Thursday, October 28

The minimum fee for the self-employed will increase by eight euros per month in 2022

The rise in the minimum quota for the self-employed in 2022 will be eight euros per month, up to 294 euros per month. The General State Budgets for the next fiscal year reflect the increase in the minimum contribution base for self-employed workers. As usual, this indicator is updated with the change of year and the Government has decided that the rise in 2022 will be 1.7%, according to “the inflation forecast,” the Secretary of State for Social Security explained this Thursday. , Israel Arroyo.

The Government proposes self-employed quotas of 90 to 1,220 euros per month in the new system for real income

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The Minister of Social Security, José Luis Escrivá, has appeared this Thursday at a press conference with his secretaries of State to explain some of the most outstanding items of the General State Budgets of the areas of his competence.

“The maximum contribution base will be 4,139.40 euros. The minimum contribution base will be 960.60 euros”, includes the Draft Budgets for next year. The vast majority of self-employed workers contribute by the minimum base, since until now they can choose how much to contribute to Social Security, compared to salaried workers, who contribute according to their wages.

The Government is working on changing the contribution system for the self-employed, so that they also contribute based on their income. The Executive’s plans are to approve the reform in 2022, but it will not unfold its effects until 2023.

Thus, next year the self-employed will still be able to choose for how much to contribute. In this matter, it must be remembered that contributing by the minimum implies that then the social benefits to which the self-employed are also the minimum. This situation is reflected in retirement pensions, which are much lower among the self-employed than among salaried employees, but it has also been evident during the pandemic with the ‘unemployment’ aid for the self-employed. This aid was 70% of the contribution base, which reached 661 euros in many cases because the workers contributed the minimum.

The Secretary of State for Social Security explained this Thursday that the increase in both bases (minimum and maximum) is 1.7%, as a result of the forecast of price increases for next year. Israel Arroyo has therefore considered that the bases “do not rise in real terms”, since they are updated according to inflation.

With this increase, the forecast is that the minimum base for the self-employed will become even more distant in 2022 from the minimum for salaried workers, which is established by the minimum wage. If the SMI were placed at 1,000 euros per month in January, as requested by the unions, the increase in the minimum contribution base for employees would be 3.6%, well above that agreed for the self-employed.

Regarding the General Regime, in which the vast majority of wage earners fall, the Government has agreed that the maximum contribution base will also increase according to inflation, by 1.7%, in 2022 to 4,139 euros per month. Pending the next block of the pension reform is the debate on the so-called “stop” of the maximum bases, so that higher salaries (above those 4,139 euros) contribute more to the system.

Eight and 19 euros of increase per month

In addition, the 2022 Budgets incorporate the contribution rates agreed by the Government and the self-employed organizations in 2018, the application of which had been delayed and was pending. Rates will increase from January by three tenths, from 30.3% to 30.6%.

Given the new bases and rates of contribution, the increase for the majority of self-employed will be eight euros per month (96 per year), while in the case of corporate self-employed the increase will be somewhat higher: 18.7 euros per month , 225 a year.

Among the majority organizations of the self-employed, ATA and UPTA have criticized the increase in the quota for the self-employed. UPTA considered that “it is not correct”, since “in 2021 the launch of the new contribution system based on real income has been repeatedly announced,” the association linked to UGT has indicated. However, this new system will not apply until 2023.

On the part of ATA, a member organization of the CEOE employers’ association, they have criticized that the rise occurs “without dialogue” with the self-employed groups. “There is no doubt that it is the best time to raise the quotas for the self-employed”, has ironized its president, Lorenzo Amor.

UATAE – an organization related to CCOO – have not criticized the measure, which is common every year and also finishes applying a 2018 agreement. This is the association that has most defended the need to apply a contribution system based on real income of the workers, who will adapt their contributions (and their benefits) to the business they have.

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