The Ministry of Inclusion, Social Security and Migration plans to reconvene with civil society groups this coming Monday to discuss a unified self-employment contribution framework for 2023-2025. The focus is on aligning net income with the contribution levels for freelancers and social agents under a single bidding system.
The gathering, postponed from Friday to Monday, will start at 12 noon and comes shortly after the government presented its latest proposal to the involved parties. The proposed monthly contributions for self-employed individuals would range from 245 to 565 euros, depending on net earnings.
The administration’s recent proposal, which raised Chapters 13 to 14 and refined the previous lower income group (under about 670 euros per month) and its mid-range divisions, ties the net income to a higher recommended contribution for the self-employed. Specifically, the ministry noted that workers earning less than 670 euros monthly would pay 245 euros, while those earning more than 4,050 euros would see a 565-euro monthly contribution, a figure that is 15 euros above the prior document and 5 euros less than the earlier proposal in some ranges.
For net returns between 1,700 and 2,300 euros per month, the ministry outlined three bands. It is proposed that self-employed individuals earning between 1,700 and 1,850 euros per month contribute 370 euros monthly, which is 30 euros less than the prior suggestion within the 1,700 to 1,900 euro bracket.
At a later point, Podemos pressed the PSOE to push for contributions up to 1,256 euros, effectively doubling Escrivá’s initial offer for the self-employed.
In the last sector-specific proposal released on May 27, the government had offered 440 euros for the 1,900 to 2,330 euro band; this section has now been split into two: 400 euros for 1,850 to 2,030 euros, and 440 euros for 2,030 to 2,330 euros.
With these adjustments, the government’s plan comprises fourteen segments. Self-employed individuals with a monthly net income between 670 and 1,700 euros would pay between 260 and 294 euros to the social security fund, while the remaining eight bands, with monthly net incomes ranging from 1,701 to 4,050 euros, would see payments between 370 and 565 euros per month under the latest proposal.
José Luis Escrivá, the minister overseeing inclusion, social security and immigration, warned last Thursday that if an agreement cannot be reached with self-employed associations on the new contribution model, the government will proceed unilaterally. Yet he remains hopeful, noting that reconciliation appears imminent and a rapid conclusion is likely, though no deadline has been set. He added that negotiations have progressed through small adjustments and would be surprising if a deal did not emerge.
Self-employed groups are divided on the plan. UPTA has urged immediate government action, even if not all stakeholders agree. ATA, however, rejects the government’s proposal as unsuitable. The ATA leader argued that a person earning 1,700 euros per month would face an annual contribution increase of about 900 euros, a 26 percent rise that they deem unaffordable. Uatae stated it would attend Monday’s meeting with a constructive stance but would not back a proposal that applies to those earning up to 670 euros monthly, as it would demand more than 50 percent of revenue in most cases. They labeled this as neither reasonable nor socially sustainable. They also called for a significant reduction in contributions for lower-income freelancers who do not need a transition period to pay less than their earnings.
Uatae further suggested that reform should grant rights as well as obligations, aiming for a bolder approach to demobilization reform. UPTA’s Eduardo Abad hopes the upcoming discussions will result in a final, comprehensive text. Recent government communications indicate that RETA contributions will be linked to annual income declared by self-employed workers, with the tax authority receiving the data as freelancers carry out their professional activities. The draft contemplates calculating economic amounts to determine contributions and last monthly installments, factoring in work income, movable capital and activity-based earnings. A 7 percent overhead deduction is generally applied, with two exceptions: for those in management roles or those providing specific services for a defined period, the deduction drops to 3 percent, especially when leadership control or significant labor capital participation is present.
The document also requires declaring estimated earnings when registering for the Self-Employed Regime, and any changes to contributions must be accompanied by updated income expectations. It outlines a process to request changes up to six times per year, with base adjustments taking effect on March 1, May 1, July 1, September 1, November 1, and January 1 of the following year, provided requests are submitted between November 1 and December 31.
Temporary or permanent activity cessation provisions are included, along with provisions for a special program to support self-employed individuals affected by economic cycles or sector-specific downturns. In both normal and extraordinary scenarios, eligibility requires a significant impact on employment levels. Under the circular RED provisions, a 75 percent revenue reduction is needed for two consecutive quarters in the sector, and a 50 percent reduction in industry events may be required, along with other criteria.