The self-employed will have changes to their Social Security contributions next year. The progressive deployment of the new contribution system based on declared net income will modify the minimum contribution bases, the sections and, ultimately, the monthly fee paid each month. The obligations of the group of self-employed workers will go from 200 to 590 euros depending on your income and will increase for those who declare more than 1,700 net each month. Some self-employed workers will pay up to 90 euros more, while the 40% with the least income will have a certain relief of up to 30 euros per month, UPTA calculates.
The new contribution system based on real income is the result of an agreement between the former Minister of Social Security, José Luis Escrivá, with the main self-employed organizations in the summer of 2022. It began to be applied in 2023 and has a transition period of nine years. , until 2032. Along this path, every three years the new contribution ‘tables’ are agreed upon for the next three years. Thus, the social partners of the group must agree on the new sections during 2025.
The system has 15 sections and, for the next course, it will collect a lower lower limit: 200 euros per month the new lowest paymentcompared to 225 last year. There are also modifications in the upper part, with higher fees: 590 euros per month for the highest feecompared to 530 last year.
- As a novelty, the three lowest net income brackets (up to 1,125.90 euros/month) will have a relief of up to 30 euros and their installments will be a maximum of 260 euros per month.
- For their part, three other intermediate sections (from 1,125 to 1,700 euros/month) will pay the same: between 291 and 294 euros per month.
- The remaining nine sections, those that exceed 1,700 euros per month, will have to pay more in their corresponding monthly installments next year.
Social Security will require between 30 and 90 euros more for the net income generated. Your fees will range between 350 and 590 euros per month next year. You can consult your particular case in the table depending on the income you estimate:
This is how the new system works
The contribution system for real income of the Special Regime for Self-Employed Workers (RETA) introduced the possibility of changing sections every two months up to a maximum of six times in one year. It offers this flexibility because the self-employed are placed in one section or another depending on their income forecasts for each time of the year or their volume of activity.
Net income is calculated by deducting from income all expenses incurred in the exercise of the activity and necessary to obtain income for the self-employed person. On this amount, a deduction for general expenses of 7% is additionally applied (3% for corporate self-employed workers). The result is the figure that will determine the contribution base and the corresponding fee, explains Europa Press.
The self-employed must communicate their annual income forecast to Social Security and, during the year, adjust their contributions. Therefore, there is some room for maneuver to correct amounts paid more or less.
In any case, at the end of each fiscal year, after the Income Tax declaration, Social Security crosses data with the Tax Agency to regularize social contributions, returning or claiming the corresponding fees whether they are below or above forecasts and payments made. The regularization of quotas means that all self-employed workers who have been registered during a financial year must complete the mandatory income tax return.
Due to this new contribution system, all those people who have been registered as self-employed, even for just one day, are required to file a mandatory income tax return this year.
Social Security is currently regularizing the contributions of the self-employed for the 2023 financial year, the first with this system. The Association of Self-Employed Workers (ATA) indicated to ‘Europa Press’ that some 700,000 self-employed people would have paid more during the aforementioned year and Social Security will proceed to refund them ex officio in spring. These workers will be able to waive these fees in exchange for a better regulatory basis and, consequently, better benefits in the future.
Extra income from the reform: 0.4% of GDP
The Ministry of Inclusion, Social Security and Migration prepared a report in 2023 that justified the pension reform in which the new contribution system based on real income was included. In that document sent to the European Commission, it included the disaggregated effect of each measure.
One of the main sources of income will be the self-employed group due to the progressive increase in their contribution tables. The Executive estimates that 0.4% of GDP will additionally enter in 2032when their contribution is equal to that of employees, the equivalent of about 6,000 million euros current trends.
With this system, as provided for in the documents, the self-employed will contribute on average the same as the workers of the General Regime, that is, employees, whose average contribution base exceeds 2,200 euros.
Gradually They will assimilate their contributions to those of employees to also generate more rights in the form of a pension.according to the Ministry, despite the fact that at first it was defended that the effect of this reform was going to be net or null for the purposes of revenue collection.
By mid-century, the reform of the contribution regime for the self-employed plans to increase the system’s income by 0.6 points of GDP in total, according to the Social Security document, in exchange for greater protection with benefits: about 9,000 million of current euros.
Self-employed workers have historically settled in the lower brackets and suffer, as a consequence, lower pensions and contributory benefits such as cessation of activity – their unemployment –. This is still happening today: The pensions of the self-employed are 45% lower than those of employees. Two million pensions come from Reta and barely reach 869 euros on average. This gap aspires to be corrected over the coming decades, as is being achieved in the case of the female gender gap or the benefits of the vulnerable thanks to supplements.
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