ministry Social Security aims to equalize freelance earnings with those of company employees
The ministry proposes measures to bring freelance workers closer to the pay levels of staff hired by companies. This plan, presented to the European Commission, suggests a long-term commitment to the public purse. It seeks to guarantee that workers see their salary at the end of each month and that new self-employment rules will deliver more stability for those who rely on freelance work.
The pledge aligns with the new self-employment contribution system, which will gradually harmonize the dues paid by freelancers with those of traditional employees. The goal is to enhance pension rights and improve working conditions for self-employed individuals, reducing the financial strain of sustaining a livelihood.
5.4 billion euros for salary equalization
The state plans to add 5.4 billion euros to equalize contributions from RETA to the General Regime. This contribution aims to improve the balance and to reach a target that increases public revenue by about 0.4% of GDP in 2032, a substantial rise compared with current levels. Under the reform, self-employed accounts surpassing 2,000 euros annually at the end of the period would see changes, according to calculations reported by elEconomista.
Sources of funding for these reforms include:
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A new net returns contribution system that reflects real gains.
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The creation of two new quotes to support the system.
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The adjustment of maximum pension bases.
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Incentives linked to pension delays and adjustments for late contributions.
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Ongoing labor reforms to modernize the framework.
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Macro-economic and demographic assumptions informing the projections.
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The anticipated reform focuses on managing retirement spending and ensuring a steady financial foundation for retirees within the public system. It anticipates that by 2050, revenue dynamics will shift, with projections indicating a gradual improvement in long-term fiscal health. The initial ten-year phase is currently prioritized, with expectations of broader effects in subsequent periods. (Source: Social Security projections)
Wages paid to workers are presently about 81 percent higher than those earned by self-employed individuals. This disparity translates into lower contribution brackets for freelancers and correspondingly reduced pension benefits, even as many pursue independent work. (Source: Social Security data)
In the future, the ministry’s plan aims to bring self-employed earnings into closer alignment with those of salaried workers. The objective is to secure a predictable livelihood for freelancers by ensuring that the required payments to the Treasury are kept up to date and sufficient to cover pension obligations.