Sanctions

In the mandatory registration of employees and their employers, there are three types of non-compliance:

1. Failure to fulfil contributory obligations (payment of contributions)

2. Non-compliance with other legal obligations, including those relating to registration in the contributory regime, contributory situation (completion and submission of the remuneration statement) and those relating to the communication of information (including on accumulations with labour income or with other social benefits). 

3. Non-return of social benefits wrongly received. 
    

The employer is responsible for complying with the contribution and other legal obligations, such as registration or the completion and submission of a remuneration statement. In case of non-compliance, the employer is subject to administrative offences that may involve the payment of fines or other penalties. Non-payment of social contributions, fines and default interest that have been applied generates Social Security Debt

The employee is responsible for complying with legal obligations, in particular those relating to the communication of information (including on accumulations with income from work or other social benefits) and the return of social benefits that have been unduly received. In case of non-compliance, the employee is subject to administrative offences that may involve the payment of fines or other penalties. The non-payment of fines and interest on arrears that have been applied, as well as the non-return of social benefits unduly received, generates Social Security Debt.

In the case of unduly received social benefits, and regardless of the debt, the National Institute of Social Security immediately suspends ongoing payments, if any. 

Return of the undue social benefits can be done by:

• Regular collection: through direct payment (in one-off payment of the full amount, or by instalments) or through offsetting against other benefits to which the debtor is entitled (offsetting done directly by the Social Security services).

• Direct payment within 60 days is of no consequence. During this 60-day period, the taxpayer can request payment in instalments, up to a maximum of 36 months/ instalments.

•  Enforced collection: non-payment in the regular terms leads to enforced collection by the Social Security, which implies the application of interest on arrears at the rate of 1% and the application of fines.

Offences conducted by employees are analysed on a case-by-case basis and depend on the following factors: 

• duration of the period of non-compliance

• damage caused to third parties 

• fault (negligence or wilful misconduct) 

• reoffending 

The amounts of the offences to be imposed may vary according to the following table: 

False statements always aggravate the fines imposed, as they are always considered serious or very serious administrative offences.

In mandatory registration for Individual Business Owners , there are three types of non-compliance:

1. Failure to fulfil contributory obligations (payment of contributions)

2. Non-compliance with other legal obligations, including those relating to registration in the contributory regime, contributory situation (completion and submission of the remuneration statement) and those relating to the communication of information (including on accumulations with labour income or with other social benefits). 

3. Non-return of social benefits wrongly received. 
    

In the event of any non-compliance, the ENIN is subject to administrative offences which may involve the payment of fines or other penalties. 

Social Security Debt exists when the ENIN has an outstanding amount for:

• social contributions not paid within the legal deadline

• fines and interest on late payments imposed

• non-return of social benefits unduly received

In the case of unduly received social benefits, and regardless of the debt, the National Institute of Social Security immediately suspends ongoing payments, if any. 
 

Return of the undue social benefits can be done by:

• Regular collection: through direct payment (in one-off payment of the full amount, or by instalments) or through offsetting against other benefits to which the debtor is entitled (offsetting done directly by the Social Security services).

• Direct payment within 60 days is of no consequence. During this 60-day period, the taxpayer can request payment in instalments, up to a maximum of 36 months/ instalments.

•  Enforced collection: non-payment in the regular terms leads to enforced collection by the Social Security, which implies the application of interest on arrears at the rate of 1% and the application of fines.

Offences conducted by employees are analysed on a case-by-case basis and depend on the following factors: 

• duration of the period of non-compliance

• damage caused to third parties 

• fault (negligence or wilful misconduct) 

• reoffending 

The amounts of the offences to be imposed may vary according to the following table: 

False statements always aggravate the fines imposed, as they are always considered serious or very serious administrative offences.

Individual Business Owners who have social security debts cannot:

Entering into or renewing contracts with the State, including procurement contracts, public works contracts or service contracts - therefore, in order to apply for any public tender, it is mandatory to submit a statement proving the social security contribution situation.

• Exploring the concession of public services

• Launch public offers for the sale of its capital and, in public subscription, participation securities, bonds or shares

• Benefit from support or subsidies from public authorities (with the exception of subsidies granted in the event of disasters).

Any public entity may only make payments or grant subsidies to Individual Business Owners  of an amount greater than USD 5,000, upon presentation of a Statement proving the contributory situation with Social Security. 

Whenever there is a debt to Social Security, even during the period in which the contract is in force, the public entity retains up to 25% of the amount of the subsidy/payment that it should make to ENIN, and delivers this amount to Social Security, reducing the amount of the debt. 

Exceptions to this rule are subsidies granted by the State specifically to create or maintain jobs, as well as support in the event of natural disasters.

In optional Registration there are three types of non-compliance:

1. Failure to fulfil legal obligations relating to the payment of contributions.

   Non-payment of contributions in the optional Registration does not generate a debt to Social Security: in case of non-payment, the Social Security services terminate the optional Registration with effect from the month following the last contribution paid.

   Nevertheless, workers who have opted to join the general social security regime and who have not paid contributions are subject to suspension of payment of benefits from the date on which they become due (except for death benefits). The worker regains the right to payment of the suspended benefits when he regularises his contribution situation by the end of the 3rd month before the protected situation occurs (maternity, old age, invalidity, etc.).

2. Non-return of social benefits wrongly received. 
   

3. Failure to comply with other legal obligations, concerning the provision of information (including on accumulations with income from work or with other social benefits, and information necessary for registration in the contributory regime).

Workers who are optionally enrolled in the contributory regime are responsible for complying with legal obligations, in particular those relating to the communication of information (including information on accumulation of income from work or other social benefits, and information required for registration in the contributory regime) and the repayment of social benefits that they have received unduly. 

In case of non-compliance, the worker enrolled in the optional contributory regime is subject to administrative offences that may involve the payment of fines or other penalties. The non-payment of fines and interest on arrears that have been applied, as well as the non-return of social benefits unduly received, generates a Social Security Debt.

In the case of unduly received social benefits, and regardless of the debt, the National Institute of Social Security immediately suspends ongoing payments, if any. 

Return of the undue social benefits can be done by:

• Regular collection: through direct payment (in one-off payment of the full amount, or by instalments) or through offsetting against other benefits to which the debtor is entitled (offsetting done directly by the Social Security services).

• Direct payment within 60 days is of no consequence. During this 60-day period, the taxpayer can request payment in instalments, up to a maximum of 36 months/ instalments.

•  Enforced collection: non-payment in the regular terms leads to enforced collection by the Social Security, which implies the application of interest on arrears at the rate of 1% and the application of fines.

Offences conducted by employees are analysed on a case-by-case basis and depend on the following factors: 

• duration of the period of non-compliance

• damage caused to third parties 

• fault (negligence or wilful misconduct) 

• reoffending 

The amounts of the offences to be imposed may vary according to the following table: 

False statements always aggravate the fines imposed, as they are always considered serious or very serious administrative offences.

In the non-contributory regime there are two types of non-compliance: 

1. Failure of beneficiaries to fulfil their duties.
2. Non-return of unduly received social benefits. 

1. Failure of beneficiaries to fulfil their duties.

In case of non-compliance with the deadline, the beneficiary is subject to: 

• Suspension or termination of entitlement to social pension
• Fines, which are analysed on a case-by-case basis and depends on the following factors: 
• duration of the period of non-compliance
• damage caused to third parties
• fault (negligence or wilful misconduct)
• reoffending 

The amounts of the fines to be imposed may vary according to the following table: 

2. Non-return of unduly received social benefits.

In the event of non-compliance, the beneficiary shall be liable to repayment of amounts unduly received.