A rise in self-employed contributions in 2022

New Year will start with a rise in self-employed contributions. The increases will be between 96 and 225 Euros, according to workers’ organisations.

In a context marked by economic uncertainty due to galloping inflation and rising production costs, the more than 130,000 self-employed workers in Malaga alone, out of a total of 3.2 million in Spain will be affected by the incrimination of contributions.

With the start of the new year, the self-employed will experience a series of changes that have been pending for more than a year and which will affect both their Social Security contributions and the contribution bases on which these payments are based. This appears in the draft of the General State Budget for 2022, which is still pending approval in Congress. In the section on social security contributions, in article 105, it is specified that the self-employed will have new Social Security contributions, as well as new minimum and maximum contribution bases and the amounts on which these contributions are applied.

The raise

The government plans to raise the self-employed contributions from 30.3% to 30.6%, thanks to the increase in the items for professional contingencies (from 1.1% to 1.3%) and for vocational training (from 0.8% to 0.9%). On the other hand, contributions for common contingencies and termination of activity remained unchanged, at 28.3% and 0.1%, respectively.

The minimum contribution base goes from 944.4 to 960.6 Euros and the maximum from 4,070.1 to 4,139.4 Euros.

The increase in contributions was contemplated before the coronavirus pandemic and was frozen due to the difficulties it generated. Subsequently, it was linked to the rise in the Minimum Interprofessional Wage (SMI) with Royal Decree-Law 2/2021 of 26 January, but after the increase in this index retroactively for September, the increase in contributions has finally been left for 2022.

As for the contribution bases, the Government will apply an increase in the minimum base, which will rise from 944.4 to 960.6 Euros per month. The maximum contribution base will rise from 4,070.1 to 4,139.4 Euros per month. All self-employed workers can choose any base between these amounts in the four base changes to which they are entitled each year.

Contributions based on age

However, there are certain conditions for the self-employed contribution bases when they reach a certain age. Those who are 47 years old at the start of 2022 and who in December 2021 have a contribution base of less than 2,077.8 Euros can only choose bases between the minimum base and 2,113.2 Euros per month, unless they exercise the option to do otherwise before 30 June, if they are the surviving spouse of the owner of the business who has died and is obliged to be registered in the Special Scheme for Self-Employed Workers (RETA).

Self-employed workers who are 48 years old at the start of 2022 must choose a contribution base of between 1,035.9 and 2,113.2 Euros per month. If they are the surviving spouse of the owner of the business who has died and forced them to register at the age of 45 or over, these bases will be between 960.6 and 2,113.2 Euros per month.

Self-employed workers who have contributed before the age of 50 for at least five years to any Social Security scheme and whose last contribution base is equal to or less than 2,077.8 euros will have a base of between 960.6 Euros and 2,113.2 Euros per month. On the other hand, if their last contribution base is higher than 2,077.8 Euros, they will be able to choose any base between 960.6 Euros and that base increased by 1.7%, with the limit of the maximum contribution base.

In Layman’s terms

The increase in quotas and contribution bases will force the self-employed to pay a little more each month to Social Security, something that has been echoed by the main self-employed organisations in recent weeks, such as ATA (Association of Self-Employed Workers), whose president, Lorenzo Amor, has put the economic impact of these measures on the pockets of the self-employed at between 96 and 225 Euros more per year.

The increase in the minimum base, for which 1.8 million self-employed workers pay contributions, would mean an increase of around 60 Euros for the self-employed and around 76 Euros per year for the corporate self-employed. For their part, the increase in Social Security contributions could translate into an increase of between 36 and 149 Euros per year for self-employed individuals and between 44 and 149 Euros for self-employed companies.

If you have any questions or are unsure about how this might affect you. Please contact your Gestor (accountant) for more information specific to your individual circumstances. All self-employed contributions will differ depending on your situation.

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