Royal Decree 1462/2018 establishes that the Minimum Interprofessional Salary (MIS) for 2019 will be 14 payments of 900 Euros gross monthly salary each year, which is an increase of 22.30% with respect to 2018.
Royal Decree 28/2018 introduces a whole raft of new measures for 2019, among which the following stand out:
– The minimum contribution base to the General Social Security Regime increases 22.3% (from 858.60 Euros per month to 1,050 Euros per month) and the maximum contribution base increases by 7% (from 3,803.70 Euros per month to 4,070.10 Euros per month).
– The surcharge applicable to Social Security contributions for temporary contracts of 5 days or less increases from 36% to 40%.
– Companies must register their trainees in the General Social Security Regime, even if they are not remunerated.
– The fine applicable to companies for hiring fake self-employed workers has increased to 10,000 Euros for each employee involved.
– The maximum age for employees to enter into training and apprenticeship contracts is reduced from 30 to 25 years.
– The reductions on Social Security contributions for internship contracts are repealed.
– The indefinite contract to support entrepreneurs is discontinued
– Self-employed workers will be obliged to pay mandatory coverage contributions for professional contingencies (accidents at work) and for cessation of activity (unemployment), both contingencies whose coverage was previously optional.
– The minimum cost of the flat rate contributions
applicable to self-employed workers during
the first 12 months has increased from 50 Euros per month to 60 Euros per month.
– The current contribution scheme for self-employed workers is of a provisional nature, and it is planned to replace it in 2020 with a contribution system based on real income.
– Collective bargaining agreements may introduce mandatory retirement clauses, which may only be applicable to workers who have reached the legal retirement age and are entitled to receive 100% of the retirement benefit, provided that such retirement is accompanied by generational change in the workforce, promotion of employment through the hiring of new employees or transforming temporary contracts for employees into permanent ones.
– Pensions are increased by 1.6% with respect to those that would had resulted in 2018 if an I.P.C. of 1.7% had been applied to them. This increase will be 3% (instead of 1.6%) for minimum pensions and non-contributory pensions.
– The maximum pension stands at 14 payments of 2,659.41 Euros per month (37,231.74 Euros per year), which represents an increase of 1.7% compared to the maximum pension of 2018, which was 14 payments of 2,614.96 Euros per month (36,609.44 Euros per year).
– Widowhood pensions increase from 56% to 60% for widows over 65 who do not receive income from work and do not receive any other pensions.
– The Extraordinary Unemployment Allowance is extended on a permanent basis and dissociated from the unemployment rate.
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