Social Security Contributions Calculator Now Available For Spain’s Self-Employed
Spain News
Published: 07 December 2022 09:54 CET
Updated: 31 January 2023 09:54 CET
In July, the Spanish Government and labour unions reached an agreement on a new range of social security contribution thresholds.
The decision followed months of negotiations between the Ministry of Social Security, led by José Luis Escrivá, and the self-employed associations ATA, UPTA, and UATAE.
The new thresholds which are due to come into force between 2023 and 2025 will see the amount that most workers pay each month for their contributions change.
Those earning the least will pay less each month in contributions under the new scheme, however, those earning the most will see their payments rise over the next three years.
It is believed that with the new thresholds, half of all self-employed workers will pay less in contributions.
Those with a net income of less than 1,300 euros per month will pay less in contributions than they do now. Those earning between 1,300 and 1,700 euros will pay the same as they currently do, with those earning more than 1,700 euros paying more each year up until 2025. See table here of all the thresholds and quotas.
The previous minimum contribution base was set at 944.40 Euros, however, under the new system, this will change to 960.60 Euros. The maximum will also increase from 4,070.10 Euros to 4,139.40.
A worker's contributions go towards their state pension and other benefits including unemployment benefits, accidents at work, and occupational illness.
Self-employed workers have the choice of increasing their contribution base if they want to invest more into their pensions.
Contributions Calculator
In light of the forthcoming changes, the government has produced a handy contributions calculator that the self-employed can use to see exactly how much their monthly quota will be under the new system.
The amount paid each month is based on the worker's estimated net income for the year with a table of income and contribution bases also provided.
It is important to note that if your estimated contribution base is more than what you actually have earned at the end of the year, you may request a refund for the overpayment. If you have underpaid, you will need to make up the difference.
Source
https://www.surinenglish.com/spain/selfemployed-tool-calculate-20221205163523-nt.html
