After being approved last May, on July 5 the new General State Budgets 2018came into force, just one day after they were published by the Official State Gazette (BOE).
Some PGE that will be the first of President Pedro Sánchez and the new government of the PSOE and that, despite having been prepared by the Popular Party with Mariano Rajoy at the head of the executive and the controversies that have caused certain points, have decided to maintain them.
Some General State Budgets that arrive with multiple advantages, such as the increase in pensions, the increase in the salary of civil servants, the extension to five weeks of paternity leave, the reduction of VAT on cinema or the new tax deductions,but also with a major drawback for the self-employed: a new increase in the quota of self-employed.
An increase of almost 4 euros per month (3.87 € exactly),which will affect approximately 80% of the self-employed registered in the Special Regime for Self-Employed Workers (RETA), which means more than 3,200,000 self-employed workers.
The quota of self-employed increases by 1.4% every month
Although it was an open secret, a new increase of 1.4% of the contribution bases of the self-employed has finally been confirmed after the entry into force of the new General State Budgets.
A rise that was agreed by the National Federation of Associations of Self-Employed Workers (ATA) and the last Government of Mariano Rajoy, before the motion of censure was carried out, and that is already in force after the final approval on July 5 of the General State Budgets of 2018.
This increase of 1.4% of the contribution base of self-employed workers, means that self-employed workers who contribute for the minimum base and only for common contingencies, will go from paying a fee of 278.87 euros per month, which means a increase of 50 euros per year and 3.87 euros per month, compared to the previous fee of 275 euros.
On the other hand, the minimum contribution base of the self-employed will go from the current 919.80 euros, to a total of 932.78 euros.
What happens to the self-employed who contribute for the maximum base?
Self-employed workers who contribute for the maximum base, which represent the remaining 20% of the RETA, will also have to pay more.
The maximum contribution base will also be increased by 1.4%, going from the current 3751.26 euros, to the 3803.77 euros that will come into force with the new General State Budgets.
This means that the monthly fee of the self-employed who contribute for the maximum base will increase by 15 euros per month,reaching 1137.32 euros, compared to the current 1121.63. An amount higher than the minimum quota.
The contribution of the corporate self-employed is maintained
The new General State Budgets do bring good news for the corporate self-employed,who will be the great beneficiaries to see how their contribution base is maintained, at least during the remainder of 2018.
This means that the corporate self-employed will continue to pay a monthly amount of 357 euros for minimum contributions,which are set at 1199.10 euros.
New General Budgets: improvement for the self-employed
As we discussed at the beginning of the article, the new General State Budgets also offer very important advantages to the self-employed, such as the increase in pensions, new tax deductions and the extension of paternity leave.
Increase in pensions
The new General State Budgets have approved a 1.6% increase in contributory pensions.
This increase will benefit more than 1 200 000 self-employed pensioners who receive contributory monthly pensions,either for retirement, orphanhood, permanent disability or in favour of family members. The self-employed who obtain widowhood benefits,which are also considered contributory, will also benefit.
On the other hand, the rest of self-employed pensioners will see their minimum pension increase by 3%.
The General State Budget will derive 520 million euros to improve the conditions of the group of self-employed workers:increase in the flat rate of self-employed, bonuses for work-life balance, care of children and dependents, etc.
There will be more than 500,000 self-employed workers who will benefit from these 520 million euros and the tax reduction they entail, generating greater stability and enabling the creation of new jobs.
Extension of paternity leave
It has also been approved that self-employed workers who have just become parents will enjoy one more week on their paternity leave,increasing the period from 4 to 5 weeks.
Here it should be noted that the General State Budgets do not differentiate between self-employed and employed workers, and that both will enjoy this benefit.
In conclusion, it should be noted that with the approval of the new General State Budgets there will be a new increase in the
monthly self-employed quota,
but also that new advantages will come to be taken into account for self-employed workers.
Advantages that will benefit more than 500,000 self-employed and more than 1.2 million self-employed pensioners.
Contact AYCE Laborytax if you still have any doubts regarding the increase in the self-employed quota or the benefits approved in the new General State Budget.