SPAIN: New measures on the reduction of OSH contributions

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A royal decree was enacted recently to regulate the bonuses, or reductions in contributions, granted to companies which post a low incidence rate.

Here are the novelties introduced by the text adopted pursuant to the Act of 26 December 2014:

  • Compliance with the legal incidence rate indices, general and extreme, becomes an essential condition.
  • To be entitled to this incentive measure, the company must comply with a number of obligations regarding occupational risk prevention and sign a binding sworn affidavit.
  • The company’s personnel in charge of OSH must be informed of the application for a reduction in the contribution.
  • The amount of the reduction granted to each company is equivalent to 5% of the amount of its contributions due to cover occupational risks for the period in question; an additional 5% reduction may also be granted.
  • All these measures will be financed by the Social Security Fund for Occupational Risks. For each financial year, the resources that may be claimed by mutual insurance companies within this framework will be capped at 3% of the balance in the Fund.
  • Those mutual insurance companies that apply for this reduction on behalf of their member companies may receive a percentage to be agreed among the parties; the latter may in no case exceed 10% of the amount of the reduction.

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