minimum wage of 900 euros and increases for pensioners or self-employed
MadridUpdated:
It ends in 2018 and the Executive of Pedro Sanchez, wanted to inaugurate 2019 with a series of "bonuses", by decree law, aimed primarily at pensioners, self-employed and employed (mainly those with lower purchasing power). Here we leave it summarized:
Increase in pensions
The last Council of Ministers of the year, held last Friday gave the green light a Royal Decree Law to increase the pensions by 1.6% and the minimum and non-contributory 3% as of this Tuesday. Specifically, Susana Alcelay reported on ABC, part of this increase will be covered with a credit supplement charged to public debt of almost 1,400 million to cover part of the 1.6% increase applied this year in the payroll of retirees more the payment they will receive before April 1 to compensate for the price deviation.
Minimum salary of 900 euros
Similarly, the Executive gave the go-ahead to a new revaluation system that will consist of taking the interannual CPI average of the last twelve months, between December 2017 and November 2018, which was 1.7%. In 2019 the minimum pension will be 677.4 euros per month and the maximum at 2,659.4 euros.
The Official State Gazette (BOE) published it on December 27, after its approval in the Council of Ministers on 21 December. It is about the rise of the Minimum Interprofessional Salary (SMI) up to 900 euros per month in 14 payments, and will come into force tomorrow. What it supposes an increase of 22.3%, equivalent to 164 euros per month. This increase is the highest since 1977, and increases the annual income to 12,600 euros. What has justified the Government in its desire to bring the SMI closer to the European average and boost both consumption and tax collection.
Rise of the autonomous contribution base
Another group affected by the "arguinaldos" of Sánchez are the self-employed: Within the measures approved at the last Council of Ministers of the year, held last week, the Executive gave the green light to an increase of the minimum base at 5.36 euros per month, 1.25% from the current 932.7 euros to the 944.3 euros per month. In addition, the contribution rate will increase by 0.2 points, from 29.8% to 30%. What will scale to 30.3% in 2020 and 30.6% in 2021 to conclude at 30.9% in the fourth year.
For practical purposes, ABC reported, the self-employed quota will rise 64 euros a year instead of the proposed 260 euros by the Government for natural persons. In the case of the companies, the increase will be 82 euros. What is within the trend of recent years, and even below the last 15 years in which the contribution base increased by 1.4%, although in cumulative terms reached 21.1%.
