The international Social Security agreements allows the interested party to be registered in the Social Security System, thus retaining the right to the benefits of permanent disability, death and survival, those derived from common illness and non-occupational accident, retirement and social services.
Requirements for signing the special agreement
In order to sign the special agreement, the following requirements must be met:
- Application submitted to any office of the TGSS, within the term, or within 90 days, or 1 year following the cessation or the situation determining the special agreement.
- To have accumulated a period of 1,080 days of Social Security in the previous 12 years on the date of application to sign the agreement.
Acceptance of the agreement will be notified within 3 months from the date of your application. The lack of a decision will become a positive silence, and the corresponding application will be considered accordingly.
Documents required for the processing of the special agreement
The special agreement may be applied for by submitting form TA/0040, enclosing:
- The original identification document of the applicant or a certified copy thereof.
- The Certificate of the company or companies in which the applicant has worked in the last twelve months prior to leaving. (Tax bases for common contingencies must appear).
- The signed permit, in the case of submitting the application through a third party.
Tax base and monthly payment to be paid
In order to calculate the monthly payment, the applicant may choose between the following monthly tax bases:
- The maximum tax base, as long as he/she has had to pay contributions for it for at least 24 months in the last 5 years. In 2016 the maximum base established was 3,642.00.
- The tax base that results from dividing by 12 the sum of the bases for common contingencies during the 12 consecutive months prior to the month in which the de-registration took effect or the obligation to pay contributions terminated.
- The current minimum tax base.
- A tax base included between the previous tax bases.
The full contribution is calculated by applying the single contribution rate in force under the General System (28.30% in 2016) to the chosen tax base.
The result obtained is multiplied by the coefficient applicable to the protective action granted through the special agreement. The resulting sum will constitute the liquid amount to be paid.
Practical example of the calculation of the monthly installment to be paid
A worker has provided services continuously since August 2003, and has therefore been included under the scope of application of the General Social Security System during this time.
On March 15, 2016, he voluntarily retired from the company where he worked when he was posted to another country.
On September 1 of the same year, he applied to sign a Special Agreement, paying contributions for the maximum basis.
The worker’s tax bases have remained unchanged since January 2010 at an amount of 1,500 euros per month.
How will the monthly payment be determined?
- Following the established formula, we apply the single rate in force in 2016 to the basis of the contribution chosen by the worker.
In our case, the worker chooses to pay contributions for the maximum basis: €1,500.
If we apply the single rate in force, which in 2016 is 28.30%, we will obtain the full sum:
Full payment: 1.500 x 28.30% = 424.5
- The total contribution will be multiplied by the applicable coefficient, which would be 0.94, as this is an agreement with the purpose of covering all the benefits of common contingencies.
Monthly fee to be paid: 424.5 x 0.94 = €399.03
Payment of the established monthly installment
The worker will pay the monthly sum each month by direct debit through the account opened in the name of the applicant of the agreement.
If you have doubts about this topic, please do not hesitate to contact the GD Global Mobility team of professionals.