New quotas for the self-employed to Social Security: RETA Reform

The government plans that the self-employed will pay a new contribution ranging from €90 to €1,220 per month depending on the level of income. The new reform foresees that the self-employed will provisionally choose their contribution base according to their expected income.

Conten Table

The government plans that the self-employed will pay a new contribution ranging from €90 to €1,220 per month depending on the level of income.

This new design foresees that the self-employed will provisionally choose their contribution base (among 13 possible ones) according to their expected income. They will have the possibility to change their choice six times during the year to adjust it to their income.

This new system, which is expected to be approved in 2022 without producing economic effects until 2023, will have an adaptation period of nine years, during which the contributions of the self-employed will vary between €200 and €400, a number that will be progressively increased for those who earn more and will also be reduced in cases of income below the minimum interprofessional wage.

New quotas for 2023

Thus, self-employed persons with an annual income of €3,000 or less will pay a fee of €200. This amount rises by €15 if the self-employed person earns between €3,000 and €6,000. It increases again to €230 if the income is between €6,000 and €9,000. Only those who declare an income of more than €48,841 will pay the maximum, which will be €400.

New quotas for 2030

From 2031, when the 9-year adaptation period is over, the contributions corresponding to each of the thirteen brackets (with adjustments linked to inflation) will be €90 per month for those earning less than €3,000, €120 for those earning between €3,000 and €6,000 net per year, €185 for the self-employed earning between €6,000 and €9,000 and €235 for those earning between €9,000 and €12,600 per year.

On the other hand, those earning between €32,000 and €37,000 per year will pay €670 per month. Those earning between €37,000 and €42,000 will pay €800 a month, those earning between €42,000 and €47,000 will pay €935 a month and those earning more than €48,841 a year will pay €1,220 a month to the Social Security.

 

This system, announced by the Minister for Inclusion, Social Security and Migration, José Luis Escrivá, will be included in the first package of reforms that the Ministry plans to approve shortly, but will not be implemented gradually until 1 January 2022.

It remains to be seen whether it will finally be applied and under what conditions… For the time being, workers will continue to have to bear successive increases in self-employed quotas, at least as long as the current criterion remains in force.

The day-to-day work of an entrepreneur is a continuous effort to succeed in his or her business. At Blegal, we want to be with you every step of the way on the road to entrepreneurship. Contact us, we want to get to know you and help you.

 

Graphic credits.

Photo by Marten Bjork on Unsplash

 

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