Contribution changes for trainees as of 1 January 2024

Among the measures of the pension reform 2023. We find the new regulation of social security for students who carry out training placements or external academic placements included in training programmes. The entry into force of this provision, initially set for 1 October 2023, has finally been delayed until 1 January 2024.

1. Students in paid and unpaid traineeships will start paying social security contributions.
2. Students undertaking training placements or external academic placements included in training programmes.
3. The contribution for these trainees will be subsidised at a rate of 95 %.
4. The protective action will be that corresponding to the applicable Social Security scheme, with the following exclusions: unemployment protection, coverage by the Wage Guarantee Fund, vocational training (the person who undertakes non-labour practices, as they do not pay contributions for these concepts, will not receive the benefits linked to them either). However:
   • In the case of unpaid internships, protection for the temporary incapacity benefit derived from common contingencies will also be excluded.
   • The economic benefits for birth and care of a child, risk during pregnancy and risk during breastfeeding will be paid by the managing entity or, where applicable, by the collaborating mutual insurance company, by direct payment from the same.
   • The benefits corresponding to the situation of temporary incapacity derived from common or professional contingencies shall be paid in all cases by means of delegated payment.
5. They do not contribute to the MEI.
6. There will be specific plans by the labour inspectorate to prevent fraud.
7. The regulation does not directly establish retroactive effects. It merely specifies the possibility of concluding a special agreement if the traineeships were carried out no more than five years before the entry into force, between 1 January 2019 and 1 January 2024.

Contributions to the Social Security system for students who carry out training placements or external academic placements included in training programmes. Until the General State Budget Law for the year 2024 is approved, the contribution for the performance of training placements or external academic placements included in training programmes will be adjusted, in said financial year, to the following rules:

• Paid training placements: the single monthly contributions for common and professional contingencies corresponding to training contracts will be applied.
• Unpaid training placements: the contribution will consist of a company contribution, for each day of training, of €2.54 for common contingencies excluding temporary incapacity benefit and €0.31 for professional contingencies, without the maximum monthly contribution for common contingencies of €57.87 and for professional contingencies of €7.03 being exceeded.
• Of the daily contribution for professional contingencies of €0.31, €0.16 corresponds to the contingency of temporary incapacity and €0.15 to the contingencies of permanent incapacity and death and survival.

Of the daily contribution for professional contingencies of 0.31 €, 0.16 € corresponds to the contingency of temporary incapacity and 0.15 € to the contingencies of permanent incapacity and death and survival.

• In both cases: The reduction of 95% will be applicable to the contributions for common contingencies.

If you have any questions regarding this subject, please do not hesitate to contact us, Paula Pablos Torrent by telephone or by email at ppt@btsasociados.com, we will be delighted to help you.