A new twist was added to the negotiations for the new contribution system that is based on self-employment’s real income. Next year’s ‘flat rate’ will increase for workers who start new activities. However, it won’t rise from 60 to 70 euro as was suggested at the social dialog table. Instead, it could go up to 80 euro. It will remain the same for the next three year: the amount will be the exact same for 2023-2024, and 2025. This is the most recent draft of the bill. However, negotiations are still ongoing and it is possible for the bill to be changed. This newspaper is the only one.
Jose Luis Escriva (Minister of Social Security), reversed his original idea and agreed to maintain this lower quota for new entrepreneurs, but not limit it to those earning less than the Minimum Interprofessional Salaary (SMI). In the final stages of negotiations, however, the Minister of Social Security Jose Luis Escriva found an ace in the bag: increasing its amount to 80 euro and reducing its protection. The minimum contribution base would drop from 960.6 euros to 800-euro. This does not only apply to new entrepreneurs but also to self employed women who have taken maternity leave. This is something that has been causing controversy among social agents.
This is one of many points of friction in reaching an agreement that was expected by June end at the latest. However, the opposition is resisting the deal and it won’t be approved by the Council of Ministers this Tuesday. Lorenzo Amor the president of ATA said that although negotiations are complete, there are still many issues to resolve. This organization, which includes CEOE and Cepyme, called off executive committees that were scheduled to vote on the proposal for a new scheme. The fee collection system collects fees between 245 and 500 euros per year for 2023. These fees are gradually increased over the next two years to reach a range of 230 to 500 euros. 590 euros in 2025. They will be paid 590 euros in 2025.
Borja Suarez (the new Secretary of State for Social Security), acknowledged Monday that they have reached a “decisive point” after months of “arduous negotiations” but was optimistic that the process will be concluded “satisfactorily within a very short period”. Eduardo Abad, president of UPTA, stated the same. He assured that they feel comfortable so long as the wages of those with the lowest incomes are lowered and the increase for those with the highest earnings is a planned rise.
The problem is not in the prices. This has changed since Minister Jose Luis Escriva’s latest improvements – which cut quotas for those who make the least and those that earn the most, and added a section for those who have net returns of more than 6,000 euros – created broad consensus. Now the problem is how to get beyond 2025 and define real income.
