Overview of the self-employed contributions reform and its rollout
The reform of self-employment contributions takes effect on January 1, 2023. The Ministry, led by José Luis Escrivá, reached an agreement with the main representative organizations last June, and the new quota system will be introduced gradually through 2025. The highest and lowest quotas will narrow with time, creating what is described as an accordion effect. Preliminary estimates from SGK suggest that two out of three self-employed individuals will pay the same or less than the current minimum wage level.
The new framework marks a cultural shift for self-employed workers. Up to now, they paid the wages they agreed, but from 2023 they will contribute based on net income after deducting eligible expenses. Currently, about 85% of self-employed workers affiliated with RETA, the Special Regime for Self-Employed, contribute to the minimum quota. In 2022 this amount equated to 294 euros. Under the new system, some self-employed workers will pay more monthly while others will pay less. This shift will also affect benefits and rights, since higher contributions correspond to higher support for cessation of activity or temporary disability for the self-employed.
How will rates change?
Under the reform, the contribution for the self-employed will depend on net income. At the start of activity, each self-employed person estimates the likely benefit and begins paying accordingly. For example, a net monthly income of 670 euros or less will pay the minimum in 2023, with 230 euros in 2024, 225 euros in 2025, and a stabilization at 200 euros thereafter. The minimum wage remains at 294 euros per month. On the opposite end, if benefits reach 6,000 euros or more per month, the payment cap applies, starting in 2023 at 500 euros, rising to 530 euros in 2024, and leveling at 590 euros later on.
Businesses can experience good and bad months, which affects self-employed income. The new system allows changes up to six times a year to adapt to income fluctuations. Quotas can be increased during profitable months and reduced in lean periods. At year-end, the Treasury is notified, and balances are settled through payments or refunds based on the last twelve months, reflecting timely dues or overdue status.
In the official State bulletin (BOE) a royal decree was issued this week alongside the regulatory changes. The BOE also introduces that any new self-employed person enrolling now must declare estimates of net economic returns during the first calendar year of activity. The government intends for the new contribution framework to take effect on January 1, 2023.
How much will the self-employed pay more or less?
Social Security estimates indicate that two out of three self-employed individuals will pay the same or less under the new contribution system. Those with lower incomes will see a reduced contribution burden, while higher earners will face increases, capped so they never pay more than a defined multiple of their benefits. There is a noticeable gap between middle tiers, particularly for those earning between 1,300 and 2,760 euros, where effects are more uneven. The accompanying table illustrates that a self-employed person who currently pays the minimum wage of 294 euros in a given month would see that amount reduced or adjusted under the new scheme.
The reform aims to be fairer than the current arrangement, though it does not promise perfectly equal quotas. For instance, a self-employed worker with a net income of 670 euros would be charged about 200 euros, roughly 29.8% of their benefits. Conversely, a self-employed person with an income of 6,000 euros per month would be asked to contribute around 590 euros, about 9.8% of their benefits.
What do associations think? Will there be a deal?
Representatives express cautious optimism. A UPTA president noted that millions of self-employed workers will save significantly, estimating reductions between 400 and 1,200 euros per year. The general secretary of Uatae highlighted that after intense negotiations, an agreement was reached that lowers quotas for the most vulnerable and strengthens protections during periods of shutdown. These positions reflect a broader consensus that the reform balances fairness with practical protections for self-employed workers.
Cited from the official BOE publication and accompanying regulatory materials. Further commentary from sector associations underscores the anticipated positive impact for many self-employed individuals, while acknowledging transitional challenges and the need for ongoing assessment. The reform is intended to align contributions with actual net income, improving equity within the RETA framework and simplifying the relationship between earnings and social protections.