Spain Proposes New Social Security Payment Thresholds For Self-Employed
Spain News
Published: 27 June 2022 10:35 CET
Updated: 31 January 2023 10:35 CET
Spain’s Minister for Inclusion, Social Security and Migration, José Luis Escrivá (pictured), announced his latest plans on Monday which would see an adjustment to the social security thresholds for self-employed workers.
The plans which were put to Spain’s self-employed associations the UPTA, ATA and UATAE at a meeting on Monday would see a new range of contributions with workers paying between 230 and 590 euros per month.
This is in comparison to the current minimum which is set at 294 euros per month.
If approved, the amount that a self-employed worker will pay under the new plans will be based on their net earnings. Those earning the least will pay contributions at the lower end of the threshold, with higher earners paying closer to the 590 euros per month.
If the latest proposals were to go ahead, those with a net income of less than 1,300 euros per month would pay less in social security payments than they do now.
The proposed contribution thresholds are 15 euros lower than suggested in previous proposals and would see those with net returns of less than 670 euros per month paying 230 euros per month in contributions which is 64 euros per month less than they do now. This would give them a yearly saving of 767 euros.
Those with a net income of between 670 and 900 euros would also pay 44 euros per month less at 250 euros.
The other groups that would pay less would be those with a net income per month of between 900 and 1,125.90. This group would pay 24 euros per month less.
Finally, those earning between 1,125.90 and 1,300 euros would also be better off paying 4 euros per month less in contributions.
Those in the middle with net incomes of between 1,300 to 1,700 euros per month will not see any change and will continue to pay 294 euros per month.
At the higher end of the scale, those earning between 4,050 and 6,000 euros would have to pay 530 euros per month, with those with a net income of more than 6,000 euros per month having to part with 590 euros per month.
According to president of the UPTA, Eduardo Abad, a pre-agreement is close and it “meets with the UPTA’s expectations in order to reduce the contributions of those on the lowest incomes.”
“We will accept this proposal as long as it is executed in January 2023 and that the progressivity system for those on the highest thresholds can be made more flexible,” he confirmed.
Source
https://www.20minutos.es/noticia/5021607/0/el-gobierno-propone-cuotas-de-autonomos-entre-los-230-y-los-590-euros-al-mes-en-funcion-de-los-ingresos-reales/
https://cincodias.elpais.com/cincodias/2022/06/27/economia/1656322469_921658.html
Image Credit: La Moncloa
