Permanent disability benefits

Published on: 11/02/2016

Permanent Disability is when the worker, after receiving the prescribed treatment and being medically discharged, exhibits serious anatomical or functional reductions, subject to an objective determination and assumed permanent, which reduce or annul their capacity to work. This determination will not prevent the possibility of the incapacitated person to recover their work capacity, if this possibility is medically considered to be uncertain or long-term. 

Permanent Disability is deemed to exist when the worker meets the following conditions:

  • Has received medical treatment.
  • Exhibits serious anatomical or functional reductions.
  • The point above is subject to objective determination (with medical tests).
  • It is assumed to be permanent (recovery is not medically possible).
  • It reduces or annuls the capacity to work.

In the case of Occupational Accidents or Diseases

The mutual society will start the process with the National Institute of Social Security (INSS) to determine what benefit the worker should receive.

  • The mutual society must assume the cost of the lump sum payment benefits deriving from Work-Related Accident and Occupational Disease through direct payment to the Beneficiary, provided that it is responsible, if applicable, for compensations determined by a scale in the event of non-incapacitating permanent injuries or the lump sum amount in the event of partial permanent incapacity. Only fee-paying provisions derived from Work-related injury and Occupational Disease, subjects are found to tax payment in the terms established in the Article 17.2 of the Act 35/2006 of the Personal income tax (PERSONAL INCOME TAX)
  • The mutual society will assume the cost of the pension provisions deriving from Work-related Injuries and Occupational Diseases through the constitution in the Central Treasury for Social Security of the corresponding capital, provided that it is responsible for this.

In the case of Non-work-related Accident or Disease

The law establishes that mutual societies shall not be responsible for the payment of benefits that might derive from a declaration of Permanent Incapacity. These will be payable by the Social Security.

How is this benefit processed?