There are many workers who receive a transport bonus from their companies. If you doubt whether this should be included in the Social Security contribution base or, if on the contrary, it is excluded, this post is tailor-made for you.
The transport bonus does contribute to social security
Formerly, the transport bonus received by employees of companies was exempt when contributing to Social Security, as long as it did not exceed 20% of the IPREM (Public Indicator of Income of Multiple Effects).
But this changed in 2014 with the Labor Reform that was carried out in that same year, which modified the Article 109.2 of the General Social Security Law,which regulates those concepts that are excluded from the contribution base, becoming the plus for transport of workers a concept contributory to Social Security.
The inclusion of the plus for transport in the quotable concepts, in addition to others, was argued through the “need for action to try to enhance the stable hiring of workers,and to end the cycle of job destruction”.
In this way, if you receive a transport salary bonus as compensation for the expenses generated by the trip to the workplace, which is also known as plus distance, extra-salary plus or plus transport aid, you will have to integrate it into your contribution base.
It should also be noted that the transport bonus is also taxed to personal income tax as work performance,in the same way as the rest of the salary received on the payroll.
Other salary concepts to be integrated into the contribution base
Although the transport bonus is possibly the most important concept that must be integrated into the contribution base, due to the large number of collective agreements that contemplate it, it is not the only one.
In fact, the number of concepts that are excluded when contributing to Social Security is very small.
Salary concepts that contribute to Social Security:
- Delivery of free shares or at lower prices of the company itself. They must be integrated for the current value in the market, whereas previously only those that exceeded 12 000 euros were included.
- Childcare services,as well as any other educational expenses of the children that have been paid by the company, must contribute in full.
- Products at discounted prices for employees. Previously, up to 9 euros per day were exempt, while now they are integrated in their entirety.
- Amounts received for additional insurance premiums in the event of accidents at work, as well as for employee liability insurance or insurance premiums in the event of illness.
- Living expenses and stay. All expenses paid by the company that have been carried out in the same locality in which the workplace is located must also be integrated into the personal income tax base.
- All those amounts that have been delivered by the company to employees,such as promotional donations, will also contribute to Social Security.
Concepts not contributory to Social Security
Since the last Labor Reform, the number of concepts that are excluded from Social Security contributions has been greatly reduced.
These are the only non-contributory salary concepts:
- Severance payments for dismissal or dismissal, with the limit of the amount established by the Workers’ Statute.
- Employee study expenses.
- Ancillary Social Security benefits.
- Locomotion expenses in public transport.
- Duly justified private locomotion expenses.
- Living expenses and stay.
- Compensation for death, transfers and suspensions; with the limit of the maximum amount established in each collective agreement.
FAQs on the transport plus
⇒ Can the collection of the transport bonus be required?
An employee may only receive a salary bonus for transport if this is established by the corresponding Collective Agreement.
⇒ Is the distance bonus charged during the holidays?
This plus is offered by the company to compensate the expenses of the worker to go to his job, so on vacation, not having to go to work, you will not receive this plus. Normally it is received 11 times a year, although everything will depend on each Collective Agreement.
⇒ Is it included in the extra payments?
It should not be included in the extra payments,since these are usually received in June and December, when the transport bonus will already be included in the monthly payroll.
In short, if given the Collective Agreement of your company you receive a
plus for transport,
you will have to include it in your contribution base.
If you have any questions about it, our labor advisors will be happy to assist you and help you in everything you need.