After a long period of negotiation, the Government has communicated the approval of the increase in the Interprofessional Minimum Wage,which, with retroactive effect, becomes 965 euros per month,which represents an increase of 15 euros, since the previous amount was set at 950 euros per month. This increase affects the self-employed, who will see their Social Security contributions increased.

The Government recently announced an increase of 15 euros per month in the Minimum Interprofessional Wage,which began to take effect on September 1, 2021 with retroactive effect.

But, although this increase is designed for employees, the increase in the Minimum Wage also means an increase in the quotas of the self-employed,after this increase, contemplated for 2021, had been postponed due to the coronavirus pandemic.

Specifically, the fee for professional contingencies rises,which goes from 1.1% to 1.3%, and the fee for cessation of activity,which goes from 0.8% to 0.9%. On the other hand, the quotas for common contingencies and vocational training remain intact, with 28.3% and 0.1% respectively.

With this increase, the total quotas of the self-employed go from 30.3% to 30.6% of the contribution base.

I am self-employed and need advice

How does the increase in the Social Security contribution affect self-employed workers?

The increase in the Social Security contribution will affect, depending on the contribution base of the self-employed worker:

  • Minimum base:

If you contribute for the minimum base (944.40 euros per month), the increase will be almost three euros per month,going from 286 to 289 euros.

  • Maximum base:

If you quote for the maximum base (4,070.10 euros per month), the increase will be 12 euros per month,going from 1,233 to 1,245 euros.

This means that the increase in the Minimum Interprofessional Wage will have an increase in the quota of the self-employed from 3 to 12 euros per month,which will mean an increase of between 36 and 144 euros per year.

With the aim of facilitating this procedure for self-employed workers, the Social Security Electronic Office makes available a tool to calculate the new amount to be paid, as of September 26.

What other changes are expected?

Once this increase has been approved, the quotas of self-employed workers could have new changes soon. Recently, José Luís Escrivá, Minister of Inclusion, Social Security and Migration, has proposed a reform of the system, to create a quota system with a total of up to 13 tranches,with the aim of adjusting them to the real income of self-employed workers.

These changes could begin with a transition stage,which is planned for 2023. In any case, the idea is that the self-employed have these 13 tranches, which will be more adjusted to real income, and whose assigned quotas are between 90 and 1,223 euros.

This measure, which at the moment is pending processing and negotiation with the social partners, aims to offer the possibility to the self-employed to change the contribution base

up to six times a year,for the four that currently exist.

Contact AYCE Laborytax