we want to equate them to employed workers and they are not

The freelancers they cry to heaven. The Government has put on the table a new plan to pay according to their income. This would make dOne out of three freelancers pay less than what they pay now, according to the Minister of Social Security, José Luis Escrivá. But the group has already raised its voice in the face of what it considers a real rise in fees.

The difference with the current system, the RETA, is that now the self-employed choose what their contribution base will be and they pay according to it; Escriva’s proposal would force them to pay according to their income, for which it proposes 13 sections. But of course, another of the problems that the self-employed associations have already pointed out is that the majority do not have a fixed income, in this way, Do they have to change sections every quarter?

There are many questions and reservations that this new plan, which would come into operation in 2023, has risen, but, most importantly, it affects the pockets of the self-employed very directly. Starting in 2023, there will be 13 quotation tranches from the minimum income of 600 euros to more than 4,050 euros per month.

This implies that those who enter up to 600 euros will have to pay a fee of 184 euros, which represents 30.6% of their income, which is the contribution base that already exists today. For their part, those who enter the most will have to pay 1,267 euros per month, 31.28% of income, provided they earn 4,050 euros per month. But, what happens for those who enter more and less than those marked limits? There will therefore be an obvious inequality.

But, beyond that, the objective of this reform is very clear: equalize the contribution of the self-employed with that of employed workers, who currently pay more contribution. But the problem is that the reform is “that everything changes so that nothing changes”, because the fact that they pay more will not give them more rights.

The highest paying freelancers in Europe

Although according to Escrivá now 85% of the self-employed contribute for the minimum base, this supposes more than what they pay our european neighbors, something that the group in Spain has already complained about many times. Also, with less social protection.

If we look at FranceFor example, each freelancer pays according to their profession. And the first year, the fee is free. In Spain there is only a flat rate of 50 euros for the first six months of activity. In France, for its part, the self-employed have health care, retirement, temporary disability or widow’s and disability pensions. Here? No.

But there is more difference if we look at United Kingdom, where there is a fixed fee that goes from 13 euros to 58, depending on income. Fixed fee, gentlemen. The comparison is odious with the reform that the Government wants.

In Portugal they also win, they do not have to pay VAT and there is no fixed fee, they pay 25% of their annual income. In Holland the fee for all is 50 euros, more than 100 euros for health coverage.

What we see? That in Spain, although there is a reform, the situation for the self-employed will continue to be worse than in the rest of Europe, something that draws attention when the Executive wants to promote entrepreneurship and attract Startups to our land.

The problem: wanting to equate them to wage earners

The objective of this reform is clear: to equate the contribution of the self-employed to that of employees. Something that it is unfair if you compare the situation of one and the other. In the first place, because the contribution of employees is paid by the company that hires them, they only pay 7%. And, secondly, because the rights that some have and others have nothing to do with it.

Severance pay, sick leave, maternity/paternity leave, one month of paid vacation, etc. Freelancers can’t enjoy all that because they are the ones who have to carry out their business, which implies great sacrifices and a lack of social protection that no one has put a stop to yet.

It would therefore be fair to equate their contribution to that of wage earners if they were given the same rights, but this is not the case. As estimated by the Association of Autonomous Workers (ATA), the Government wants to achieve an additional collection of 2,000 million euros each year until 2031 with this reform of the contributions, in order to cover the objectives agreed with Europe.

But this is not going to fix the situation that the Spanish self-employed are experiencing nor does it guarantee them a better retirement, since the future of the pension system is very compromised. Therefore, the only thing that will imply is that the self-employed have to pay more. For nothing.


Source: El Blog Salmón by www.elblogsalmon.com.

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