Fees from 200 to 590 euros depending on net returns. That is the latest proposal that the Ministry of Inclusion, Social Security and Migration has presented to the most representative unions and organizations of the self-employed workers, according to negotiating sources. José Luis Escrivá’s department proposed this new range last Friday: the high section remains the same as in the previous offer and the low section falls by 30 euros, from 230 to 200. Like Escrivá’s latest proposals, this design of the quotation system For real income, it contemplates 15 sections, ranging from those less than or equal to 670 euros per month to those who invoice more than 6,000 euros per month.
The range of 200 to 590 euros would apply from 2025 onwards. In 2023, self-employed workers with a net income ―the difference between computable income and deductible expenses― below 670 euros would pay 230 euros per month and would go on to pay 225 in 2024. In the high bracket, above 6,000 euros, they would pay 500 euros in 2023 and 530 in 2024. This is the complete proposal of the Executive:
The self-employed who would save the most with this approach compared to the current system would be those with net income below 670 euros, who would pay around 770 euros less in 2023, around 830 less in 2024 and 1,130 in 2025. On the other side of the balance, those with net returns above 6,000 euros would pay in installments around 1,470 euros more in 2023, about 2,830 in 2024 and 3,550 in 2025.
If the figures proposed by Escrivá prosper, in 2025 the quota would fall for the self-employed with net income below 1,300 euros per month, it would remain the same for the section between 1,300 and 1,700 euros per month and would grow for the rest. There are 2.4 million self-employed with income below 1,700 euros. They are 77% of the more than three million self-employed workers in Spain. The most populated section is that of those who earn less than 670 euros per month, with 1.3 million self-employed.
The reduction of the low section to 200 euros is a definitive push from the ministry to get the negotiations off the ground. Between Escrivá’s antepenultimate proposal (245) and the penultimate (230) the drop was 15 euros, half that on this occasion. The highest quota is frozen, while between the penultimate approach (565) and the penultimate (590) it grew by 25 euros.
The proposal that reduced the quota to 230 already aroused a positive assessment in the Union of Professionals and Autonomous Workers (UPTA). “This proposal meets the expectations we have in order to reduce the contribution of the lowest incomes,” said Eduardo Abad, president of UPTA. This new approach reaffirms his position: “It would be incomprehensible that with the solution proposed to more than 2.3 million self-employed workers, the change of model in the contribution system would not be carried out.”
For their part, sources from the Union of Associations of Self-Employed Workers and Entrepreneurs (UATAE, linked to CC OO), indicate the following: “We recognize that there has been progress with the ministry after the meeting held and we continue working to finalize some fringes that allow us to continue advancing in improvements”.
The National Federation of Self-Employed Workers Associations (ATA) ―integrated into the Spanish Confederation of Business Organizations (CEOE)―, the organization that has expressed the most discrepancies regarding the Government’s proposals, mainly due to the growth of the quota in the upper section of the fork, already positively valued the agreement that raised the high section to 590 euros. “We are very close to a preliminary agreement, but it’s stuck with pins,” said Lorenzo Amor, president of the organization, at the end of June.
For several weeks the agreement seems to be just around the corner. On July 1, the general secretary of CC OO, Unai Sordo, stated that the union is “in a position to close immediately” an agreement on the new self-employment listing.
The relations between the participants in the debate have gone through different phases (according to the fit of the proposals) over the last few months. Although from the beginning everyone agreed on the importance of agreeing on this new contribution system – which was suggested and approved by the Toledo Pact – its development has not been as smooth as might have been expected.
In his first public speech as Secretary of State for Social Security and Pensions, Borja Suárez recently indicated that the reform of the contribution system for the self-employed “is being finished negotiating”, and was “absolutely cautious” about the “decisive moment” where the conversations are.
The Government has just approved a royal decree that expands from four to six the possibilities for a self-employed person to change their contribution base based on their income and, thus, change the fee to be paid. Together with this modification, the royal decree also establishes the need for self-employed workers to provide the Ministry of Social Security with a forecast of their annual income when they register, so that based on this projection, it is controlled, through the data crossing with the Tax Agency, if what was declared corresponds to reality. In the event that it is verified that there is a deviation, the difference will be charged, if it is above, or the difference will be paid to the self-employed person, if it is below.
Exclusive content for subscribers
read without limits