Social Security Calculation

PeopleSoft Global Payroll for Spain calculates social security contributions by multiplying a base by a percent (in the case of regular employees) or by retrieving a fixed rate (in the case of trainees and apprentices).

In PeopleSoft Global Payroll for Spain, the system:

• Calculates the social security funding base.

• Normalizes the funding base by comparing the calculated base with government-defined maximum and minimum values.

• Retrieves the percentage used to calculate the contributions of regular employees (or rates in the case of trainees and apprentices).

• Calculates contributions by multiplying a base by a percent (or by assigning a fixed rate in the case of trainees and apprentices).

Note:

PeopleSoft Global Payroll for Spain also calculates contributions of the pending vacation balance for terminated employees. This is discussed later in this product documentation.