How to register a worker with Social Security in Spain step by step
One of the basic procedures in a company in Spain is to register a worker with the Social Security. It is essential to carry out this process correctly, based on the Administration’s specifications, and we explain the process step by step below.
What is involved in registering a worker with Social Security?
Registering a worker with Social Security in Spain means officially enrolling him or her in the Spanish social security system, a legal requirement for any employee. This registration is essential because it ensures that both the employee and the employer comply with their legal and fiscal obligations, and it ensures that the worker has access to the benefits and protections offered by the system, such as health coverage, pensions and unemployment insurance.
The consequences of registering a worker with social security are significant for both the employee and the employer. For the worker, registration implies legal and social protection, securing entitlement to health care, disability benefits, retirement pensions, and in some cases, unemployment benefits. In addition, being registered means that the worker is contributing to his or her employment record and accumulating entitlements for future benefits.
For the employer, registering a worker means complying with labour legislation and tax obligations. This includes paying the relevant social contributions, which are essential to finance the benefits of the social security system. Failure to comply with these obligations can result in legal and financial penalties. It also ensures a transparent and regulated employment relationship, which is crucial for the integrity and reputation of the company.
How to register a worker with the Social Security system
Registering an employee with the Social Security is a compulsory process for any company, the basic process is as follows:
- Obtain the worker’s Social Security Affiliation Number: Before registering an employee, it is necessary for the employee to have a Social Security Affiliation Number (NAF). If the worker has been employed before, he/she probably already has one. If not, an application must be made.
- Employer Registration with Social Security: If the employer is not already registered with Social Security, he/she must do so. This registration involves obtaining a Contribution Account Code (CCC), which is unique for each company and serves to identify its obligations and payments.
- Communication of the Employment Contract: Before the employee starts working, the employer must communicate the employment contract to the corresponding employment office. This step is mandatory for certain types of contracts.
- Notification of the employee’s registration with the Social Security: The employer must notify the employee’s registration with the Social Security. This is done through the Direct Settlement System or RED System, a platform that allows the telematic management of affiliations, registrations, cancellations and variations of workers’ data. It is important to make this notification before the worker starts working.
- Information required for registration: To register the worker, the worker’s NAF, personal details, professional category, type of contract, start date of the contract, working day and, in some cases, the applicable collective bargaining agreement are required.
- Confirmation of Registration and Obtaining Documentation: Once the application has been processed, Social Security issues a document confirming the worker’s registration. This document includes the employee’s Social Security number and is proof that the worker is properly registered and protected under the system.
- Record Keeping and Ongoing Compliance: Finally, it is the company’s responsibility to keep up-to-date records of its employees and to ensure that it complies with ongoing obligations to report and pay social security contributions.
Penalties in the event of non-compliance or errors in processing the discharge
Failure to register a worker with the social security system, or doing so incorrectly, can result in serious penalties for the employer. Failure to register is a breach of labour and social security regulations, which is considered an illegal action and a fraud on the system.
Penalties for failing to register a worker, or for doing so incorrectly, can vary and generally include significant financial penalties, the total amount of which can depend on factors such as the length of time the worker has not been registered, the number of workers affected and repeat offences. These fines are set to deter employers from failing to comply with their legal obligations.
In addition to fines, employers may face other legal consequences, such as the obligation to pay back contributions with interest and surcharges. In serious cases or repeat offenders, they may face more severe sanctions, such as prohibition from contracting with the public administration, exclusion from benefits and aid, and in extreme situations, even criminal liability.
At Asesoría Orihuela Costa we are specialists in dealing with Social Security registrations and cancellations, contact our team and leave this management in the best hands.
