Spain has a complete social insurance system. When a company hires an employee, in addition to paying wages, it must also pay social insurance contributions for the employee, equivalent to approximately 30% of the employee's net salary. Social insurance premiums vary by industry. They include the following three categories:
1. General Social Insurance: Full-time employees, rate is 28.3% of the wage amount, with the individual contributing 4.7%
(Mainly referring to healthcare, pensions, etc.) Part-time employees, rate is 11.32% of the wage amount, with the individual contributing 1.88%
2. Work-related Injury Insurance: Full-time/Part-time, rate is 0.99% of the wage amount, with the individual contributing 0.63%
3. Unemployment, Training, and other insurance: Full-time employees, rate is 8.9% of the wage amount, with the individual contributing 1.7%
Part-time employees, rate is 0.4% of the wage amount, with the individual contributing 0.0%
Beginning in the 20th century, Spain started to build its social security system with a focus on social insurance. By the 1980s, Spain emphasized and strengthened the construction of its social welfare system, further improving its social security framework. The promulgation of the "General Social Security Law" in 1994 marked the further refinement of the Spanish social security system, achieving a universal social security model that places equal importance on social insurance, social welfare, and social assistance.