Catalonia’s Self-Employed Seek Family Support Measures and Pension Reform Insight

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The employers’ associations and the most representative unions in Catalonia are calling on the Government to establish a new aid program aimed at supporting self-employed individuals with dependent children when paying for babysitters or daycare. This request appears in the latest report presented on Friday by the Consell de Treball, Econòmic i Social de Catalunya (CTESC), an body that unites Catalan social agents and advises the Generalitat Government. The proposal mentions a program called the Bonus Babysitter, noting a wage gap faced by workers regarding maternity or paternity leave and the need for supportive measures.

CTESC highlights significant reconciliation challenges for self-employed people due to long and irregular working hours that affect family time more than in salaried roles. Latest INE data show self-employed workers averaging about 40.4 hours per week, compared with around 32.1 hours for the general workforce, acknowledging that part-time contracts can skew these figures.

For this reason, CTESC publicly urges the government to consider new measures that ease the balance between work and family life. While the current report does not spell out whether the Bonus Babysitter would be administered through Social Security or directly by the Generalitat, it encourages the latter to explore options in this direction.

The report notes that the self-employed population in Catalonia stands at roughly 522,000 and remained relatively stable during the peak of full employment through 2021. There were declines in certain sectors such as commercial and technical services, construction, and hospitality, signaling a partial recovery of self-employment losses suffered in the first year of the pandemic. This resilience points to a pragmatic approach within the community, as many self-employed individuals explore new activities to adapt to the current environment.

The near-term outlook includes the effects of a reform to the contribution system approved earlier this year through an agreement between the Government and social actors. Beginning January 1, 2023, self-employed individuals must contribute based on income from their activity rather than by the quota they voluntarily chose in the past. This shift will influence the evolving composition of the self-employed workforce.

retirement gap

One major challenge ahead is closing the pension gap between the self-employed and traditional workers. CTESC data show that a currently retired self-employed person receives 37.4 percent less pension income on average, a deficit that has barely changed in recent years and is largely driven by many choosing to contribute at the minimum wage level, leaving a modest pension in retirement.

To improve income prospects for RETA members, CTESC proposes options such as allowing active retirement. This would permit a self-employed person to continue earning income while collecting 100 percent of the pension, regardless of whether they employ workers. CTESC also requests that the Generalitat establish a dedicated office within the Ministry of Enterprise and Work to advise freelancers, including those seeking to reinvent their business, on how to improve outcomes and navigate the changing landscape of self-employment.

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