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4.1ÌýÌýÌýÌý Mandatory employee benefits in Spain

The Personal Income Tax Act (Law 25/2006) defines benefits-in-kind as goods, rights or services provided to employees which are not part of the base salary.

Mandatory employee benefits are required by collective bargaining agreement (CBA). Many CBAs require supplementary employee benefits in Spain. However, the amount paid as benefits-in-kind cannot exceed 30% of an employee's salary.

Benefits-in-kind must meet the following to be considered as such:

1. Ìý

   •ÌýÌýÌýÌý they must be used just for private purpose, not only for professional activity

2. Ìý

   •ÌýÌýÌýÌý they must be as a result of a current employment relationship

3. Ìý

   •ÌýÌýÌýÌý they cannot exceed 30% of employee's salary

4. Ìý

   •ÌýÌýÌýÌý they must be assessed as per Personal Income Tax Act rules

The most significant are:

1. Ìý

   •ÌýÌýÌýÌý health insurance

2. Ìý

   •ÌýÌýÌýÌý life and personal accident insurance, and

3. Ìý

   •ÌýÌýÌýÌý retirement/early retirement scheme.

Health insurance

Private medical insurance is the employee benefit in Spain that complements the public medical service, and together with the