Background information

In order to help companies to maintain their activities and stay afloat, the government approved in those cases where the company is under a temporary collective dismissal procedure or applies reduced working time schemes, a tax exemption from social security contributions of employees.

This exemption will not have effects for the worker, that will maintain the consideration of this period as effectively worked for all purposes, and therefore all social contributions will be considered as paid.

For more information on the temporary layoff scheme see the following cases:

• Unemployment benefit guarantee in case of temporary collective dismissal or reduced working time .
• Emergency measures to speed temporary layoffs and short time work schemes for cooperatives .
• Tripartite agreement to extend the special unemployment protection scheme associated to temporary collective redundancy or short-time work regulation .

Content of measure

In the cases of suspension of contracts and reduction of working hours authorized based on temporary force majeure linked to COVID-19 defined in article 22, the General Treasury of Social Security will exempt the company from the payment of the business contribution provided in article 273.2 of the Consolidated Text of the General Law of Social Security, approved by Royal Legislative Decree 8/2015, of October 30, as well as the one regarding quotas for joint collection concepts, while the period of suspension of contracts or reduction of authorized working hours based on said cause when the company, on February 29, 2020, had fewer than 50 workers registered with Social Security.

If the company had 50 workers or more, registered with Social Security, the exemption from the obligation to contribute will reach 75% of the business contribution.

Use of measure

At the moment, there is no estimate as to the total number of companies / workers affected by temporary collective dismissals procedures or reduced working time procedures.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Applies to all businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Company / Companies Social insurance	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Direct consultation outside a formal body	Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners were not involved in designing, implementing or monitoring the measure.

Views and reactions

Social partners were consulted before the approval of the Royal Decree on this particular measure, and were supportive.

Sources

• 18 March 2020: Royal Decree-Law 8/2020, of March 17, on extraordinary and urgent measures to face the economic and social impact of COVID-19. (www.boe.es)
• 22 February 2022: Extension of measures to face vulnerabilities situaciones de vulnerabilidad social y económica (www.boe.es)