Social security contributions now payable on benefits in kind in Spain

24 October 2014

Employers in Spain must now pay social security contributions on the full value of payments in kind. With employers currently paying a basic social security rate of 23.6% this is clearly a significant change.

We are grateful to The Federation of International Employers for this report:

Employers in Spain are reminded that they must now pay social security contributions on the full value of payments in kind — for example payment through food vouchers.


Royal Decree 16/2013, of December 21st 2013, changed the social security contributions’ system regarding employee benefits. However, as this change in the law raised labour costs for employers, the Ministry of Employment delayed its implementation, setting the final deadline as September 30th. Non-compliance with the new rules may lead to an investigation by the Labour Inspectorate or sanctions being imposed.