The increase on minimum autonómo payments comes as the pending rise begins and inflation is added
The General State budgets for the next fiscal year include a rise in the minimum autonómo payments due from self-employed workers. This is combining the usual yearly inflation-based increase with any amounts that were delayed by the pandemic. The government has decided that amount to be 1.7% according to the “inflation forecast”, Israel Arroyo explained, in their role of Secretary of State for Social Security.
The minimum now moves to 294 euros a month for the general self-employed, a 96 euro increase over the year. The corporate self-employed can expect a higher increase of 18.7 euros a month, 225 euros more across the year.
Arroyo acknowledged that the increase bases “do not rise in real terms”, as it matches the expected rate of inflation for the following year. The smallest contributions for the self-employed are due to become even more mismatched to those of salaried workers, which are based on the minimum wage.
Autonómos will still be able to choose to pay in the minimum next year before the Government instigates its new sliding scale system. Under the new system, the self-employed will also pay according to how much they earn. The Executive is expected to approve these reform plans next year but will not start to roll them out until 2023.
If a person chooses to keep the amount paid for contribution at the minimum, any amount they receive back in the form of social benefits will also be the least. This is the position many found themselves in during the pandemic with a large number of people receiving 661 euros per month through the ‘unemployment aid’, which was 70% of their previous contributions. It also explains the discrepancy in the retirement funds of salaried and the self-employed, with the former being much higher.
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