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ARCHIVED - New rates for self-employed in Spain provisionally agreed
Lower earners in Spain will benefit from reduced social security payments
After nine long months of negotiations, the Ministry of Inclusion, Social Security and Migration has finally signed an agreement with representatives of the self-employed to makes changes to monthly autónomo payments that will see lower earners charged less and higher incomes pay more.
The agreement is expected to be officially approved on Wednesday July 20 and will divide the self-employed into 15 categories according to their monthly net income. Essentially, business owners whose net income is less that 1,300 euros per month will be on a reduced rate while social security payments will increase for those earning more than 1,700 euros.
The new system will come into play in 2023 and the social security payments will gradually increase for everyone over the next three years.
New social security payment system
1. The four categories who earn the least (between 670 euros and 1,300 euros net per month) will see their autonomo fee reduced by between three and 64 euros per month the first year, increasing to 94 euros by year three.
The biggest difference will be noticed by self-employed people who bring in less than 670 euros each month, with a saving of 1,127 euros from 2025. Likewise, those earning less than 900 will see a saving of 647 euros per year and people with a net income not exceeding 1,166 euros will have an annual reduction of 407 euros.
2. The fees for the self-employed who earn a net income of between 1,300 and 1,700 won’t change all that much as they will continue to pay 295 euros each month.
3. On the other hand, payments will increase for those bringing home more than 1,700 euros.
The new monthly fee will stand at 310 euros (16 more than it is now) for those earning up to 1,850 euros and will increase to 315 euros (21 more) for those between 1,850 and 2,030 euros.
This category of earners is broken down into numerous sections but at the top of the scale, people who earn between 4,050 and 6,000 euros net will have to pay an additional 126 euros per month, while anyone exceeding 6,000 euros will see their payments hiked up to 590 euros by 2025.
The agreement "is very important because it will improve the quality of life of the self-employed, their social protection" and will also "positively" affect the country from an economic point of view, María José Landaburu, general secretary of UATAE, one of the self-employed unions, concluded.
According to a spokesperson from the UPTA union, the proposal "meets the expectations set" and will lead to savings in fees for 2.3 million self-employed.
Image: Fotopik
Image: UPTA
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