More than three million self-employed workers will see a shift to a bidding system starting January 1, 2023. If up to now each self-employed person chose a monthly quota based on personal preference, the new approach requires contributions aligned with the actual income earned. Associations consulted on the reform agree that this change will encourage self-employed people to maintain up-to-date balance sheets so they can adjust payments during the year and avoid surprises at year-end. Among the self-employed, concerns persist that a higher contribution effort will grant access to social protections more in line with those available to wage earners, a topic frequently debated in policy circles.
“I see it as a logical progression; it was inevitable that payments would increase. You’ve witnessed this with many freelancers who relied on the minimum quota for years and faced consequences when retirement neared,” explained Jordi Del Cacho, a 54-year-old pharmacist who is evaluating the numbers as part of planning retirement. So far, eight out of ten have been quoted at the minimum base. Some because income is modest, others because they prioritize personal cash flow over state provisions. Unlike wage earners, there had been no formal contributions from the self-employed in the past, which adds tension to the transition.
“Relax, the self-employed should continue to bid as they have so far and adjust quotas in the coming months. But it’s a mindset shift, and workers will need to monitor their accounts to determine whether changes are needed,” stated Elizabeth Bach, president of Pimec Autonoms. The reform aims to align net income measures with the minimum wage, tracking 15 components of income after expenses, and setting a range from 230 euros to 590 euros for contributions. Those who already pay a fixed price will keep their arrangements until they mature, while new entrants face the revised structure. For many, payments are 80 euros monthly unless net earnings exceed the interprofessional minimum salary. Official calculations project that about two out of three self-employed people will pay the same or less, with roughly one-third paying more. Del Cacho’s pharmacy in central Terrassa, which has a 26-year history, represents one of those cases where voluntary contributions above the minimum base may have softened the impact of the change.
“The coming months will feel like a probationary period; I want to see how this unfolds,” Del Cacho noted. The pharmacist did not specify the exact fee he will pay starting January 1, but he plans to take advantage of the temporary government allowance to overprice and create a buffer for a dignified pension in the future. He wants to stay calm and avoid financial stress. It is not surprising that self-employed pensions run around 40 percent lower than those of workers, a disparity often cited in policy debates.
The reform is expected to benefit the self-employed with the lowest incomes and those for whom a large share of earnings comes from a modest base. Maria Jose Dominguez, an acupuncturist and head of Societat d’Acupuntors de Catalunya, exemplifies this group. “Now I pay 290 euros, with 230 euros in January under the minimum plan for new participants,” she explained. At 58, she also serves as an employee and leads a collective where much of her day is spent in self-employed activity, resulting in a lower overall income. She believes new rules will help people starting a business, especially in the uncertain economic climate, and she values the ability to adjust quotas during the year in up to six windows. Still, she acknowledges the added paperwork and the need for those who cannot afford a dedicated administrator to stay on top of numbers to avoid end-of-year surprises.
Initial fears that Escrivá’s reform would disproportionately burden high- and low-income earners appeared to ease after the rule was aligned with the positions of key associations. Yet some worry remains that the system could still feel punitive for certain groups who see little in return for higher payments. “It’s important to understand that not every payment translates directly into benefits; some portions fund pensions, others support cessation of activity or temporary disability,” noted a spokesperson for a major labor federation. “Access to benefits must be real, and the mechanics still aren’t crystal clear to all,” added Bach, highlighting the ongoing need for clarity as the transition progresses.