As a self-employed person and a parent, does he or she have a right to any pension supplement?
It remains unclear, or rather, Social Security does not want to clarify it. There is currently a wait for a new ruling from the Court of Justice of the European Union (CJEU) to determine whether men also have a right to the gender gap supplement in pensions. (CJEU ruling context and ongoing deliberations.)
In 2021, the CJEU ruled that the supplement, which had been granted only to women, was discriminatory against men, a stance later echoed by several courts, including the Supreme Court. Yet Social Security appears reluctant and has not awarded those supplements. The decision from the Court of Justice of the European Union will ultimately decide the status for all. (Legal precedent and current stance.)
Nevertheless, it is advisable to apply if meeting certain conditions, namely:
1) Eligibility for survivor pension upon the death of the other parent and shared children who may receive orphan’s pension.
2) Eligibility for a contributory pension (earned through mandatory contributions) or permanent disability pension if work history was affected by the birth or adoption of a child. This depends on specific contribution requirements tied to the pension system over a person’s career.
For this year, the child supplement has been fixed at 33.20 euros per month, according to a transitional provision of Royal Decree-law 2/2023, dated March 16. This provision adds a 5% to the general pension revaluation rate, and the period 2024-2025 is projected to reach a 10% rate. (Policy update and calculations.)
I am salaried and also self-employed. In May, the excess contribution should have been received, but it has not arrived.
This was the case until this year. Following the reform of the Special Scheme for Self-Employment (RETA), which took effect on January 1, 2023, contributions are based on a provisional base corresponding to expected earnings for the year. The provisional base becomes definitive only after annual tax declarations are reconciled, which is expected to take place from October this year, aligning 2023 contributions. (RETA reform details and timeline.)
If contributions matched declared incomes to the Tax Agency, no adjustment will be needed. If contributions were higher than appropriate, the excess will be returned; if lower, the difference will be claimed. Once the process completes, contributions are considered definitive, and any excess refunds may be issued if dual activity existed in 2023. (Contributory reconciliation mechanics.)
This is a consequence of the reform. Social Security will not refund until the contribution base is deemed definitive and the amounts contributed are confirmed. The refunds can take place only after the income tax campaign, so delays of nearly a year are possible due to dual activity. A wait is likely. (Refund timing and process.)
How do changes in agreements affect the situation? Which agreement applies to a given business?
The central government has approved, somewhat behind closed doors and without broad social dialogue, the supremacy of regional and provincial agreements over national ones. This shift was not part of the reform negotiated with employers and unions. (Policy shift and implications.)
First, this move signals a disregard for social dialogue, suggesting that the government only values dialogue when it aligns with its positions. If one disagrees with the debate, it seems new mechanisms or agents might be introduced to steer outcomes in line with political aims. (Critical assessment of governance.)
Second, it introduces new obstacles for businesses, especially for small and medium-sized enterprises and the self-employed, undermining market unity and the potential for harmonizing conditions by territory. The self-employed will need to decide which agreement to apply based on what benefits workers the most, as if there were nothing more pressing than reading regulations. (Economic impact and regulatory fragmentation.)
So yes, it affects them. More complexity and less time to focus on what should be done—selling products and services. (Practical consequences for operations.)