We would like to inform you about an important incentive that can lead to significant savings in Social Security contributions, both for the company and for the employee, which affects female employees who, when they become eligible for ordinary retirement, decide to continue working.
From the date on which they become eligible for ordinary retirement, these workers who continue working will be exempt from contributing to:
- Common contingencies (except temporary disability).
- Unemployment.
- Wage Guarantee Fund (FOGASA).
- Vocational training.
Some workers do not reach the minimum number of years of contributions when they turn 65 to be entitled to exemption from contributions, but in these cases, if the so-called “periods assimilated for childbirth” were applied to them, they could retire normally and, as they continue to work, they would be entitled to exemption from contributions.
These “assimilated periods” of contribution mean that the following can be added:
- 112 days of contribution for each child.
- 14 additional days for each child after the second in the case of multiple births.
This benefit applies if the employee was not registered with Social Security or in a situation equivalent to registration at the time of giving birth.
These additional days can be decisive in enabling an employee to reach the minimum contribution threshold required for ordinary retirement and, therefore, for both the company and the employee to benefit from the exemption from contributions if she decides to continue working.
Recommended Action Protocol
To take advantage of this opportunity to exempt contributions, we propose a simple action protocol:
- Detection: Our consultancy will notify you when a female employee on your staff approaches the age of 65.
- Consultation with the employee: Once the company has been informed, we recommend that you ask the employee to inform you whether, at the birth of each of her children, she was not working and, therefore, not registered with Social Security. Provide a copy of the Family Book and an updated Work History Report.
- Notification to the Advisory Service: If the employee confirms this situation, simply notify us.
- Management: We will take care of the necessary procedures with Social Security so that these periods are recognized and included in the employee’s employment history, verifying whether this entitles her to exemption from contributions.
Implementing this simple step can generate direct economic benefits and make it easier for valuable workers to extend their professional careers in conditions that are more advantageous for everyone.
For more information, please consult with Labor Advisory Services.
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