Social Security Spain: Annual Salary Register
In the last years, the principle of gender equality has been given an enhanced role in Spanish labour law. In October 2020, two important regulations were approved; the Royal Decree 901/2020 and the Royal Decree 902/2020, which regulate equality plans, audits and a public salary register.
Introduction to Salary Register Regulations
These new regulations on the salary register and compensation audit are specifically crafted to tackle gender pay gaps in the workplace. Understanding them is crucial for all businesses operating in Spain. From mandatory requirements to the serious consequences of non-compliance, this guide delves into the essentials of these measures, shaping modern employment practices and promoting fair compensation.
Here you will find everything you need to know about the new regulations. You can also explore our FAQ section for Businesses in Spain for more general information.
Here you will find everything you need to know about the new regulations.
What is the salary register?
The salary record will serve to collect information on gender pay in the different professional categories and allow the development of corrective measures to achieve workforce without gender inequalities.
Which companies have to prepare the salary register?
Crucially, all companies must prepare a salary register without exception, regardless of their size or turnover. Even if you employ only one male or one female employee, the register remains compulsory.
However, there is a specific exemption: if you, as the administrator shareholder of the company, are the sole employee and are registered under the RETA regime (Social Security for Self-Employed), then the salary register is not required. For more details on compliance, see our section on RETA Compliance Assistance.
What is a compensation audit?
A Compensation Audit involves compiling and rigorously analyzing data on employees’ remuneration. Its purpose is to uncover any existing pay gaps and to implement measures that ensure the company’s compensation structure fully adheres to the principle of equality between men and women in terms of salary. This goes hand-in-hand with effective payroll management.
Which companies have to prepare the compensation audit?
Companies with the obligation to prepare an Equality Plan (those with 50 or more employees), must additionally conduct a Compensation Audit.
What should the salary register include?
It must include a gender breakdown between the average and the median of the actual compensation, allowances and non-wage payment for each occupational group, professional category, level, position, or any other applicable classification.
Can i make the salary register and the compensation audit by job groups or categories?
No, it must be a single record for the entire company. It should refer to your entire workforce, including senior management and senior positions, even if they belong to different sections of the job classification.
How to present the salary register
If there are workers’ representatives
The Salary Register must be sent to the legal representative of employees. They have the right to know the full content of the registry. In addition, the representatives must be consulted, at least 10 days in advance, prior to the preparation of the registry (also if there are any modifications).
If there are no workers’ representatives
In this case, the information is to be provided on request and will be limited to the percentage differences that exist in the average salaries of men and women. When the Salary Register shows that there is a pay gap higher than 25%, the company will have to justify that this difference is not due to gender.
What Are the Consequences of Non-Compliance?
Investigations into non-compliance are typically initiated when a complaint is filed with the Labour Inspectorate. Failing to meet this obligation is considered a serious infringement under social order law articles 7.5 and 13. Penalties can include a fine ranging from €751 to €7,500. Moreover, non-compliant companies will face the voiding of any subsidies or employment supports received. It’s crucial to understand your legal and financial responsibilities for companies in Spain.
Do You Need Assistance with Your Salary Register?
Navigating these regulations can be complex. We are happy to prepare your annual salary register for you. For more information or to discuss how we can assist you, please do not hesitate to Contact Us. We’re here to help you ensure full compliance and promote a fair workplace. Find out more about how to pick an accountant who can help with these matters.
