The self-employed with higher income will triple their contributions

Despite the “good harmony” that, according to the Government, reigns in the negotiation of the new self-employed contribution system, the Executive’s proposal raises protests due to the disproportionate fee increases that it will mean for this group in the sections in which they present the highest income.

Specifically, as highlighted by the National Federation of Self-Employed Associations (ATA), Minister Escrivá’s proposal implies that a self-employed worker who invoice 3,000 euros monthly You will see your payments to Social Security multiplied by three within a three-year period, once the adaptation period of the new contribution system has been launched, starting in 2023, which will last until 2031.

Such bulky increases will also be noted in smaller income brackets. Not in vain those self-employed who invoice 2,300 euros per month will pay in 2031 a fee of 728 euros, more than double (150% above) of the payments they now face.

It should also be taken into account that the proposal of the Ministry of Social Security does not take into account the expenses not tax deductible for the self-employed. Consequently, what purports to be a more progressive and fair system from the point of view of these workers runs the risk of not taking into account what their real returns are.

Sources close to the Government assure that “two out of every three freelancers will see their dues reduced, but ATA assures that the real result will be the creation of a “situation of distortion and inequality in the group” with special damage to workers capable of achieving higher turnover.

For its part, without being so critical, the UPTA organization explains the Economist that will propose “reducing and simplifying the sections” by half, being reduced to six or seven. “We must lower the Government’s proposal for the group with net income of less than 6,000 euros. Likewise, we are going to try to join several sections of the self-employed that are between 12,000 and 20,000 euros per year because we believe that it is a section that can be combined “, according to Eduardo Abad, president of the association. In the same way, UPTA considers that the last three sections must be “practically united”, those that correspond to an amount above 25,000 euros.

UPTA will propose on Monday the reduction of the sections by half compared to the 13 now proposed

The association also makes reference in its proposal to maintain a special contribution for the self-employed who are part of the Artist’s Statute. “We think they have to have a quote especially because the performance of this group in particular is very low”, Abad clarified.

shorten deadlines

For her part, the general secretary of Uatae, Maria Jose Landaburu, has asked to shorten the deadlines set for the transitional regime, since for the purposes of the Union of Self-Employed the self-employed who earn the least “cannot wait 9 years for the situation of the current regime to change until they pay a fair fee”.

For this reason, he warns that the Government must speed up this transitory step. “We are convinced that it is possible to advance the proposal so that those self-employed with less income begin in 2022 to pay a fairer fee and according to their income”, he added.

For its part, the ministry of Jose Luis Escrivá understands that this new method will serve to “reinforce” the social protection of this group and will provide “greater justice” to the system. This approach also includes the possibility that the self-employed can change sections up to six times a year and maintains the flat rate, consisting of a reduced fee during the first two-year period of activity. Of course, only the self-employed with incomes below the SMI will be able to take advantage of this benefit.