All companies that have an intern in the company must inform their labor advisor, since as of January 1, 2024, all companies must register interns with Social Security. This is regardless of whether they carry out paid or unpaid internships.
All companies that have an intern in the company must inform their labor advisor, since as of January 1, 2024 all companies must register interns with Social Security. This is regardless of whether they carry out paid internships or not.
As we already informed you in the newsletter sent on October 25, 2023, with effect from January 1, 2024, students performing training and academic internships included in training programs will be included in the Social Security system.
The Royal Decree-Law 2/2023, of March 16, on Pension Reform included this measure of the inclusion in the Social Security system of trainees, which was to be effective as from October 2023.
Subsequently, however, Royal Decree Law 5/2023, of June 28, included a delay in the obligation to register all interns with Social Security as of January 2024.
Thus, all trainees will pay contributions as from that date, regardless of whether they are paid or unpaid. Until now, only students with paid internships paid Social Security contributions for common contingencies and professional contingencies. Thus, scholarship holders with paid internships added years of work experience to be taken into account for retirement.
Students benefited: The new regulations cover university students, both those seeking official bachelor’s and master’s degrees and doctorates, as well as those pursuing the university’s own degrees.
This covers lifelong learning masters, specialization diplomas or expert diplomas. It also includes vocational training students, except in the intensive vocational training regime.
Protective Action: As regards Social Security protective action, it is applied according to the corresponding regime, excluding unemployment protection and coverage by the Wage Guarantee Fund. In the case of unpaid internships, protection for temporary disability due to common contingencies is also excluded.
Social Security obligations:
- For paid internships, the obligations fall on the entity that finances the training program, assuming the status of employer.
- In the case of unpaid internships, the obligations correspond to the company or entity where they are carried out, unless otherwise agreed in the cooperation agreement. The responsible entity must communicate the actual days of the internship.
Social Security contribution: In both cases, the contribution excludes the final contribution of the Intergenerational Equity Mechanism (MEI). A 95% reduction is applied to the contributions for common contingencies without other benefits in the contribution. The entity that assumes the status of company will be responsible for the payment of all contributions.
Retroactivity: Those who were in the situation described before the entry into force of the regulation may subscribe a special agreement, allowing the computation of the contribution for periods of training or internships carried out before that date, up to 5 years maximum.
For further information, please contact labor consulting.
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