Three million self-employed individuals will notice changes in their social contributions as the year unfolds. On January 1, contributions for those earning the most from their activities rise month by month, while those with modest returns see declines. The adjustment happens automatically, and Social Security payments are processed in the last week of January just like every month. Industry groups advise self-employed workers to periodically review how their income and expenses are shifting to avoid surprises in the tax statements. The Treasury demands noticeable payments at times, and the system is sometimes described with a phrase that mirrors the frustration of the moment.
By January 1, 2023, the current self-employment contribution framework took effect. It marks a shift in logic for this group, which for years had contributed according to a voluntary quota, regardless of how their business fared. In practice, until last year a self-employed person invoicing 1 million euros could contribute the same amount as someone invoicing 1,000 euros.
After negotiations with groups representing the sector, the government approved a new regime that assigns each member to a special self-employed category with RETA, where the fee is based on net returns — in simple terms, on what is earned and reinvested in the business.
The agreement between management and social actors implements gradually over three years, from 2023 to 2025. The fees are managed through a staged system. Each year, the fee for the relevant category changes to encourage a more gradual shift: those with higher returns pay more; those with lower returns pay less, within the framework of the established minimums.
New quotas imply modest changes. There are small discounts for those who pay the least and increases for those with higher returns, with the minimum wage per period sometimes playing a role. Figures may vary slightly depending on whether each self-employed person meets the projected increases in their contributions under the Equity Mechanism Intergenerational (MEI).
This revised contribution effort also affects the amount of benefits to which self-employed workers are entitled, since benefits are calculated using reference premium bases from prior months. Higher contributions translate into higher future benefits, and the opposite is true as well.
As the president noted, the transition process was not without controversy. Some wages were indexed to inflation and increased rapidly at the start of the year, creating friction for parts of the group.
Possible payments after the income campaign
Government calculations show that two-thirds of self-employed workers in the current framework see fees that are similar to or slightly lower than under the old system. This helped smooth the transition, but there could be surprises starting with the 2023 tax return.
By the end of 2022, many self-employed workers asked whether they would pay more or less under the new regime given the changes. Because the move from the old quota to the new quota was handled automatically by Social Security, many consultations faded, and some workers did not adjust their quotas to match the new philosophy. The question remains: this could mean deeper pockets when spring arrives.
Experts warn that a self-employed person with a high income used to paying the minimum could feel uneasy. Estimates from the leadership suggest about 12% of self-employed workers adjust their contributions during the year either up or down, partly to secure a better retirement and other long-term goals.
RETA members have up to six time periods to adjust the fee they pay during the year. If they fail to do so and their actual returns exceed declared returns, the Treasury will demand the difference after the income tax return is filed. The gap between declared and paid amounts can force several self-employed workers to make unpredictable additional payments.
That is why industry groups urge regular reviews of income and expense trends to correct imbalances and adjust the fee if needed, ensuring large upfront payments are not required later. They acknowledge that any new regime introduces some legal uncertainty, especially when determining which items count as earnings and which counts as business expenses.
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