Sat. Mar 28th, 2020

Will the self-employed workers increase or decrease in 2019? Discrepancies between Podemos and the Government | Economy

Will the self-employed workers increase or decrease in 2019? Discrepancies between Podemos and the Government | Economy

Podemos and the Government can not agree with what will happen with the minimum bases of the self-employed in 2019. Will they rise or not? The first say no; the second ones qualify. Representatives of the party led by Pablo Iglesias and the Ministry of Finance have met on Wednesday to analyze how it develops the budgetary pact that they reached a few weeks ago, in which a rise of the minimum inter-professional salary (SMI) of 22.3% is contemplated. On the way out, the secretary of Organización de Podemos, Pablo Echenique, announced that they had agreed "by express provision that the SMI rise translates into a rise in the minimum base and, therefore, the minimum fee paid by the self-employed" .

However, government sources, also at the end of the meeting, have not been as conclusive. They have recognized that The Executive will separate the rise of the SMI to that of the minimum contribution base of the self-employed. That is, it will not apply the 22.3% increase approved for the lowest salaries. The same sources note that this does not guarantee that prices will not go up and open the door to update them.

From the Ministry of Labor, it is insisted that they maintain the three negotiation scenarios with different increases that they presented to the self-employed organizations, which involved the improvement of benefits. In fact, Social Security is receiving the allegations of these associations these days. Official sources from the department headed by Magdalena Valerio point out that these proposals are based on the demands they received from these organizations in the summer.

Fuentes de Podemos reaffirmed that the rise of the SMI will not mean the rise of the self-employed quotas as of January 1, when they are updated. The training led by Pablo Iglesias does not value the parallel negotiation of the Government with autonomous organizations.

Yes, there is a coincidence that the sooner a new contribution system for self-employed workers is being designed, based on a basic principle: it will be quoted according to income. This means that a part of this group may pay Social Security with bases below the minimum wage. This is what the President of the Government, Pedro Sánchez, and the Minister of Labor, affirmed in the morning in Congress.

This is also already being negotiated with the self-employed organizations. In the same proposal to update minimum bases for 2019, there was another proposal to reform the quotation system. It proposed four negotiation stages. One for those who enter less than the SMI, who would pay a flat fee (75 euros, as it appears in the document). And three other sections for those who win more to define.

This is a significant change for the majority of the self-employed, since now 85% of them contribute for the minimum base regardless of their income. This is because this group, unlike what happens with the general scheme (the system by which employees are quoted), in which there is no option and is paid according to salary.

The difference that has been seen this Wednesday regarding the proposal made by Social Security to the self-employed is when this new system would come into force. From the Ministry of Labor, where it is stressed that there is no time to have it ready on January 1, it is said that they will try to accelerate its start-up so that it is operational before 2020.


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