Blogs in this series

Life in Culebrón is personal view of Spain and Spanish life as seen by a Briton living in a small village in Alicante province.
The other tabs link to similar blogs when I have lived in other places. The TIM magazine is an English language magazine I write articles for.

Thursday, July 26, 2007

Social Security

My boss was convinced that he paid an amount equivalent to around 45% of the salary of each of his workers in Social security payments. I was equally convinced that it could be nowhere near that amount.

On my wage slip it says I pay 12% income tax and a bit over 6% in Social Security. I guessed, that the Spanish system would be something like the UK system, with the employer making a similar contribution to the employee.

An asesor, basically an accountant, deals with the wages for the firm I work for so I went to ask them what the situation really is.

I was amazed; my boss was right. The total contribution is between 42% and 45% of salary.

It's not surprising that so many people work cash in hand in Spain.

1 comment:

Sam Lown said...

Hi Chris,

You might find this page interesting (in Spanish):

Its something I was looking up recently to fully understand the difference between "bruto", "base", "liquido", etc. when referring to wages! It mentions there a few of the costs to a company.

Take care,