Funding Base Calculation for Regular Employees

This topic discusses how the system calculates the four funding bases that are required to calculate employees' social security contributions: common contingencies base, professional contingencies base, and bases for structural and nonstructural overtime.

Note:

This topic discusses how the system handles regular employees. The calculations are different for trainees, apprentices, and employees with multiple jobs.

See Funding Base Calculation for Employees with Multiple Jobs.

See Base Calculation for Trainees.

Calculating the Common Contingencies Base

The Common Contingencies Base is the sum of various subbases that comprise earnings for:

  • Nonsick days base plus extra period proration.

  • Days when the employee is absent with these types of absence: IT absence, AT absence, maternity or paternity absence, or absence for risk during pregnancy.

    For monthly employees who contribute 30 days total regardless of how many days are in a month, the system calculates absences days as 30 nonsick days.

  • Absence in which the employee contributes according to his earnings (cotiza por lo que gana).

  • Absence in which the employee contributes according to the minimum base (cotiza por la base minima).

In addition to summing up various subbases to calculate the final amount of the common contingencies base, the system sets the value of the maximum and minimum bases to use in the normalization process when an employee has multiple jobs in different companies.

Calculating the Professional Contingencies Base

The calculation of the professional contingencies base is almost identical to that of the common contingencies base. Here are the key differences between the calculation for the common contingencies base and the professional contingencies base:

  • The common contingencies calculation uses the maximum and minimum bases for the employee's work group (as defined on the Work Group page), whereas the professional contingencies calculation uses the upper and lower ceilings defined on the Social Security Scheme page.

  • The structural and nonstructural overtime amount is added to the nonsick base for the professional contingencies base.

  • Just as the common contingencies calculation uses a minimum hourly rate to calculate the funding base for part-time employees, the professional contingencies calculation uses its own minimum hourly rate.

Note:

You can control how the system calculates the professional contingencies base (CP BRD) using the CLI VR CP BRD CLC (CP BRD Calculation) variable.

When the variable has a value of 1 (the default value), the system calculates the CP BRD as:(Professional Contingencies for the previous month – Overtime for the previous month) / Contribution Days + Overtime average for the last 12 months.

If you assign a value to the variable other than 1, the system calculates CP BRD as: Daily Common Contingencies Base for the previous month + Overtime average for the last 12 months.

Calculating the Overtime Bases

Unlike the common and professional contingencies bases, the bases for structural and nonstructural overtime do not undergo normalization and do not require any special calculations. They are used only as a basis for determining the employer and employee contribution for overtime.

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