New rates for ‘autonomos’ depending on their income

CREDIT: La Moncloa Twitter @desdelamoncloa

In what will be widely welcomed news, the Spanish Government wants to reform the social security payment system and bring in new rates for ‘autonomos’ (the self-employed). They say the current system of the same rate irrespective of your income is unfair and needs to bne adjusted to reflect monthly earnings.
The proposal would see rates for those who earn between 184 and 1,267 euros per month fall to a more meaningful and affordable amount.
A source speaking to 20 minutos said: “Following the agreement of the 2018 associations, recommendation five of the Toledo Pact and the pension agreement of July 1, a real income contribution system has been proposed for self-employed workers.”
“We start from an unfair system where, for example, a self-employed person with income of 400 euros pays the same as another with 6,000. This model corrects that inequality and is fairer.”
According to the source: “The reform being addressed not only affects the price, it does so to improve the protective action of the system.” They say what’s proposed is a “flexible system” of thirteen sections ranging from less than 600 euros per month to more than 4,050, with the possibility of moving between brackets during the year
The changes could according to the source, see the lowest paid saving up to 1,300 euros per year and those between 600 and 900 euros per month almost 600 euros a year. The latter is known to cover a very large number of workers.
“Flexibility allows each worker to adapt their contributions at times of higher and lower benefits. Those who would contribute more and, consequently, would receive more benefits are largely corporate, which also benefit from more deductions,” they conclude.
It is understood that the system would be phased in over a nine year period, with a re-evaluation every three years. The change it is hoped will make contributions fairer but also make it easier for people to start up their self-employment.
The next meeting to discuss implanting new rates for ‘autonomos’ based on their income will take place next week, a move that will receive the support of many Spaniards who are pushed into self-employment because of the high cost of social security at the lower end of the pay scale.

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Written by

Peter McLaren-Kennedy

Originally from South Africa, Peter is based on the Costa Blanca and is a web reporter for the Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]


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