The Government has proposed a new contribution system for the self-employed so that they pay based on their real income. The new mechanism – which the Executive intends to approve before June 30, 2022 so that it has economic effects as of January 1, 2023 – introduces 13 income tranches ranging from 600 euros per month to more than 4,050 among the that self-employed workers will be able to change up to six times a year.
The model to which Cadena SER has had access establishes the following sections based on the real income of each self-employed person in 2023. From that date, a period of 9 years would be established for which the sections with the highest income would go progressively increasing its price until 2031. In this way:
– The flat rate is maintained for 2 years at € 70 for those who earn less than the Minimum Interprofessional Salary
– Those who charge less than 900 euros per month net would pay a fee of € 281.52 / month, which implies a discount of 7 euros compared to the current rate, that is, 2.5% less than what they pay in the present. This reduction affects, according to the Executive’s calculations, more than a million self-employed.
– Those who enter up to 1,125.90 would pay a fee similar to the current one. Social Security estimates that 2 out of 3 self-employed will pay less than under the current regime
– Those who charge more than € 1,125.90 will see their fee increase to € 351 (an increase of 21%) in 2023, a fee that will continue to increase over the next 9 years.
The fees are progressive in relation to the income of the self-employed. The Government proposes nine years of transition to adapt to the system, although the situation would be evaluated every three years.
Social Security calculations
According to Social Security calculations, the self-employed with the lowest incomes would pay up to 1,300 euros less per year, while those with benefits of between 600 and 900 euros per month, a very large group, almost 600 euros per year.
The new structure follows a real-income contribution system that tries to reverse an “unfair system” in which workers with lower returns pay a fee similar to that of others with higher returns.
The flexibility of the new system, according to the Executive, would allow each worker to adapt their contributions at times of greatest and least benefits. Thus, those who would contribute more and, consequently, would receive more benefits are largely corporate, which also benefit from more deductions.
The Government has proposed an intense calendar of negotiations to the organizations of the self-employed. From now on, meetings will be held every Monday until June 30 for the new system to come into force in 2023, although organizations such as UATAE have proposed to Social Security that the entry into force take place as soon as an agreement is signed.