This article is intended to clarify the most important questions for both employers wishing to register domestic staff and employees who intend to take up employment in a private household.

In 2012, Royal Decree 1620/2011 of 14 November regulated the special employment relationship applicable to domestic household services. These services include, for example, managing or looking after all or part of a household, caring for or assisting family members or other persons forming part of the domestic or family environment, childcare, gardening, driving vehicles and other similar services.

What documents do I need to hire domestic staff?

First, you must apply for a Contribution Account Code (Código Cuenta Cotización) from the Spanish General Treasury of Social Security (Tesorería General de la Seguridad Social). This number is used to identify the employer for Social Security purposes. To apply, you will need a digital certificate or Cl@ve Permanente.

You will also need the employee's identification details and a bank account from which the Social Security contributions can be collected by direct debit.

If you wish to hire a foreign national, you will also need the following documents in addition to those mentioned above:

- If the person is a national of a Member State of the European Economic Area or Switzerland, they may work provided they have an N.I.E. If they do not yet have an N.I.E., it must be obtained beforehand.

- Otherwise, the person will need a temporary residence permit with a valid work permit or a long-term residence permit.

Is it necessary to draw up an employment contract for domestic staff?

If the domestic employment relationship lasts for more than four weeks, the employment conditions must be set out in a written contract and signed by both parties. However, it is not necessary to submit the contract separately to SEPE, as registration with Social Security automatically generates a record that is entered in the SEPE database as employment contract data. The obligation to notify the employment contract is therefore deemed to have been fulfilled through registration with Social Security.

What is the minimum wage for domestic staff?

The salary of domestic employees may not be lower than the statutory national minimum wage (Salario Mínimo Interprofesional, SMI).

Is it necessary to issue a payslip?

Yes. A payslip must be issued. It must include the employee's details, the employer's details, the hours worked, the salary received and the corresponding deductions.

What costs does the employer have to pay?

The contribution rates established by the Spanish General Treasury of Social Security are as follows:

- The contribution rates for common contingencies are 23.60% for the employer and 4.70% for the employee.

- For occupational contingencies, the employer contribution rate is 1.50%.

- In addition, following the most recent reform, 5% for unemployment and 0.20% for FOGASA (Fondo de Garantía Salarial – Wage Guarantee Fund) are added.

The following table can be used to calculate the costs of hiring domestic staff:

If the agreed working time is 40 hours per week and the remuneration to be paid is €1,166.75 per month, the employer's contribution is calculated by multiplying the contribution base of €1,220 by 30.3% (23.60% + 1.50% + 5% + 0.20%), resulting in €369.66.

The total cost of employing the worker therefore amounts to €1,536.41 (€1,166.75 + €369.66).

For the entire year 2022, the employer's Social Security contribution for common contingencies under this special system is reduced by 20% when registering a domestic employee who did not perform domestic work for the same employer between 2 August and 31 December 2011.

In addition, there is a 45% reduction in the employer's contribution if the person being hired works for a large family (familia numerosa).

Are domestic employees entitled to severance pay when their employment relationship ends?

When the employment relationship is terminated, the reason for termination must be stated. The reasons for termination may include the following:

- Voluntary resignation: In the event of voluntary resignation, the employer is not required to pay severance compensation.

- Involuntary termination or dismissal: If the employment relationship is terminated without justified grounds or following the expiry of a fixed-term contract, the employee is entitled to compensation. Where justified grounds for termination exist, there is no entitlement to compensation.

- Retirement: As this constitutes voluntary termination, the employer is not required to compensate the employee.

- Death: In the event of the employee's death, the employer is not required to pay severance compensation.

If the employer dies, the employee is entitled to payment equivalent to one month's salary, regardless of the length of employment.

Furthermore, when the employment relationship ends, regardless of the reason for termination and independently of any severance compensation, the employee is entitled to a final settlement ("finiquito").

When are Social Security contributions paid?

Social Security contributions are paid at the end of the following month.

How do I register domestic staff or amend an existing registration?

Registrations and amendments can be processed through the "Importass" portal of the Spanish Social Security system.

Is it necessary to pay taxes?

The individual circumstances should always be reviewed beforehand. As a general rule, however, employers acting as private individuals are not required to withhold tax from the employee's salary.

Our firm will be pleased to assist you in analysing your individual situation, carrying out the necessary administrative procedures on your behalf and filing the relevant tax returns. If you are interested in our services or have any specific questions regarding this subject, please feel free to contact us by email or telephone.

Author:

Beatríz Alcaine
Payroll Administrator
info@sspartners.es
Tel: (+34) 951 12 13 06
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