Bill proposes self-employed contributions based on real income

Automatic summary, not yet reviewed

1. The bill would have self-employed workers contribute based on their actual annual net income, choosing a provisional contribution base within tier tables set each year in the State Budget Act, with a reduced table for those expecting to earn less than the minimum wage.
2. The chosen bases would be provisional: the following year, the tax agency reports actual income and Social Security adjusts the payments, refunding overpayments automatically or claiming shortfalls, with no interest or surcharges if paid on time.
3. The bill would expand the self-employed cessation-of-activity benefit with new grounds: a 60% cut in the whole workforce's hours or suspension of 60% of contracts, and unpaid debts held for two quarters by self-employed workers without employees, in both cases with a sharp drop in income. In these cases closing the business would not be required, and the benefit would be compatible with continuing to work as long as income stays below the minimum wage.
4. The bill would create two new benefits for self-employed workers in sectors affected by the RED employment flexibility and stabilization mechanism (cyclical and sectoral modes), consisting of a cash benefit and the managing entity paying half of the worker's Social Security contributions.
5. The bill would remove the part-time self-employed category and create a reduced contribution rate for people starting a self-employed activity, plus a contribution discount for those caring for a child with cancer or another serious illness.
6. The new system would be phased in between 2023 and 2031, with reviews every three years, and from January 1, 2032 final contribution bases would be set according to annual net income within the limits of the State Budget Act.
7. Transitional rules are proposed: in 2023 the base chosen for 2022 would be kept, workers paying on higher bases could keep them, and lower-income self-employed workers would have a minimum base of €960 guaranteed for pension purposes for six months in 2023 and six in 2024.
8. The bill would require all self-employed workers registered in the special scheme or in the sea workers' scheme to file an income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. return, and would take effect on January 1, 2023.

Who it affects

• Self-employed workers: They would contribute based on real income, with annual adjustment of payments, and could access reduced rates and discounts.
• Self-employed workers in financial difficulty: They would have new grounds to receive the cessation-of-activity benefit without closing the business.
• Self-employed workers in sectors affected by the RED mechanism: They could apply for new benefits to sustain their activity.
• Family collaborators and company partners: They would have a minimum contribution base they cannot choose below.
• Lower-income self-employed workers: They would have a €960 minimum base guaranteed for pension calculations during 2023 and 2024.

Words worth knowing

Base de cotización (contribution base)

The amount on which Social Security contributions, and later benefits, are calculated.

Cese de actividad (cessation of activity)

The situation of a self-employed person who stops or reduces their activity, similar to unemployment for employees.

Mecanismo RED (RED mechanism)

A tool allowing companies in a struggling sector to suspend or reduce activity, with protection for workers.

Regularización (adjustment)

The later adjustment of contributions once the year's actual income is known.

Salario mínimo interprofesional (minimum wage)

The legal minimum pay for a full-time job in Spain.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries