Saturday, June 10

This would be your self-employed quota with the system proposed by Minister Escrivá | CALCULATOR

  • Social Security finalizes a new system for self-employed workers to pay based on their income, with a transition period until 2031

The Ministry of Social Security is negotiating with the organizations of freelancers, employers and unions a new proposal for self-employed workers to move towards a contribution model based on their income. The team of Jose Luis Escriva has designed a scheme of 13 tranches, where those with higher net returns must pay more and those with lower returns must pay less.

It is a draft that is not yet closed and that may undergo changes of greater or lesser importance, but that will settle the calculation of the new fee based on the income of the self-employed

Currently self-employed workers contribute according to the quota they choose, regardless of whether they earn more or less. The most frequent fee is the minimum, which is 294 euros per month. Once the new system comes into force, the worker must calculate his quota based on his income.

To define what income you have, you must make a subtraction between what you enter as a result of your activity and discounting those deductible expenses.

This last section is yet to be defined and may undergo changes, but currently self-employed people can deduct items such as raw materials and merchandise necessary for their activity, the salaries of their employees (if any), the rent of your store, works or repairs, financial expenses and a long list of concepts that always have to be directly linked to your business, you must be able to duly justify them and record them in accounting. From the sum and subtraction of these two variables, the monthly installment to be paid will come out.

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The scheme proposed by Escrivá is progressive, it does not come into force all of a sudden and the fee that a self-employed person will have to pay the first year of validity will not be the same as when it is already 100% in 2031. At first it starts with a small gap between the highest and lowest rates, and then grows as the new legislation comes fully into force. At first the lowest fee will be between 281.52 euros (if they earn less than 600 euros per month) and 351.9 euros (if they earn more than 4,050 euros); to progressively move to a range of between 183.6 and 1,266.6 euros per month.

The business of the majority of freelancers is characterized by not having fixed income and some months go better and others worse. Given this, Social Security has devised a flexible scheme in which the self-employed can change up to six times a year of quota, depending on how the business goes. The operation, from the beginning, will be as follows: the self-employed person will make an estimate and choose which quota best suits their income forecasts. You will pay that fee, but if you see that you enter more or less than expected, you can process the change and go on to pay more or less. And at the end of the year, the Treasury will make a cross between your contributions and your income and if you have paid more, it will refund you and if you have paid less, it will demand the difference.