Government makes new proposal to the self-employed for Social Security contributions

The Ministry of Social Security presented a new proposal for self-employed workers yesterday (Tuesday), to reduce the amount of social paid by people that have an income between 900 and 1,500 euros, which represents the highest number of people in the sector. It also includes other requests from this group, including the modification of the concept of net income, and the possibility of deducting more expenses.

The Ministry has also raised the possibility of introducing improvements in the ordinary cessation of activity, and the creation of an extraordinary one, similar to the one introduced in the new labour reform for employed workers.

The Minister of Social Security, José Luis Escrivá, insists that it is a "comprehensive reform of the protection system for self-employed workers", and will introduce more flexibility.

However, the Association of Self-Employed Workers (ATA) insists that the Government's proposal is unrealistic because there is no actual data on the real income of the self-employed only what they have declared, which represents around one million people in the bracket they have suggested.

They said in reply to the proposal that the modifications continue to look just as unfair for the self-employed as now, and that they will continue to insist that over the next five years the minimum base of the self-employed be equated with that of salaried employees, in addition to lowering the contributions for those that do not reach the minimum wage.

ATA, the Spanish Confederation of Small and Medium Enterprises (Cepyme), and the Spanish Confederation of Business Organizations (CEOE) have rejected the Government's new proposal, but promise to "continue talking and negotiating".

The president of UPTA, Eduardo Abad, said that the Government's proposal for self-employed workers to contribute based on their real income is "insufficient", and stressed that the new system must make those with a higher net income make a higher payment so that those with lower incomes can pay less to Social Security.

They have proposed that self-employed workers with an income of up to 8,400 euros per year can save 960 euros per year in contributions; those who earn up to 10,800 euros per year can save 600 euros per year; and those who have an income up to 13,500 euros per year, can save 300 euros per year.

“Higher earners must make a greater contribution so that lower earners pay less. We are going to continue negotiating this week and the next because we want a fruitful agreement.”

The spokesman for the Union of Associations of Self-Employed Workers and Entrepreneurs (Uatae), Curro G. Corrales, has also pointed out that the new Social Security proposal "does not yet meet the needs of the self-employed."

He said: “The Government continues without talking about how the social protection of the group is going to be improved and, above all, we do not share the increase that is proposed in the minimum fee of 214 euros for those who earn less than 700 euros, or that it is lowered by almost 300 euros to those who earn the most.”

The one thing that all the organizations have agreed on is that they are still willing to negotiate, but that they are "far from an agreement."