Carlos de la Torre on the new solidarity surcharge

The newspaper El Mundo includes in its article the opinion of Carlos de la Torre, partner of the firm’s Labour Department, on the new solidarity surcharge. This new additional contribution will be applied to salary brackets that exceed the maximum contribution base and that will increase as the salary increases, and will act as an incentive for some companies to relocate their workers to other countries.

Carlos considers this measure to be excessively aggressive and points out that “the solidarity quota may have an impact on the relocation of managers to avoid this new surcharge that has no impact on benefits. Companies will have to calculate this new additional contribution and, depending on the number of executives and managers who exceed the maximum contribution base and the impact on costs, they will be able to make decisions. Relocation implies a change of residence of the worker and of his or her life project and, although companies and workers seek the applicable law of the destination country to save costs, relocations will not be massive because it will also be in the interest of managers to maintain long insurance careers in Spain”.

Read the full article.