Household employees will pay unemployment contributions as from October 1. A further step forward with this reform in the equalization of the working conditions and Social Security of this group with the approval of RDL 16/2022, of September 6.
The new regulation ratifies ILO Convention 189 on domestic workers and thus regularizes access to unemployment benefits. It also establishes the employer’s contribution to the Wage Guarantee Fund, which will also be mandatory as from October 1. From now on, domestic workers will be able to receive compensation in the event of insolvency.
Household employees will pay unemployment contributions
Household employees will pay unemployment contributions, although the new regulations will not have retroactive effects. However, the contribution will be increased with effect from October 1, for unemployment contributions. It will be 6.05% (of the contribution base) of which 5% will be paid by the employer and 1.05% by the employee. Likewise, contributions to the Wage Guarantee Fund will be increased to 0.2% to be paid exclusively by the employer.
On the other hand, this new reform regulates that the employment contract will be presumed to be entered into for an indefinite term and full time in the absence of a written agreement. It thus eliminates the previously established four-week term.
In terms of contribution benefits, the right to a 20% reduction in the employer’s contribution to the Social Security contribution for common contingencies corresponding to the Special System for Household Employees established in said regime is maintained.
In addition, it recognizes the right to an 80% reduction in the employer’s contribution to the unemployment contribution. And to the Wage Guarantee Fund in that Special System.
How it affects large families
This reform abolishes the allowance for hiring caregivers in large families. As of April 1, 2023, Article 9 of Law 40/2003 and Article 5 of its regulation (RD 1621/2005) will be repealed. Which regulates the 45% rebate on Social Security contributions for hiring caregivers in large families. And it establishes a transitory regime for the bonuses that were being applied at that date.
The bonuses for the hiring of caregivers in large families that were being applied on April 1, 2023, in the terms foreseen in article 9 of Law 40/2003, of protection to the large families, will maintain their validity until the date of effects of the cancellation of the caregivers that give right to the same ones in the General Regime of the Social Security. Such bonuses will be incompatible with the reduction in the contribution foreseen in the regulation.
As an alternative to the reduction foreseen in the first paragraph of the previous section, the employers who register in the General Regime of the Social Security a person working in the service of the household, from the entry into force of this section, will be entitled, during the whole situation of registration in the above mentioned regime, to a bonus of 45% or 30% in the company contribution to the contribution to the Social Security for common contingencies corresponding to the Special System for Household Employees established in the same one. When they fulfill the requirements of patrimony and/or income of the family unit or of cohabitation of the employer in the terms and conditions that are established by regulation.
The following deductions may also be applicable:
- Deductions in the Social Security contribution established in article 2.2 of Law 43/2006 for the improvement of growth and employment. Hiring people with disabilities
- Deductions on social security contributions established in Royal Decree-Law 11/1998, which regulates the rebates on social security contributions for interim contracts entered into with unemployed persons to replace workers during maternity, adoption and foster care leave periods.
- Finally, the deductions in the social security contribution established in the second DA of Law 12/2001 of urgent measures for the reform of the labor market. Social Security contribution rebates for workers on maternity leave, adoption, foster care, risk during pregnancy, risk during breastfeeding or paternity leave.
The exclusions that could be established for labor relations of a special nature are not applicable to them.
Prevention of occupational risks
This group is included in the Occupational Risk Prevention Law. Measures must be taken to ensure that their daily work is carried out safely. Especially in the area of prevention of violence against women. Taking into account the specific characteristics of domestic work, under the terms and with the guarantees provided for in the regulations. In order to ensure their health and safety.
The new regulation also establishes that from January 1, 2023, employers will be responsible for managing the contribution of domestic employees who provide their services for less than 60 hours per month.
This reform also modifies the termination of these contracts by eliminating the figure of withdrawal. Until now it was only present in the area of domestic work, limiting dismissal to situations of justified cause.
From now on, in order to favor that the cases of dismissal occur for these causes, this figure is restricted exclusively to three situations:
- Decrease in the income of the family unit or increase in its expenses due to a supervening circumstance.
- Substantial modification of family needs.
- Behavior of the employee that reasonably and proportionately justifies the loss of trust.
What will the compensation pay for household employees be like?
The dismissal of 12 days per year with a maximum of 6 monthly payments will be maintained. For those families that justify the termination of the contract for any of the three causes mentioned above.