Talking about FOGASA (Salary Guarantee Fund) is synonymous with labor problems, but although this body acts in cases of debts from companies to their workers, the truth is that thanks to this institution the citizen is guaranteed the collection of part of the amounts not paid by businessmen and, therefore, it is conceived as a shield that reduces the impact of defaults, especially in situations of bankruptcy or insolvency.
According to the , FOGASA is the dependent body that “guarantees workers the receipt of wages, as well as compensation for dismissal or termination of the employment relationship, pending payment due to the judicial declaration of insolvency or insolvency of the employer “.
In fact, it is the companies themselves that are in charge, with their Social Security contributions, of feeding this fund with which payment to workers is guaranteed. Specifically, the business contribution is 0.2% of the contribution base each month. It is not, in any case, the only source of financing for the entity, which is also fed by other means (such as, for example, the General State Budgets).
However, FOGASA’s action is limited. The body does not pay all the debts accumulated by the company both in terms of wages and compensation (if the employment relationship has ended), since it has a limit for each worker.
What wages and compensation does FOGASA pay?
Regarding wages, FOGASA pays a maximum of the amount resulting from multiplying by two the daily Interprofessional Minimum Wage (SMI), including the proportional part of the extraordinary payments, by the number of days of salary owed to the worker. with a maximum of 120 days per worker.
If the worker’s salary is less, only the part corresponding to his salary will be paid. In the event that the salary is greater than that limit, the worker may only collect that maximum amount contemplated by FOGASA. The same happens with the number of days owed: if the amount is greater than those 120 days, the worker will be left without receiving the remaining days.
Regarding compensation for dismissal, it will depend on the type of job termination. The maximum amount per day is, as in the case of salaries, twice the daily SMI:
-In terminations at the will of the worker with just cause and in cases of unfair dismissal, the worker will see how FOGASA pays compensation of 30 days per year worked, with a limit of 12 monthly payments.
-In collective terminations or due to geographical mobility, FOGASA will pay 20 days per year worked with a maximum of 12 monthly payments.
-In terminations due to substantial modification of working conditions, FOGASA pays 20 days per year worked with a maximum of nine monthly payments.
-In contract terminations due to the termination of the contract in cases signed after 2015, FOGASA pays 12 days per year worked with a maximum of 12 monthly payments.
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