Government reduces social security contributions for occupational hazards

Spain’s Cabinet has enacted a reduction in social security contributions for occupational hazards, with the aim of improving occupational safety and health. This reduction will benefit companies that are able to prove their involvement in occupational accident prevention, according to the criteria established by the government. This includes evidence of investments seeking to eliminate or minimise risks during the observation period.

Social security contributions for occupational hazards are allocated to cover occupational accidents and diseases. In this sense, they differ from other contributions designated for common diseases and non-occupational accidents.

The Spanish Strategy of Occupational Health and Safety 2007–2012 (ES0707019I), an outcome of the social dialogue process, had already considered the possibility of reducing contributions for occupational hazards for those companies capable of demonstrating a decrease in accident rates and the implementation of optimum occupational accident and risk prevention measures. As part of the strategy, the country’s Minister of Labour and Immigration, Celestino Corbacho, proposed a cut in contributions for occupational hazards, which has now been enacted by the Cabinet under Royal Decree (Real Decreto) 404/2010.

Eligibility criteria

The regulation states that companies eligible for this reduction will have paid social security contributions for occupational hazards of over €5,000 during an observation period of up to four years – these four years must be consecutive and prior to the date of application. For small businesses, contributions must exceed €250 and have been paid during the same observation period.

In addition, the companies must have made investments to upgrade facilities, processes or equipment as part of an occupational risk prevention scheme – evidence of this should be documented and quantitatively determined. Such investments should seek to eliminate or minimise risks during the observation period, proving that the company is either carrying out or has already fulfilled at least two of the following actions:

• incorporating their own risk prevention resources for staff;

• carrying out external audits of the company’s risk prevention scheme, despite having no legal obligation to do so;

• establishing road mobility plans as a measure to prevent work-related traffic accidents and accidents suffered by workers when commuting to or from work;

• accrediting a decrease in the proportion of workers exposed to occupational disease risks during the observation period;

• introducing a certificate of quality for the organisation and operation of the company’s occupational risk prevention scheme, issued by a body accredited by the National Accreditation Authority (Entidad Nacional de Acreditacion, ENAC).

Finally, companies that are not eligible for this reduction will have received an administrative sanction for serious or very serious offences regarding occupational risk prevention or social security – as categorised under the Royal Decree Law on Social Offences and Sanctions (Real Decreto Legislativo 5/2000 de Infracciones y Sanciones en el Orden Social).

Incentives and financing

The reduction incentives may reach up to 5% of the contributions for occupational hazards paid during the observation period – or up to 10% if the previous incentive corresponds to a consecutive period. In relation to small businesses, the limit has been set at €250 during the first observation period, increasing to €500 for the second and subsequent periods.

The financing of this measure will be charged to the Prevention and Rehabilitation Fund and paid for with 80% of the excess deriving from the social security system’s Industrial Accident Mutual Insurance Societies (Mutuas de Accidentes de Trabajo).

Pablo Sanz De Miguel, CIREM Foundation