What Is The Regulatory Base Of A Payroll And How Is It Calculated?

The regulatory base should not be confused with the contribution base , however, both concepts are closely related to each other and, in reality, they are quite similar.

This is because both bases are used to determine benefits, for example, the regulatory base is used to determine disability benefits or pensions .

But what is the regulatory base ? It is a scale that is determined based on the contribution base and never the other way around.

Taking into account that the regulatory base of a payroll is the gross remuneration that each employee receives on their payroll each month, it is always good to aspire to improve it.

And the fact is that the greater the regulatory base of a payroll we will have greater economic benefits in the case of going to unemployment, retiring or suffering a temporary disability.

What Does The Contribution Base Of A Payroll Include And What Does Not?

This compensation is gross and includes prorated overtime payments and paid vacations and overtime.

The following concepts are not present:

  • Transport.
  • Job training.
  • Allowances are also not included in the contribution base .

Every year, Social Security establishes maximum and minimum limits in tables that cover all professional categories.

This is applicable to all types of workers, from employed workers, the self-employed to those of the countryside and the sea and, finally, those of the home. They all have different contribution bases.

These contributions are reflected in the payroll and are known as the regulatory base of a payroll or contribution base.

This concept is a monthly contribution made by each worker and the amount varies according to their category . A sailor does not contribute the same to Social Security as a bank employee or a hairdresser, to give a few examples.

In short, the regulatory base of a payroll or contribution base differs from the normal regulatory base since the latter is calculated based on the former.

What Is The Regulatory Basis In A Payroll?

All employees, regardless of their sector, must perform these types of benefits every month while they are working.

With these amounts, Social Security finances benefits such as unemployment , pensions or temporary leave and disability.

In the case of employed workers, the companies they work for are responsible for entering these contributions to Social Security .

However, the amounts are different in each case since not all workers have the same qualifications, nor do they work the same hours, nor do they have the same training, responsibility or position.

In 2019, the percentage contributed by workers was 4.7% while 23.6% was carried out by the company.

In the case of overtime, the employee must pay 2% and 12 percent to his company, in the case of being an employed person.

As can be seen, the higher the bases, the better the type of benefit or retirement you receive .

If, due to your situation or category, you cannot improve the regulatory base of your payroll, what you can do is improve your savings to have a good economic cushion in the future and, thus, not have trouble.