Attention Spanish professionals embarking on international assignments! A groundbreaking update to your social security has arrived. The Spanish government has enacted Order ISM/835/2023, dated July 20, 2023, redefining and reinforcing your social security rights while working abroad. Let’s unpack this vital legislation that promises to keep your welfare on par with your global ambitions.
Understanding the New Social Security Landscape:
- The Order lays out a structure that parallels registration in the Spanish Social Security System for Spanish employees working overseas.
- It aligns with article 166.3 of the consolidated text of the General Social Security Law.
Who is a ‘Displaced Worker’?
- This term is designated for employees of Spanish companies sent to work abroad, anchoring the Order’s scope.
The Four Cases Explained:
- For countries with no social security agreement with Spain, the Order ensures that these workers remain within the Spanish system’s fold.
- When an international agreement exists but does not include the worker due to nationality, this Order steps in to fill the gap.
- In nations where agreements allow for the extension of Spanish social security laws post-displacement, this Order provides a clear framework for continuation.
- This addresses scenarios where workers are in countries with agreements that do not recognize worker displacement by companies.
Ensuring Continuous Coverage:
Cases A and B – Maintaining Status Quo:
- Workers will be deemed as registered with Spanish Social Security, preserving their entitlement to a broad spectrum of benefits and necessitating ongoing contributions from both parties during the assignment.
Case C – Voluntary Extension:
- Post maximum displacement period, workers and employers can opt to extend the application of Spanish Social Security law, provided they formalize the request in time.
Case D – Elective Affiliation:
- Similar to Case C, workers may maintain their Spanish Social Security legislation affiliation through a formal request by the employer.
Operationalizing the Agreement:
For Cases C and D:
- A written agreement is required between the worker and the company to apply Spanish Social Security legislation, which must be submitted to the Social Security Treasury.
- Employers must report specifics of the displacement, including start and end dates, countries of work, and any subsequent relocations under the same contract.
Financial Aspects: Contributions and Collections:
- The Order clarifies procedures for data changes, deregistration, and contribution collections according to standard practices. It also identifies exemptions in contributions for professional contingencies and professional training.
A Closer Look at Benefits:
Protective Actions for Cases A and B:
- A wide array of benefits is assured, including subsidies for various temporary incapacities and contributory pensions.
Focusing on Cases C and D:
- The emphasis is on contributory pensions for retirement, disability, and survivorship, with the integration of international contributions.
With Order ISM/835/2023, Spain is setting a new precedent in protecting its workforce abroad. This legislation not only updates previous norms but expands the safety net for Spanish professionals worldwide, ensuring that their social and financial welfare is secured, regardless of where their job takes them.
This comprehensive guide is your starting point to understanding these changes. For those interested in exploring the intricate details of this Order, we invite you to delve into the full text available on the official bulletin.