Escrivá confirms that the new contribution scheme for the self-employed will be submitted to the Council of Ministers on July 26th

MADRID, July 20 (EUROPA PRESS) –

The Minister for Integration, Social Security and Migration, José Luis Escrivá, confirmed this Wednesday that the Royal Decree-Law introducing a new contribution system for the self-employed will be submitted to the Council of Ministers next Tuesday, July 26th.

Social Security signed the agreement this morning following the approval of the Association of Self-Employed Persons (ATA), the latest to be pronounced, after the Union of Freelancers and Self-Employed Persons (UPTA) and the Union of Associations of Self-employed Workers and Entrepreneurs (Uatae) .

However, the text is still awaiting the formal decision of the Spanish Confederation of Business Organizations (CEO), which due to time constraints could not deal with it this Wednesday in its Executive Committee and will do so tomorrow.

“We have already reached an agreement with the three self-employed associations, but the final decision by the CEOE is still pending and has been postponed to tomorrow due to an item on the agenda,” said Escrivá, when asked about this at the press conference. the submission of the July accession advance.

The minister has also indicated that it will be approved in the Council of Ministers as a Royal Decree-Law, an idea put forward by the Ministry to see “the rates of progress in the negotiations” and subsequently treated as law.

“My impression is that this is an agreement that will have broad support. It is supported by all social partners and the self-employed. It’s been a decades-long pursuit of the self-employed,” said Escrivá.

The Minister will appear at the extraordinary meeting of the Commission for Monitoring and Evaluation of the Toledo Pact Agreements at 12 noon this Thursday to explain the agreement.

QUOTA INSTALLATIONS AND PROTECTION FOR THE SELF-EMPLOYED

Social Security and the self-employed have agreed on a quota development calendar for 2023, 2024 and 2025, on which this will be reviewed again for the next three years up to the year 2032, as set out in the additional provisions of the text.

“The introduction of a new regime, as has happened in the past, requires a very gradual process, so that the self-employed and the administration can adapt themselves,” Escrivá explained, referring to this nine-year term.

The new contribution scheme for the self-employed will also allow the self-employed to change departments every two months from the 15 existing in the future model. The flexibility of the contribution “from a certain age” is also considered.

“This is very important to provide flexibility so that they can adjust their contribution levels and match their income throughout their working lives,” he added. According to social insurance estimates, every second self-employed person will have the opportunity to pay in at a lower rate.

For the Minister for Social Security, “the new contribution system will strengthen the protective effect of social security for the self-employed” as it will allow the self-employed to receive a “similar benefit” to employees during redundancy.

Although Escrivá has preferred to await its appearance before the Toledo Pact to detail the agreement, he has put forward as a “novelty” that the self-employed can deduct an additional 7% on hard-to-classify expenses. These amount to 3% for independent companies.

“The definition of net return has been much debated and refined. I think she has developed very well with general satisfaction. They are net returns, sometimes it is assumed that we are talking about income,” Escrivá clarified.