Social Security will regularise contributions to bring them into line with real income from 2025.
From 1st January, the contribution system for the Special Scheme for Self-Employed Workers (RETA) will undergo a profound transformation, in that contributions will be calculated on the basis of actual income, abandoning the model of choosing the contribution base in force until now.
This change, promoted by the government, with the aim of seeking greater equity in Social Security contributions, represents a radical change for the self-employed, who from next year will see their monthly contribution modified according to their declared income.
Until now, the self-employed could choose their contribution base within certain limits, regardless of their actual income. This system allowed some self-employed to pay a lower contribution, even if this also meant less social protection in the future. With the new regulation, this freedom disappears and a system is established which, according to the government, seeks greater fairness and progressiveness in contributions.
How will the new system work?
Social Security has established 15 monthly net income brackets, ranging from €670 to €6,000. Each bracket will be assigned a specific contribution, ranging from €200 to €590 in 2025.
To determine the corresponding bracket, the self-employed had to inform the Social Security in 2023 of their projected income for the year 2025. In the course of the year, workers will be able to change their contribution base up to six times, adapting it to changes in their actual income.
Who gains and who loses?
According to estimates, self-employed people with lower incomes could see their monthly contribution reduced by up to €30. However, those with incomes above €1,700 per month will see their Social Security contribution increase, paying between €30 and €90 more per month, which could mean an annual increase of between €360 and €1,080.
The concerns among the self-employed.
This change in the contribution system has caused concern among the self-employed, especially among those with medium and high incomes, who will see their tax burden increase. In addition to the uncertainty about the evolution of the economy and the pressure of the rising cost of living, there is now uncertainty about the real impact that this new contribution will have on their personal finances.
The future of self-employment at stake
The new RETA contribution system represents a significant change for self-employment in Spain. The government’s aim is to make the system fairer and more supportive, but its success will depend on its ability to adapt to the reality of the self-employed and not become an obstacle to entrepreneurship and the development of self-employment people.
Source: Informacion.es
