The employers' association opens to raise the quotas of the self-employed up to 400 euros
It sends its first proposal to the Ministry of Social Security in which it proposes twelve sections ranging from 212 euros to 329 euros already in 2023, gradually rising until 2025 for those who earn the most
The negotiation on the new contribution system for the self-employed based on their real income – which the Government has promised Brussels to start up next year – was not as paralyzed as it was believed due to the crisis derived from the war in Ukraine, but, with certain doses of secrecy, has continued in recent weeks. But unofficially and not with all organizations.
The last public meeting of the Ministry of Social Security with the most representative associations of the group and the unions was more than a month and a half ago, on February 28, but during this time the department led by José Luis Escrivá has maintained various bilateral contacts with UPTA and UATAE to try to agree on a new proposal, as confirmed by this newspaper.
However, ATA, the majority association that is integrated into the CEOE, has been left out of this round of bilateral talks by rejecting a new rise in quotas for the self-employed in these times of crisis and defending delaying the application of the new system until 2025, as the employers' association clarified this Wednesday in a joint statement sent by the three organizations (CEOE, Cepyme and ATA). The businessmen stressed that they have not participated in any informal contact that could have been held since last February 28 and that the last proposal they know of was the one that was presented to them at the meeting that day.
However, and despite the anger that an alleged negotiation behind his back – which Social Security denies – has generated in ATA, the organization led by Lorenzo Amor is now making a move and getting fully involved in the negotiation by sending its own proposal to the ministry, something that had not been done so far, which involves an increase in quotas for those who earn more than 1,700 euros per month, although it is a significantly lower increase than the last one that the Government had proposed and intends to do it progressively in three years.
The new minimum contributions proposed by employers will range in 2025 between 205 euros per month and 400.4 euros based on twelve sections that will depend on the net income of the self-employed person, that is, their income minus expenses plus the fees to be paid. Social Security less the percentage of expenses that is agreed based on the type of self-employed, as well as their minimum bases. The quotas for those who earn the least are very similar to those proposed by Escrivá on February 28, but ATA considerably cuts the contributions of those who earn the most, since it places the minimum at 400 euros in 2025, less than half of the 1,123 euros raised by the minister. The flat rate of 70 euros is maintained for those who start an activity, as Escrivá proposed, although the fine print remains to be specified.
Specifically, the minimum contribution is set at 205 euros for the next three years for those with net income equal to or less than 700 euros per month, well below the current rate, which stands at 294 euros. Similarly, the following four tranches, which include those entrepreneurs who earn more than 700 euros and up to 1,500 euros, will pay the same fee in 2023, 2024 and 2025 and will be less than or equal to now.
Lower fee for companies
Up to income of 1,300 euros, the Government's proposal of February 28 is practically maintained. The proposal is also respected that self-employed companies, religious and collaborating family members, without income, with losses or income below the Minimum Interprofessional Salary (SMI), be placed in the third tranche and pay a fee of 264.55 euros, which which represents a reduction on the current fee.
From 1,500 euros of net returns, the minimum contribution will be higher than the current one and will gradually rise by 0.7% per year for the 1,500-euro section and, from this band, they will increase from 2% each year up to 12% for the highest section, which will pay a fee of 400.4 euros in 2025, the year in which this system will be reviewed.
However, the CEOE warns that this proposal is conditional on the self-employed being able to modify their contribution base up to six times a year, the base for those over 47 years of age is unstopped and it is understood that said system is of minimum bases, which This means that the self-employed person will be able to freely choose to contribute for a higher base than the one that corresponds to them, with the only limitation being the maximum existing contribution base.
Eduardo Abad, president of UPTA, congratulated the CEOE because "finally" it has put a proposal on the table. “I am delighted that they are on board and finally understand that the system has to change,” he said.