White smoke for the reform of the self-employed. The Government and the representative associations of the group tied this Tuesday a principle of agreement on the new system of Social Security contributions based on real income that will be in force for the next three years. With the approval of the businessmen, after the Government agreed to apply a transition in the quotas that will be applied in 2023, 2024 and 2025, the Executive will be able to complete the reform of the Special Regime for Self-Employed Workers (RETA).
In short, the agreement sets a band of quotas for 2023 that goes from 245 euros per month for those who obtain net returns below 670 euros per month to 500 euros for those who earn above 6,000 euros per month; for 2024, the minimum fee will be 237 euros while the highest rate will be 530 euros; to reach the end of the application period in 2025 with a monthly fee of 230 euros for those who earn less than 670 euros per month and 590 for those who earn more than 6,000 euros.
With the agreement of the 15 sections and their corresponding quotas, the Government manages to meet ‘in extremis’ the milestone committed to with Brussels for July 30 and that would allow it to receive 6,000 million euros of reconstruction funds. Although, the Minister of Inclusion, Social Security and Migration, José Luis Escrivá, has sweated ink in the last year and a half to be able to tie the final agreement, in which he has had to give in to the demands of businessmen to reach a consensus broad social agents. In fact, as reflected in the drafts prior to the final table of contributions that will be in force from 2023 (see graph), the Executive has yielded in its claims to increase quotas, especially for the self-employed with higher incomes, cutting back on more than half the increases proposed in the first instance.
This list of Social Security contributions will be incorporated into the royal decree that was signed this Monday in the Council of Ministers with the legal framework of the reform of the RETA and will be incorporated into the Law of General State Budgets so that it enters into force from 1 January of next year.
With the new system, the self-employed will be obliged from the next to make a declaration to the Social Security of net income forecast for the whole year, according to which they will be inserted in one of the 15 planned sections with their corresponding amount. Tranches may be changed up to six times a year if the net yield forecast varies, upwards or downwards. And at the end of each year they must settle accounts with Social Security, which will claim the difference if they have contributed less than what corresponds to the level of income for the year and which will return such difference if these contributions are greater than the due ones
