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Social Security calculator

The social security calculator in Spain is an excel based calculator which shows the Social Security cost in Spain for the employer and the employee.

The use of the calculator is extremely simple, since you only have to input three values: the annual salary, the level of studies of the employee and the occupation, that is the business sector of the company. The annual salary must include all the items paid to the employee, whether in cash or in kind. Fixed and variable compensation must be taken into account.

The level of studies or qualifications obtained by the employee is important, because the  Social Security cost in Spain has a floor and a cap. And these vary depending on the level of studies. Please refer to our article about the Social Security cost in Spain to learn more on the subject. There are three possible values for this field, which are based on the European Qualifications Framework or “EQF”. To make things easier, just keep in mind that level 5 of the EQF is equivalent to hold a full honors degree (four years at University level). Level 4 would be equivalent to two years at the University or 120 credits at any Higher Education Institution..

The third input is the occupation. Depending on the business sector where the company operates (mining, manufacturing, trade…) the Social Security Calculator in Spain gives a different cost for the  Social Security of the employer. Basically this variation is motivated by the different risk involved in the job. The more risk (for instance, in the construction sector or fishery) the more cost. You will notice that the first three categories are office staff, cleaning staff and security staff. This means that, regardless the sector of activity of the company, if an employee is  office staff, this is the category to be selected. This makes sence, since working in an office entails the same risk whatever is the activity of the company.

We have not included all the different business activities, which are hundreds. On the contrary, we have only included the main categories (retail trade, manufacturing…) and have calculated the average contribution rate for each category. Therefore, minor differences could arise between the data showed by our Social Security Calculator in Spain and the actual data. For instance, not every manufacturing activity has exactly the same rate. But the deviation from the average for any activity of one sector  is likely to be minimal. Manufacturing clothes probably has a rate below the average, while manufacturing cars is slightly upper the average. But all in all,  the cost of Social Security in Spain shown by our calculator is a very close approximation to the actual results .

This calculator is updated at May 2018.

At Tax Partners we provide payroll services in Spain since 1996. Feel free to contact us.