Changes are rarely easy and rarely straightforward to plan. Do not be surprised if changes touch the bidding system, social security, and the self-employed customer base. A leader directed a large portion of this group toward the leadership, and most will move from paying a fixed monthly amount to a system that bases contributions on actual income. So far, nearly nine out of ten have contributed to the minimum base, roughly 294 euros per month, and they must regularly calculate real income to set the quota.
A notable portion, about one in five—21.3 percent—still wonders how much they will pay as new regulations take effect from January 1, according to a survey by the ATA association. That’s why advisors are valued, says the head of ATA in the community, Alberto, reflecting the reality facing self-employed workers. Many rely on third-party services to handle relations with the administration. The trend will intensify with the reform.
As Ara explained, the reform aims to align contributions by the self-employed with their genuine income, improve the system’s sustainability, and ensure that benefits for government workers are protected. The fact that the majority contribute to the minimum base—88 percent in Alicante—also means lower incomes when illness hits or when pensions are calculated later. For comparison, the average pension for a salaried worker in Alicante runs around 1,184 euros per month, while a self-employed person often earns just over 800 euros.
Electricians and other construction-related trades moved into self-employment last year. Pilar Cortes notes this shift.
For this reason, the new system uses 15 distinct sections, with each self-employed individual positioned according to their actual net income. In 2023, those earning less than 670 euros per month paid a quota of 234 euros (less than 60 percent of the old rate), while earners above 6,000 euros faced quotas near 510 euros. In the following two years, these figures will be adjusted toward the target agreed upon by the Government and industry associations. The minimum quota is expected to fall to 204 euros, while the maximum rises to about 601 euros.
Up to six changes
Currently, for the peace of mind of the 21 percent who remain uncertain, self-employed workers will convey their forecast in January and February. The new quota takes effect on March 1. They may adjust it up to six times; those who do not adjust will keep paying the same fee as before, says Javier Pastor, general secretary of UPTA-PV. The outcome depends on how things develop.
In any case, the final amount due will be calculated by Social Security, using data from the Tax Office at the end of each fiscal year. If someone earns more than estimated, they pay the difference; if they earn less, the public institution refunds the excess.
While these changes mark a national shift, they are especially significant at regional borders. Alicante has a higher-than-national-average self-employment rate. In the province, up to 19.5 percent of workers are self-employed, compared with about 16.4 percent nationally.
Three million self-employed start quotas this 2023: Keeping accounts up to date will be crucial
Registered at the end of last year in the special Social Security regime for these professionals were 138,451 people, up 5,746 from before the pandemic. That increase is tempered by inflation and higher costs in some sectors, such as commerce or small industry, where the number of self-employed has declined recently. Construction remains strong due to reform-related work and maintenance, with real estate and self-employed professionals like consultants and lawyers also represented.
María Antonia Oliva, president of the Social Alumni College, notes that consulting firms report a sense of calm as clients are informed of changes in recent months. ATA reports a rise in inquiries by more than 70 percent. The full effects of the changes will become clearer in the coming months.
New quotas for self-employed in 2023: these are the important dates
More than 70 percent of those affected will pay the same or less. Calculations by the government and major associations indicate that over 70 percent will pay a lower wage than before, while a minority will see higher costs. Oliva emphasizes that although there is a benefit, the reform will especially help self-employed people with very low incomes, since those who have not yet achieved a similar income should not enroll in SMI. This point supports the argument for the reform’s fairness and practical impact.