New deal for social security for the self-employed is one step closer

The negotiations for Social Security contributions of the self-employed have entered their final phase, after the Government yielded to the pressure from the sector's representatives and made a new proposal to them today, with lower amounts than previously put forward, especially for those who earn the least.

The objective of the Government is to approve the reform as soon as possible, and then carry it out in stages until it is fully implemented in 2025, with the lowest contribution, after the initial bonuses for becoming self-employed, of 230 euros per month, as follows:

- Those who earn less than 670 euros per month, will pay 230 euros social security, which is 64 euros per month less than what they pay at the moment.

- Those who earn between 670 and 900 euros per month, will pay 250 euros social security, which represents an annual saving of 527 euros.

- Those who earn between 900 and 1,125 euros per month, will pay 270 euros social security, which is 24 euros per month less than what they pay at the moment.

- Those who earn between 1,125 and 1,300 euros per month, will also pay 270 euros per month, with an annual saving of 47 euros compared to current contributions.

- Those who earn between 1,300 euros and 1,700 will pay 294 euros, the same as they pay now.

From this amount, as planned, the contributions will increase in a ‘sliding scale’ until in the upper range of earners between 4,050 and 6,000 euros per month, a fee of 530 euros per month will apply, and those who earn more than 6,000 euros per month will pay 590 euros social security every month.

Now the representatives of the self-employed are waiting to find out all the details of the entire text before an agreement can be reached, but the payments for the lowest earners were the main stumbling block, which it looks as though have been overcome.