Example of calculating common contingencies in payroll

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2. Then the concepts excluded from the contribution base are considered, that is, some salary concepts that must be subtracted from the gross salary to obtain the contribution base for common contingencies.

Contribution base = Gross salary - Exclusions

3. Finally, the contribution base is multiplied by the percentages established by the General Social Security Law . This allows us to calculate the contribution corresponding to the employee and the company.

Quote = Contribution Base x Percentage

To help you understand the whole procedure above, it is best to use a practical example. Let's imagine that you receive a base salary of €1,500, plus a transport allowance of €200 and an annual payment of €10,000. You also have a Social Security benefit of €150.

With this data, we can calculate the gross salary:

Gross salary = €1,500 + €200 + (€10,000/12) = €2,533.33

We move on to the calculation of the regulatory base:

Regulatory base = €2,533.33 - €150 = €2,383.33

Finally, applying the percentage corresponding to the worker and the company to the base:

Contribution (employee) = €2383.33 x 4.70% = €112.02

Quote (company) = €2383.33 x 23.60% = €562.47

This means that the employee's contribution for common contingencies will list of romania phone number be €674.49 (€112.02 + €562.47).

Impact of common contingencies on salary
These contributions, although they represent a means of protecting employees from many unforeseen events, have a considerable impact on an employee's payroll.

This is because the amount of money you will receive at the end of the month will be reduced. If we look at the example above, although your gross salary was €2,533.33, after deducting the corresponding contribution, you will only receive €2,421.31.

Let's also consider that we only take into account one of the types of Social Security contingencies. That is why it is important to check the breakdown of your payroll each month to know which contributions you are making and which are deducted from your payroll.

Differences between salaried workers and self-employed workers
To receive economic benefits for common contingencies, self-employed workers must register with the Special Regime for Self-Employed Workers (RETA).