What are joint workplace pension schemes?

Workplace pensions are schemes offered by companies to their employees, with the advantage that both the company and the employee can make contributions to the scheme and thereby boost savings in order to supplement state retirement pensions.

A joint workplace pension scheme is a scheme formed by several companies, which means your SME can save on costs, streamline procedures and group assets together. The schemes already exist, so they can be integrated quickly and there is very little admin involved.


What are the benefits of arranging a workplace pension scheme for your SME?

Joint workplace pension schemes are easier to arrange than traditional company pension schemes, because less admin is required to set them up. Discover more benefits for your SME.


Corporation Tax Deduction

Any contributions made, whether regular or one-off, reduce the taxable base for Corporation tax.

In addition, the total tax liability will be reduced by 10% for Corporation Tax in the case of contributions for employees with gross annual salaries of less than €27,000. For higher salaries, the deduction will be proportional to the contribution amount.


The company can save on Social Security contributions

Companies can also get a reduction in their Social Security contributions for common contingencies, due to the increase brought about by contributions made by the company to the scheme.


Win-win strategy for the company and employees

A company pension scheme is the benefit that is most valued by employees, after health insurance.

Therefore, offering a workplace pension scheme will help you attract the best talent and retain talent over time.


How can I arrange a joint workplace pension scheme?

You can arrange a joint workplace pension scheme for your SME at any Banco Santander branch.

When it comes to arranging the scheme at your branch, you do not need to bring any documents. Our specialist agents can assist you throughout the process:

  • Choosing the scheme that is most suitable for your requirements.
  • Defining the contribution system.


Or if you prefer, search for your nearest branch.

What joint workplace pension schemes can I arrange as an SME?

There are various joint workplace schemes, with different investment policies that meet the different requirements of your SME:

  • Santander Empresas Renta Fija Mixta: invests 85% in fixed income and 15% in equity.
  • Santander Empresas Renta Fija Mixta 2: invests 75% in fixed income and 25% in equity.
  • Santander Empresas Renta Variable Mixta: invests 40% in fixed income and 60% in equity.
  • Santander Empresas Renta Variable Mixta 2: invests 60% in fixed income and 40% in equity.

Frequently asked questions about joint workplace pension schemes

  • What are the benefits of a workplace pension scheme for the employee?

    • Reduction of the personal income tax base
      Contributions made by the company for the employee do not increase the employee's personal income tax base. However, contributions made by the employee to the scheme reduce their personal income tax base.
      In addition, the contribution limit of €1,500 per year for a salaried worker goes up to €8,500. These additional contributions will be made jointly by the company and the employee.
    • Regular retirement saving
      Company pension schemes allow employees to make long-term savings. The contributions made by the company are considered the employee's "deferred salary", which will only be taxed in personal income tax on retirement or on redemption. So, as well as benefiting from the contributions, they will also benefit from the increase in Social Security contributions.
    • Employees can benefit from flexible terms and conditions
      Workplace pension schemes offer the option of transferring from an individual scheme, which can be advantageous if the workplace pension scheme has better terms and conditions.
  • Who can access the workplace pension scheme?

  • All employees must be granted access to the scheme, based on the principle of non-discrimination, and signing up is optional. In general, since this is an additional social benefit, all employees tend to sign up so they do not miss out on this benefit. An employment relationship must exist, so directors with a business contract or partners without an employment relationship will not have access to the pension scheme.
  • Do contributions have to be the same for all employees?

  • Contributions do not have to be the same for all employees. Regulations allow for different contribution levels, as long as they follow an objective criterion (fixed amount, % of salary, professional category, seniority, etc.). Employees with a workplace pension scheme can make voluntary contributions (regular or one-off) in accordance with the legal thresholds.
  • Can partners of the company contribute to workplace pension schemes?

  • If partners do not maintain an employment relationship with the company, but only a business relationship, the company cannot make contributions to workplace pension schemes for partners.
  • What is the contribution limit for workplace pension schemes?

  • The company can contribute up to €8,500 to the workplace scheme. If the company does not contribute €8,500, the employee can contribute to the scheme based on a series of pre-established factors. If no individual contributions are made by the employee, the company can contribute up to €10,000.
  • Do any documents need to be provided as evidence of the employees' representative signature?

  • This is not required. Representatives of the SME are selected at the discretion of the SME. The employees' representative can either be directly appointed or elected.
  • When can a workplace scheme be redeemed?

  • Whenever set out in the specifications. A workplace scheme covers the contingencies of retirement, disability, grade-II long-term care needs or grade III long-term care needs and death. Additionally, some of the exceptional cases for paying out a pension pursuant to Spanish law may be considered.
  • What happens to the workplace pension scheme if an employee changes job?

  • In the event of termination of the employment relationship with the sponsor for reasons other than retirement, disability, long-term care needs or death, the employee must move their consolidated rights over to another Pension Scheme.
    Employees can transfer to an individual scheme or a workplace scheme (if they move to a company offering a workplace scheme)

Shall we discuss it?

If you would like more information, visit any of our branch offices.


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