The Government proposes new quotas for the self-employed of between 184 and 1,267 euros per month according to their income


The Ministry of Social Security has presented this Thursday a new proposal for the future contribution system for the self-employed according to their income, which will be applied from 2023. After the may approach, José Luis Escrivá’s team has explained this afternoon a new proposal that divides the self-employed into 13 sections according to their income, from those who earn less than 600 euros per month to those whose income exceeds 4,050 euros, with quotas that are adapted to each group. The system would mean a minimum fee of 184 euros per month for the self-employed with less income and the maximum would reach almost 1,267 euros per month. In addition, it is proposed to maintain a reduced flat rate of 70 euros during the first two years in which the system starts up, sources from the negotiation explain to elDiario.es.


The minimum fee for the self-employed will increase by eight euros per month in 2022

The minimum fee for the self-employed will increase by eight euros per month in 2022

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The Government’s idea is that the new system – a recommendation of the Toledo Pact and pending for years – be rolled out over the next nine years, progressively. In 2023, for example, the self-employed who earn less than 600 euros per month would pay a monthly fee of 281.52 euros. Now the minimum fee reaches 294 euros per month, so these workers would already notice a reduction. Those who earn the most, with net returns above 4,050 euros per month, would see their quota increase to the new maximum of 351.90 euros next year.

At the end of the period, in 2031, the system would have been fully implemented according to income, with minimum installments of 183.6 euros per month and the maximum would reach 1,266.6 euros in the lower and upper tranches, respectively.

The Government estimates that two thirds will pay the same or less

According to Social Security calculations, two-thirds of the self-employed would pay less or the same amount to Social Security, while a third of self-employed workers (among which are going to include corporate owners) will pay plus. The objective is to achieve a fairer contribution system, adapted to the workers’ earnings, as is the case of employees, who contribute a percentage of their wages.

The self-employed, on the other hand, have maintained a contribution system by which they chose what to contribute to Social Security and the result was that of a large majority (86%) who contributed for the minimum available, regardless of their income. Whether they earned less than the SMI or if they had income of thousands per month. A direct consequence of this system is the low benefits that the self-employed now have. When contributing for the minimum, then the pensions and benefits they receive are calculated based on this contribution and are also very low.

The Government has proposed that the self-employed can vary up to six months in the tranche year, depending on their earnings. The benefits that could be generated (self-employment unemployment, disability) would be adapted to what was quoted at any given time.

The Ministry of Social Security has made numbers and has transferred that for people who have lower incomes, below 600 euros per month (not a very large group), this system would mean paying “about 1,300 euros less per year”. Workers in the earnings bracket between 600 and 900 euros per month, a fairly large group, the new contribution model would save them “about 600 euros per year,” sources of the negotiation explain to this medium.

The last proposal of the Government has been communicated this afternoon in a meeting to the social agents and the most representative self-employed organisations, UATAE, ATA and UPTA. The idea is to accelerate this negotiation from now on so that the new contribution system is approved before the second quarter of the year, as the Government has committed to Brussels within the European Recovery Plan. The next meeting is set for next Monday.

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