension. The pension is paid at a reduced rate.

Partial pension: Age 60 with 15 years of contributions, including 2 years of contributions in the last 15 years, with working time reduced to between 25% and 85% of full working time. The hours of reduced working time must be filled by a person registered as unemployed if the insured retires before age 65.

Deferred pension: The pension may be deferred if the insured has 35 years of contributions at age 65.

Benefits are payable abroad under reciprocal agreement.

Disability pension: Payable for the loss of normal earning capacity. If younger than age 26, the insured must have contributed during 50% of the period between age 16 and the onset of disability; if older than age 25, the insured must have contributed during 25% of the period from age 20 to the onset of disability and have at least 5 years of contributions, including 20% of contributions paid in the last 10 years. The insured must not qualify for an old-age pension.

A multiprofessional Team for Disability Assessment under the supervision of the National Institute of Social Security assesses and reviews the disability.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69; €7,384.83 with a dependent spouse.

Benefits are payable abroad under reciprocal agreement.

Survivor pension: The insured had 500 days of contributions in the last 5 years and died from a common illness, was a pensioner at the time of death, or had at least 15 years of contributions at the time of death.

Eligible survivors are the widow(er); children younger than age 18 (age 22 if unemployed or earning less than 75% of the minimum wage, age 24 if a full orphan and earning less than 75% of the minimum age, no limit if disabled); and, in order of priority, grandchildren, brothers and sisters younger than age 18 (no limit if disabled), parents, grandparents, and brothers or sisters older than age 45.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69.

Benefits are payable abroad under reciprocal agreement.

Old-Age Benefits

Old-age pension: The monthly pension is equal to 50% of insured earnings in the last 180 months divided by 210, plus 3% of insured earnings for each year of contributions between 16 and 25 years of contributions and 2% of insured earnings for each year of contributions exceeding 25 years, up to a maximum of 100%.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

The minimum monthly pension at age 65 is €466.98; €565.74 with a dependent spouse.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69; €7,384.83 with a dependent spouse.

The maximum monthly pension is €2,232.54 (€31,255.56 a year).

Schedule of payments: There are 14 payments a year.

Early pension for unemployed persons: The pension is reduced by 8% for each year the pension is taken before age 65 for persons with 30 years of contributions, by 7.5% with 31 to 34 years of contributions, by 7% with 35 to 37 years of contributions, by 6.5% with 38 to 39 years of contributions, or by 6% with 40 or more years of contributions.

The minimum early pension before age 65 is €435.12; €528.72 with a dependent spouse.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69; €7,384.83 with a dependent spouse.

Partial pension: A reduced pension is paid. The minimum partial pension is based on the minimum pension at age 65 and is calculated in proportion to the reduction in working time.

Deferred pension: The pension is increased by 2% for each year of deferral after age 65.

The maximum monthly deferred pension is €2,232.54 (€31,255.56 a year).

Benefit adjustment: Benefits are adjusted annually in January according to changes in the consumer price index.

Permanent Disability Benefits

Disability pension: For a 100% loss of working capacity for any type of work, the pension is equal to 100% of the insured's monthly benefit base.

Benefit base: If the disability is the result of a nonwork accident, the monthly benefit base is equal to the insured's earnings in any continuous 24-month period in the last 7 years divided by 28. If the disability is the result of a common illness and the insured is younger than age 52 at the onset of disability, the monthly benefit base is equal to the insured's earnings in the contribution period divided by 1.1666. If the disability is the result of a common illness and the insured is aged 52 or older at the onset of disability, the monthly benefit base is equal to the insured's earnings in the last 96 months divided by 112. If the disabled is not insured and the disability is the result of a nonwork accident or common illness, the monthly benefit base is equal to the insured's earnings in the last 96 months divided by 112.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

The minimum monthly pension is €466.98; €565.74 with a dependent spouse.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69; €7,384.83 with a dependent spouse.

Schedule of payments: There are 14 payments a year.

Constant-attendance supplement: Equal to 50% of the pension.

The minimum monthly pension with the constant- attendance supplement is €700.47; €848.61 with a dependent spouse.

Total permanent disability pension: For a total loss of working capacity in the usual job, the pension is equal to 55% of the insured's benefit base (see the benefit base definition, above). The pension may be increased to 75% of the benefit base if the insured is older than age 55.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

The minimum monthly pension is €435.12 if aged 60 to 64 at the onset of disability (€528.72 with a dependent spouse); €466.98 from age 65 (€565.74 with a dependent spouse).

Earnings test: The minimum pension is subject to a maximum annual earnings limit (excluding the pension) of €6,330.69; €7,384.83 with a dependent spouse.

Schedule of payments: There are 14 payments a year.

Partial permanent disability pension: For a partial loss of working capacity (at least 33%) in the usual job, a lump sum is paid equal to 24 months of the insured's daily average earnings in the last calendar month before the onset of disability.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

Benefit adjustment: Benefits are adjusted annually in January according to changes in the consumer price index.

Survivor Benefits

Survivor pension: The pension is equal to 52% of the deceased's base earnings or, if the deceased was a pensioner, 52% of the adjusted base for pension calculation purposes; 70% if there are dependent children and assessed income is below a government-set level.

The monthly base earnings are equal to the deceased's earnings in the 24 best months in the last 15 years before death, divided by 28.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

The minimum monthly pension is €347.22; €435.12 with dependent children or if aged 60 to 64; €466.98 if aged 65 or older.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69.

Schedule of payments: There are 14 payments a year.

The pension ceases on remarriage, except under certain conditions of income, age, or disability, for which a partial or full pension may continue to be paid.

If the surviving spouse was divorced or legally separated from the deceased, a reduced pension is paid calculated on the basis of the period of time that the survivor lived with the deceased.

Orphan's pension: Each orphan receives 20% of the deceased's base earnings a month.

The monthly base earnings are equal to the deceased's earnings in the 24 best months in the last 15 years before death, divided by 28.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

The minimum monthly orphan's pension is €141.18 for each orphan (€200 if disabled and younger than age 18); €488.40 is split among all eligible orphans if there is more than one; the full minimum monthly orphan's pension is €488.40.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69.

Schedule of payments: There are 14 payments a year.

The total survivor pension must not exceed 100% of the deceased's base earnings; otherwise, the widow(er) pension is paid in full and the pensions for orphans are reduced accordingly.

Other eligible survivors: If the sum of the widow(er) and orphan's pension does not exceed 100% of the deceased's base earnings, a pension is payable to other survivors according to their order of priority. The pension is equal to 20% of the deceased's base earnings, which can be increased by the widow's pension in the absence of a surviving spouse or eligible surviving children.

The monthly base earnings are equal to the deceased's earnings in the 24 best months in the last 15 years before death, divided by 28.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

The minimum monthly pension is €141.18 for each other eligible survivor. In the absence of an eligible widow or orphan, the minimum monthly pension for a single beneficiary is €363.42 if aged 65 or older (€342.18 if younger than age 65); €347.22 is split equally among several beneficiaries.

Earnings test: The maximum annual earnings (excluding the pension) of a pensioner receiving the minimum pension must not exceed €6,330.69.

The total survivor pension must not exceed 100% of the deceased's base earnings.

Schedule of payments: There are 14 payments a year.

Benefit adjustment: Benefits are adjusted annually in January according to changes in the consumer price index.

Funeral grant: €30.05 is paid.

Administrative Organization

Ministry of Labor and Social Affairs (http://www.mtas.es) provides general supervision.

General Treasury of Social Security (http://www.seg-social.es) administers the economic resources of the social security system, registers employers and insured persons, and collects contributions.

National Institute of Social Security (http://www.seg-social.es), a separate legal entity under the control of the Ministry of Labor and Social Affairs, administers and pays cash benefits.

Institute of Elderly and Social Services (http://www.seg-social.es/imserso) administers noncontributory pensions and in-kind complementary benefits for elderly persons and disabled persons.

Sickness and Maternity

Regulatory Framework

First laws: 1929 (maternity) and 1942 (sickness).

Current laws: 1994 (social security), 1997 (disability), and 2001 (maternity).

Type of program: Social insurance system. Cash and medical benefits.

Coverage

Employed persons. (Insured persons who leave covered employment may sign a special agreement in order to continue insurance coverage.)

Pensioners are covered for medical benefits.

Voluntary coverage for temporary disability is possible for self-employed persons and agricultural workers.

Special systems for public-sector employees, armed forces personnel, self-employed persons, agricultural workers and small farmers, domestic servants, seamen, and coal miners.

Source of Funds

Insured person: See source of funds under Old Age, Disability, and Survivors, above.

Self-employed person: Not applicable.

Employer: See source of funds under Old Age, Disability, and Survivors, above.

Government: An annual subsidy.

Qualifying Conditions

Cash sickness benefits: The insured must have 180 days of contributions in the last 5 years.

Cash maternity benefits: The insured must have 180 days of contributions in the 5 years before childbirth or before the official date of fostering (or adopting) a child. The adopted or fostered child must be younger than age 6 (age 18 if disabled or with assessed social or familial difficulties).

Maternity risk allowance: The benefit is paid to pregnant women with 180 days of contributions in the last 5 years before ceasing work as a result of the pregnancy and whose pregnancy is at risk. The woman is deemed unable to continue in the usual job or any similar job.

Medical benefits: Currently insured, a pensioner, or receiving periodic social security benefits. There is no minimum qualifying period.

Sickness and Maternity Benefits

Sickness benefit: The daily benefit is equal to 60% of the insured's daily average earnings in the last calendar month before the onset of the incapacity; 75% from the 21st day. The benefit is paid from the 4th day (the employer pays the benefit through the 15th day) for up to 12 months; may be extended to 18 months.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

Maternity benefit: The daily benefit is equal to 100% of the insured's daily average earnings in the last calendar month before the maternity or adoption leave period. The benefit is paid for 16 weeks (2 additional weeks are paid for the second and subsequent children).

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

If the mother does not meet the qualifying conditions but the father does, the father may receive the benefit for 10 weeks.

If both parents are employed, the benefit can be shared between the mother and the father, and the leave period may also be taken on a part-time basis.

Maternity risk allowance: The benefit is equal to 75% of the insured's earnings in the last calendar month. The benefit is paid from the day the work ceased as a result of the risk to the pregnancy.

Workers' Medical Benefits

Benefits include general and specialist care, hospitalization, medicines, dental care, laboratory services, appliances, and transportation. There may be a limit to duration in certain cases.

Previously insured workers who are no longer in insured employment may receive medical benefits up to 52 weeks, according to the number of contributions made in the last year and family status.

Medical services are provided to patients directly through the facilities of the National Health Management Institute, the regional autonomous health services, or by doctors and hospitals under contract.

Cost sharing: The patient normally pays 40% of the cost of prescribed medicines, according to the schedule in law; for some specific and chronic listed diseases, the patient pays 10% of the cost up to a maximum of €2.64 for each item. Medicines are free for pensioners and when dispensed by social security facilities. When the cost of the prescribed medicine is higher than the scheduled cost, the beneficiary pays the difference.

Dependents' Medical Benefits

Benefits include general and specialist care, hospitalization, medicines, dental care, laboratory services, appliances, and transportation. There may be a limit to duration in certain cases.

Eligible dependents include the spouse or a partner that has cohabited with the insured for at least a year, children (including adopted children), and parents. All dependents must live with the insured, be economically dependent, and satisfy an earnings test.

Previously insured workers who are no longer in insured employment may receive medical benefits up to 52 weeks, according to the number of contributions made in the last year and family status.

Administrative Organization

Ministry of Labor and Social Affairs (http://www.mtas.es) and the Ministry of Health and Consumers (http://www.msc.es/en/home.htm) provide general supervision.

General Treasury of Social Security (http://www.seg-social.es) administers the economic resources of the social security system, registers employers and insured persons, and collects contributions.

National Institute of Social Security (http://www.seg-social.es), a separate legal entity under the control of the Ministry of Labor and Social Affairs, administers and pays cash benefits.

National Health Management Institute (http://www.ingesa.msc.es), a managing entity under the control of the Ministry of Health and Consumers, operates its own medical centers.

Regional autonomous communities provide benefits through their health services.

Work Injury

Regulatory Framework

First law: 1900.

Current law: 1994 (social security).

Type of program: Social insurance system.

Coverage

Employed persons.

Voluntary coverage for public-sector employees, self-employed persons, and agricultural workers.

Exclusions: Domestic workers.

Special systems for some categories of workers.

Source of Funds

Insured person: None.

Self-employed person: Not applicable.

Employer: 0.81% to 16.2% of payroll, according to the assessed degree of risk. The average contribution rate is 1.98% of payroll.

The minimum monthly earnings for contribution purposes are €631.20.

The maximum monthly earnings for contribution purposes are €2,897.70.

Government: None.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

The daily benefit is equal to 75% of the insured's daily average earnings in the last calendar month before the onset of disability, plus the daily average earnings of the extra hours worked in the last 12 months. The benefit is payable from the day following the onset of disability for up to 12 months; may be extended to 18 months.

The minimum monthly earnings for benefit calculation purposes are €631.20.

The maximum monthly earnings for benefit calculation purposes are €2,897.70.

Permanent Disability Benefits

Permanent disability pension: For a 100% loss of working capacity in all types of work, the monthly pension is equal to 100% of the insured's earnings.

The insured's earnings are based on 1/12 of the sum of daily earnings multiplied by 365, on annual earnings from extra hours worked, and on any other earnings received in the last year.