New contributions for domestic workers

The Council of Ministers has approved Decree-Law 16/2022, of 6 September, which establishes new labour and contribution regulations for domestic workers, which will be applicable as of next October to bring their labour rights into line with those of the rest of the sectors.

 

The main new features are:

 

Dismissal by withdrawal allowed the employer, without needing to indicate a cause, to terminate the employment relationship with the domestic worker. In its place, the ordinary regulations will apply with some particularities related to the fact that the family has no economic requirements.

 

On one hand, both the worker and the employer must pay unemployment and wage guarantee fund (FOGASA) contributions as of 1 October.

 

On the other hand, domestic workers must pay unemployment contributions for a full year before being eligible for the contributory benefit and all existing welfare benefits, in the same way as a salaried worker under the General Scheme.

 

The SEPE (State Public Employment Service) will subsidise 80% of the employer's contributions to unemployment contributions and FOGASA of the new contributions to alleviating the impact on the economy of families who have hired domestic workers.

 

The new unemployment contribution will be 6.05% of the regulatory base. The employer will pay 5% and it will be subsidised with 80%. The remaining 1.05% will have to be paid by the worker.

 

In addition, the 20% reduction in the employer's contribution to the contribution for common contingencies and bonuses currently existing for employer families will be maintained. In addition, within six months, the bonus brackets above 20% will be increased, depending on the composition of the household and the levels of income and wealth, which is expected to increase the number of beneficiaries. The requirements for these subsidies are still pending regulation.

 

Coverage by the Wage Guarantee Fund (Fogasa) is also established for this group of domestic workers, which goes hand in hand with a new contribution of 0.20% of the worker's regulatory base, which will also be subsidised by 80%. In this way, the families of domestic workers who declare themselves insolvent according to the Second Chance Law will be able to claim their wages and compensation from this body (Fogasa).

 

Domestic workers will also be included in the law on the prevention of occupational risks.