Permanent incapacity benefits

Published on: 23/11/2015

Degrees of permanent disability

Partial Permanent Disability for the usual profession:

Limitation not lower than 33% in performance.

Total And Permanent Disability for the usual profession:

It disqualifies the worker for their “usual” profession but they can work at something else.

Absolute Permanent Disability for all work:

It disqualifies the worker for all professions or trades.

Severe Disability.

When the absolute permanent disabled worker needs another person's assistance for the most essential actions in life

The following chart indicates the existing different degrees of permanent disability.

Permanent disability

Non-disabling injuries caused by work-related accidents and professional diseases

Benefit consisting of a lump sum payment that the Social Security Institute recognises for workers that suffer injuries, mutilations and deformities caused by work-related accidents or professional diseases, that while they do not constitute permanent disability, they cause a decrease in the physical integrity of the worker, provided that they appear on the scale established to this end.


Amount of the financial benefits

Compensation determined by scale.

Amounts collected in Order TAS/1040/05 of 18 April.

The benefit will be effective starting from the corresponding resolution.

P.C. Partial.

This consists of a lump sum compensation payment equivalent to 24 monthly payments of the regulatory base that was used to calculate the temporary disability.

Economiceffects. The benefit will be effective starting from the corresponding resolution.

The benefit is subject to taxation in the terms established in the regulatory standards of Personal Income Tax (IRPF) and is subjected, where applicable, to the general withholding tax system.

Compatibilities. The benefit is compatible with the development of any work activity, both as an employee or as a self-employed worker, as well as with the maintenance of the work that was being carried out.

Workers with a partial permanent disability will have the right to be reinstated to their work position. The reinstatement conditions will depend on the degree of disability and of their subsequent recovery.

P.C. Total.

It consists of a lifelong pension of 55% of the regulatory base.

It will be increased by 20% for people over 55 years old when it is assumed unlikely that they will obtain employment in an activity different to the usual one.

The financial benefit is subject to taxation in the terms established in the regulatory standards of Personal Income Tax (IRPF), with the exception of qualified (75%) total permanent disability pensions that are exempt from tax.

The economic effects of the benefit are established at the time of rating, that is, at the date of resolution. Nonetheless, they can be backdated to the termination of the temporary incapacity benefit, when the amount of the permanent disability pension is higher than the grant being received, there being no retroaction, under any circumstances, if the worker was delayed in the rating.

The economic effects of the 20% increase, in the cases of qualifiedtotal permanent disability, is produced from the date of application, with a maximum retroactivity of 3 months, provided that they fulfil the requirements necessary to have the right to the aforementioned increase.

Compatibilities.

Pension with work:

It is compatible with any work carried out as an employee or as a self-employed worker in the same company or in a different one.

It is incompatible when in the same position in the company. 

20% increase with work and other benefits:

The 20% increase is incompatible: With work carried out as an employee or as a self-employeed worker.

P.C. Absolute.

It consists of a lifelong pension of 100% of the regulatory base

The economic effects of the benefit are established at the time of rating, that is, at the date of resolution. Nonetheless, they can be backdated to the termination of the temporary incapacity benefit (registration with proposal report), when the amount of the permanent disability pension is higher than the grant being received, there being no retroaction, under any circumstances, if the worker was delayed in the rating.

Compatibilities. The pension will not impede the exercise of those activities, whether they are profitable or not, that are compatible with the degree of disability and do not represent a change in their work capacity for the purpose of review

Severe disability.

This consists of a life-long pension of 100% of the regulatory base augmented by a supplement.

The economic effects of the benefit are established at the time of rating, that is, at the date of resolution. Nonetheless, they can be backdated to the termination of the temporary incapacity benefit (registration with proposal report), when the amount of the permanent disability pension is higher than the grant being received, there being no retroaction, under any circumstances, if the worker was delayed in the rating.

Pensions for absolute permanent disability and those for severe disability are exempt from tax in the terms established in the regulatory standards of the Personal Income Tax (IRPF).