From 1 January 2024, students who undertake work placements whether paid or unpaid, are included in the system of the Social Security. This is laid down in the Royal Decree-Law 2/2023. This measure extends rights and is of particular benefit to young people, who are building up their Social Security contributions for the future.
But what exactly do these new regulations entail? We’ll explain it all in this article. Read on!
The regulatory context
Before the amendment to the 1 January 2024, students on work placements were not automatically included in the Social Security. In other words, they did not make contributions during their work placement and, as a result, did not benefit from the protection provided by the social security system, nor did they accrue any time towards their pension.
It is precisely to reverse this situation that the new regulations are coming into force, which aim to improve and expand the pupils’ rights. This means that those undertaking work placements will have hours recorded and will be taken into account when applying for future pensions. Furthermore, they will be covered by the Social Security in the event of accidents or other contingencies.
In this regard, it is important to note that coverage under the Social Security system extends to all students who undertake work placements or external academic placements, regardless of whether they are paid or not. Specifically, it benefits:
- Pupils university students: both to obtain an official qualification (undergraduate degree, master’s degree or PhD) and to study for the university’s own degree programmes.
- Vocational training students: provided that they are not undertaken as part of an intensive vocational training programme (i.e. not of a work-related nature).
- Pupils from arts education higher education, vocational arts courses and sports coaching of the education system.
Universities, companies and training centres are responsible for registering and deregistering students, as well as for fulfilling their obligations to Social Security.
Social Security contribution relief
How are social security contributions calculated during work placements? We’ll explain this below:
- Contribution Base: to determine the monthly contribution base, we multiply the minimum base for Group 8 of the General Social Security Scheme (which in 2023 is 38.89 per month) multiplied by the number of days of work experience completed. The maximum amount for this contribution base is equal to the minimum contribution base for Group 7 of the RGSS.
- Contribution Days: every day of unpaid work placements is regarded as 1.61 days of contributions, without exceeding the total number of days in the month.
- Bonus: The implementation of this new measure includes a reduction in Social Security contributions. Specifically, there is a reduction of 95%: contributions for common contingencies. Furthermore, in the case of vocational training students, the The remaining 5% is covered by the Ministry of Education.
At this point, it is important to note that the scholarship holders they do not pay social security contributions for unemployment, therefore, this period cannot be used to claim unemployment benefit.
What happens if you were a scholarship holder before 2024?
If you undertook a work placement before 2024, you are probably wondering what will happen to your social security contributions. Does the new decree apply retrospectively? The truth is that it does not provide for any direct retrospective effect. However, it is possible to enter into a special agreement if the work placement took place up to five years before it comes into force under Royal Decree-Law 2/2023 (that is, between 1 January 2019 and 1 January 2024).
This means that you could choose to make contributions for those past work placements. However, you should be aware that negotiations on this measure are taking place within the framework of social dialogue and are pending the adoption of the relevant regulations by means of a Ministerial Order.
Requirements for registering an intern
Finally, please note that, in order to register an intern with the Social Security system, they must have been assigned a Social Security number (NUSS). If the student has worked previously, they will already have a NUSS and you will simply need to check it.
If it does not have one, the company, institution, organisation or training centre required to fulfil its Social Security obligations must apply for this number.
Did you find this post about former trainees and social security contributions to the Social Security? You can keep up to date with the job market, including information on theIncrease in the National Minimum Wageand its impact on thepayroll.
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