Image description: A woman with short, wavy, dark hair is holding a tablet, and a man with short, dark hair has a laptop. They are sitting at a glass table with two other people whose faces are cropped out. There is a brick wall in the background and round metal lamps. On the left, there is a black box with yellow text that says "Spain" and white text that says "HCM Nómina España: Pension Plan 2023 Changes — Simplified Limit and Allowance."
Hello,
In today's blog post, I’ll present the latest government updates on Simplified Employment Pension Plans and the new Pensions Plan Allowance. We've broken down our content into easy-to-understand topics, so you can quickly find the information you need. Let's dive in!
- Prerequisites
- What is the Pension Plan Allowance?
- Incremental limits described in Simplified Employment Pension Plans
- Limits for Contribución de la Empresa al Plan de Pensiones (/PPB)
- Keeping coherence between AFI and SLD
- New concept 301 to report the employer's contribution value
- Generating the PP allowance without using the IT3213 infotype
Prerequisites
You have installed the following SAP Notes:
- 3285374 PP: New limits for Pension Plan calculation 2023
- 3287386 PP: Objects delivery for SAP Note 3285374
- 3294969 PP: Objects delivery for SAP Note 3292611
- 3297539 PP: Pension Plan allowance for customized wage types
- 3298511 PP: Simplified Pension Plan limit does not consider current contribution
- 3302306 SS_CALC: New /PPB wage type
- 3303353 SS_CALC: Pension Plan allowance incorrectly calculated between contribution limits (/PPB)
- 3305915 PP: Incorrect RPC allowance method amount for multiple periods
- 3292611 PP: Pension Plan Allowance RED 10/2022
- 3308739 PP: /PPB above expected for pension plan contributions
- 3320553 CALC: Short dump for employees with RPPC allowance method in a split with adjusted day
- 3300734 SLD: New concept 301 for SLD Bases report
- 3305867 SLD: Incorrect 301 concepts Correction of legal function
- 3311167 SLD: Incorrect value for concept 301 for employee with VND
- 3316647 SLD: Incorrect 301 concept when employee has payroll split
What are the Pension Plan Allowance and Simplified Employment Pension Plans?
In the latest update from Bulletin 10/2022, released on December 28, 2022, there's an important change in pension contributions. Companies that have been putting money towards their employees' pensions can now apply for an allowance. The Spanish government has set up a new rule called Simplified Employment Pension Plans (Ley 12/2022, Article 74), the Spanish government defined incremental limits to be applied based on the company contribution, check the next section for more information.
Incremental limits described in Simplified Employment Pension Plans
Beginning in January first, 2023, there is a new Pension Plan limit: The maximum exempt contribution is EUR 1.500,00 per year. But don't worry, you can increase the limit based on the company contribution, as seen in the table below. Here's how it works for employees earning EUR 60.000,00 or less per year:
| Employer contribution | Total contribution |
| <= EUR 500,00 | 2,5 times the Employer contribution |
| > EUR 500,00 and <= EUR 1.000,00 | 2 times the Employer contribution |
| > EUR 1.000,00 and <= EUR 1.500,00 | 1,5 times the Employer contribution |
| > EUR 1.500,00 | 1 time the Employer contribution |
When the annual total exceeds EUR 60.000,00, the coefficient is always 1. Thus, the employee can contribute up to EUR 1.500,00, and the remaining amount comes from the company, up to EUR 10.000,00.
Consider that an employee contributes EUR 400,00, and the company contributes EUR 100,00 per month. Up until the 5th month, the contribution is in the limit. However, in the 6th month, this limit is exceeded, consequently the contribution amount becomes limited.
Example:
- Employee’s contribution: EUR 400,00
- Company’s contribution: EUR 100,00
In the 6th month:
- Default limit: EUR 1.500,00
- Total contribution from the company: 6 * 100 = EUR 600,00
- Total contribution from the employee: 6 * 400 = EUR 2.400,00
- Coefficient for the 500 – 1000 range: 2
1.500 + 600 * 2 = EUR 2.700,00
In this scenario, the total contribution amount is EUR 3.000,00, while the limit is EUR 2.700,00. As consequence, the employee’s contribution has been reduced from EUR 400,00 to EUR 100,00.
Limits for Contribución de la Empresa al Plan de Pensiones (/PPB)
To generate a PP allowance, you need to activate the RPPC (Reduction of employer contributions for employment) in the Seguridad Social (ES) (IT0061) infotype for workers who qualify. This way, the payroll system calculates the Contribución de la Empresa al Plan de Pensiones (/PPB) based on the Contribución Empresa Plan de Pensiones (/PPC).
Note: The /PPB is the basis the system uses to calculate the RPPC amount.
- Contribution limit: The maximum amount eligible for a bonus is EUR 119,31 per month. This can be divided across multiple payrolls but should not exceed the monthly limit.
- Monthly contribution limit according to the employee's gross income: Only the amounts that are part of the employee's gross income qualify for the pension plan allowance.
Remember: The system figures out the allowance by multiplying the /PPB base by 23.6%. This gives you the Company allowance to the Bonificación Empresa al Fondo Contingentes Comunes (/331) wage type.
Examples:
In these examples, keep in mind the maximum limit of EUR 4,495.00 and the minimum of EUR 1,629.30. Also, the situations below assume that the wage type Base de Cotización de Contingencias Comunes (/342) includes the /PPC amount.
| Regular Case | ||
| Wage type: | Value: | Comment: |
| /342 (work base) | 2100 | This is between the limits. |
| /PPC (company pension plan) | 100 | Already added to the /342 value. |
| /PPB (pension plan allowance base) | 100 | Equal to /PPC, as there is a limit to use. |
| /331 (allowance amount) | 23,16 | Allowance calculated based on the /PPB. |
| Above maximum limit | ||
| Wage type | Value | Comment |
| /342 (work base) | 5100 | This is above the top limit. |
| /PPC (company pension plan) | 100 | Already added to the /342 value. |
| /PPB (pension plan allowance base) | 0 | Ideally equal to /PPC. However, as the gross amount is above the top limit, it is necessary to limit the amount. The /PPB will be generated with no amount. It indicates that the pension plan allowance was set and configured during this payroll process. |
| /331 (allowance amount) | 0 | The /331 wage type is not generated, as there is no /PPB base for calculation. |
| Near maximum amount | ||
| Wage type | Value | Comment |
| /342 (work base) | 4.545,50 | This is above the top limit. |
| /PPC (company pension plan) | 100 | Already added to the /342 value |
| /PPB (pension plan allowance base) | 60,00 | Ideally equal to /PPC. However, summed with the gross amount, it's above the top limit. This results in a /PPB of: Max/Gross amount = maximum useable amount for pension plan allowance base. 4495,50 - (4535,50 - 100) 4495,50 - 4435,50 = 60 (max for /PPB) Result: maximum amount for /PPB is EUR 60,00. Usually the /PPB is equal to/PPC. However, as the /PPC is bigger than 60,00, the /PPB must comply with this new limit: /PPB = 60,00 |
| /331 (allowance amount) | 60 * 23,6 = 14,16 | Allowance calculated based on the limited /PPB |
| Above minimum amount | ||
| Wage type | Value | Comment |
| /342 (work base) | 1.649,30 | This is above the top limit. |
| /PPC (company pension plan) | 100 | Already added to the /342 value |
| /PPB (pension plan allowance base) | 20,00 | Ideally equal to /PPC. However, summed with the gross amount, it's a little above the minimum limit. This results in a /PPB of: Gross amount /min = remaining useable amount for pension plan allowance base. 1.649,30 - 1.629,30 = 20 remaining amounts to be used for /PPB Usually the /PPB is equal to /PPC. However, as the gross amount is bigger than the minimum, the /PPB must comply with this new limit: /PPB = 20,00 |
| /331 (allowance amount) | 20 * 23,6 = 4,72 | Allowance calculated based on the limited /PPB |
Keeping coherence between AFI and SLD
To prevent mistakes in reporting this allowance, first submit the Affiliation File (AFI) with the company's contribution. After that, submit the SLD Bases Report, as explained in the Direct Settlement System Technical Specifications manual. You can find the manual at https://www.seg-social.es/descarga/es/187220.
New concept 301 to report the employer's contribution value.
The SLD Bases (RPC_PAYES_CRETA_BASES) program has been updated to include the new economic concept 301, called "Base de cotización sin aportación a plan de pensiones de empleo," according to the boletín RED. Here's an example to show how the value is calculated:
- Suppose there is a maximum limit of EUR 4,495.50 and a minimum limit of EUR 1,629.30. The /PPC wage type needs to be part of the gross base, this configuration is up to the user. Keep in mind that the wage type named Base de Cotización de Contigencias Comunes (/342) always includes the /PPC amount.
| Wage type | Value | Comment |
| /342 (work base) | 2100 | This is between the limits |
| /PPC (company pension plan) | 100 | Already added to the /342 value |
| /PPB (pension plan allowance base) | 100 | Equals to /PPC, as there is limit to use |
| /331 (allowance amount) | 23,16 | Allowance calculated based on the /PPB |
In this situation, the SLD will be reported like this:
| Concept | Amount | Comment |
| 500 | 2100 | Total common contribution base |
| 301 | 2000 | As the /PPB is 100, the 301 should always be calculated: concept 500 - /PPB |
Note: The system only generates the 301 concept for the ordinary liquidations file (L00).
Generating the PP allowance without using the IT3213 infotype
You can create the wage type Contribución Empresa Plan de Pensiones (/PPC) based on your company's approach and set up the RPPC allowance for an employee who qualifies for it. Remember to generate each /PPC separately in a payroll split for Social Security.
The payroll creates a Contribución de la Empresa al Plan de Pensiones (/PPB) wage type, which is used to determine the pension plan allowance within the allowed limits. As a result, the SLD base produces a Tramo with the concept 301. The system calculates the /PPB by taking into account that the value of the /PPC is included in the /342 wage type.
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All the best,
Manuela Kliemann
Gabriela Corazza
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