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.
Hi Chris,
ReplyDeleteYou might find this page interesting (in Spanish):
http://www.asociaciones.org/cm/Guia/Textos/rrhh/nominas.htm
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,
sam.