Both measures would mean an increase in the bill of the companies, which face 23.6% of the contribution while employees assume the remaining 4.7%. Spanish companies pay 8.2% of GDP in social contributions, more than their European competitors who spend 8%.Thus, this measure will break into the results March 2019 Calendar Marathi of the Ibex 35 staff, with salaries above the average. Interestingly, the most affected sectors are regulated, precisely those in which the Bank of Spain
March 2019 Calendar Marathi
The rise of the maximum bases will be added to the increase of 23% that the minimum bases will suffer due to the impact of the Minimum Interprofessional Salaries (SMI), which will rise in the same percentage, to 950 euros in 2019.Therefore, although in accumulated terms the impact of high contributions will be greater on large companies, the lowest paid sectors will also be affected. The branch with the worst salaries is Hospitality, with 14,125 euros, followed by other services -15,782 euros- and administrative and auxiliary services activities -16,139 euros-.
In some of them, as in the extractive industries, salary increases have been considerably higher than the average despite being in the high range of salaries: while the average salary grew by 5.8% between 2008 and 2016 , in this sector it did 21.6%.
Precisely, the Government has set in its sights the salaries and margins of banks and oil companies, two of the sectors with higher average salaries, for which it wants to approve an effective rate in the Corporation Tax of 18% against 15% that it plans for the rest of companies with a turnover superior to the twenty million euros. The casuistry is given that this measure will forcefully limit the fiscal assets that these companies have, being, together with the electricity companies, the sectors that have more tax credits to compensate in their balance sheets.
The increase in fiscal pressure designed by the socialist government has been severely contested in public by the big employers and some large companies individually. The chemical employers Feique threatened a few days ago with dismissals if they dismantle the maximum social contributions, since “they will influence the labor costs and there will be correction in the templates”.
In fact, the supervisors, both the Bank of Spain and the The European Central Bank (ECB) insists that banks need to take additional measures to improve profitability, including the containment of operating costs, which in the case of Spain will now be higher due to this increase in contributions.
Spanish banks, for example, will have to assume the rise in social contributions at a time of low profitability that has already forced them to make drastic adjustments to the workforce and other cost cuts to improve their efficiency. This challenge, far from to be overcome, is still the main current challenge of the March 2019 Calendar Marathi Spanish and European banking sector. The profitability of the financial institutions of the country over the capital (ROE, for its acronym in English) was placed at the end of last June, according to the latest data of the European Banking Authority (EBA, for its acronym in English), in 8.9%, above the 7.2% average in the Eurozone but still below the cost of capital, which now stands at around 10%.