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

Failure to fulfil contributory obligations (payment of contributions)
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).
Non-return of social benefits wrongly received.

Undue social benefit:

Benefit paid without the beneficiary being eligible (not entitled)

Benefit paid after suspension or termination of entitlement

Instalment paid in excess of the amount due

Benefit paid to a third party with no legal entitlement to receive it

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.

Citizens/Workers