Tuesday, March 21

Escrivá proposes self-employed quotas between 202 and 1,123 euros and remodeling the ‘stop’ due to cessation of activity

New proposal for self-employed Social Security contributions according to their “real income”. The minimum fee would be about 202 euros per month and that of those who have higher benefits would reach 1,123 euros per month, according to negotiation sources. After criticism for its second offer, especially among the progressive organizations UATAE and UPTA, the Government has proposed reducing the contributions of workers located in the lowest income brackets somewhat, below 1,500 euros per month, and recovers a section –of the two eliminated– among those who win the most.

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In addition, the ministry led by José Luis Escrivá has detailed a little more this Monday its plans to reform the so-called ’employment of the self-employed’, the benefit for cessation of activity of this group of some 3.3 million workers. The Government wants to create an extraordinary benefit, as it has existed in the coronavirus pandemic, which would have two modalities (for cyclical crises and another for structural crises), and also offers some changes to the existing and very restrictive ordinary benefit.

The new quota proposal has been communicated at the end of this morning by the Ministry of Social Security to the self-employed associations UATAE, ATA and UPTA and to the social agents in the negotiation that tries to reach a social agreement in this regard. The Government is insisting to the organizations that the debate has to be closed promptly to send the bill to Congress and that it be debated by the political forces.

Fees from 202 to 1,123 euros per month

How would the monthly contribution of the self-employed be according to this third proposal? As the following table shows, according to sources from the negotiation to elDiario.es.

The Ministry has moved tab, as progressive associations requested, reducing the contribution of those who have less income. Today the minimum fee is 294 euros per month. With this third offer, the minimum fee would be 202 euros per month for workers with incomes of less than 600 euros per month. The amount is reduced compared to the last 214 euros proposed, although it is above the first offer from the Ministry: 184 euros per month.

However, Social Security further reduces the contributions of other steps of “real income” from the bottom, although above the minimum wage, to 1,500 euros per month. The minimum fee for the section with “real income” between 1,125.9-1,300 euros per month drops from 316.71 euros per month to 290 euros, and the contribution of the section with yields between 1,300 and 1,500 euros would also fall from the 391 euros proposed in the second offer at 382 euros per month of the latter.

On the opposite side of the table, among the self-employed with higher incomes, the Government recovers part of its first approach of higher contributions from professionals who earn the most. In its second offer, Social Security eliminated the two highest quotas initially proposed and this Monday it has recovered one of these steps. Thus, the minimum fee for the self-employed with higher “real income” would be 1,123 euros: neither the 1,267 euros per month initially raised, nor the 991 euros of the second proposal.

In addition, the proposal has been modified to arrive at the concept of net returns or “real income”. From a reduction of 5% offered by Social Security, this Monday has gone to “a reduction of 7% of net returns for current expenses for self-employed individuals and 3% for companies,” confirms Social Security.

New ‘unemployment’ benefits for the self-employed

Lastly, the Social Security has further specified Escrivá’s offer to extend the coverage of the ‘unemployment’ of the group, the benefits for cessation of activity. It involves the creation of an “extraordinary” benefit, which the minister mentioned as “for emergencies”, which would be of two types, following the logic of the Red Mechanism of the new ERTE. An extraordinary benefit is proposed for “cyclical” crises and another for “structural” crises, for the self-employed and businesses that try to requalify and change their course.

Secondly, a review of the current ordinary dismissal is proposed, with a modality due to “force majeure” and another “for economic reasons”, which would become more guaranteed for self-employed employers of employees.

It is “a new scheme of protective action for this group, with a new design in the benefits for cessation of activity, more aimed at covering the different casuistries that the self-employed may face (cyclical situations, structural crisis or dismissals due to economic reasons),” they indicate in the Ministry.


Graphics by Raul Sanchez.