As of 1 January 2023, and in accordance with Royal Decree Law 13/2022 of 26 July establishing a new contribution system for self-employed workers, all self-employed workers will pay contributions based on their income
Those who are contributing on the last day of 2022 will be allowed to continue to do so indefinitely
As of 1 January 2023, and in accordance with Royal Decree Law 13/2022 of 26 July establishing a new contribution system for self-employed workers, all self-employed workers will pay contributions based on their income. Depending on their net income, they will have to pay one amount of contribution or another.
We remind you that you have the opportunity to modify the contribution base of the Special Scheme for Self-Employed Workers (RETA) and the contribution to be paid, within the limits allowed according to age, until 30 September 2022. This modification will take effect from 1 October 2022.
From 1 January 2023, the new contribution system for the self-employed will start to be applied and if in December 2022 the self-employed person pays a higher contribution base than that which would correspond according to the brackets, they will be able to continue to do so if they so wish.
Those who are contributing on the last day of 2022 will be allowed to continue to do so indefinitely, although after the implementation of the new system of brackets, the net income declared by these self-employed workers in 2023, 2024, 2025 and thereafter will not entitle them to contribute at that higher base.
However, depending on the age of the self-employed on 1 January, the contribution base to be chosen until 30 September 2022 is limited. To this effect:
– If on 1 January 2022 you had not yet reached the age of 47, you may choose any contribution base within the minimum and maximum limits indicated.
– The same rule applies if you were 47 years old on that date and your contribution base in December 2021 was equal to or higher than 2,077.80 euros (or if you join the RETA after that date). If the above requirements are not met, you will not be able to choose a base higher than 2,113.20 euros per month. However, you may choose a higher base (up to the maximum of 4,139.40 euros) if you exercise your option before 30 June 2022 (with effect from 1 July 2022).
– Self-employed persons who were already 48 years old or older at the beginning of 2022 and who want to increase their base can only choose a base of between 1,035.90 and 2,113.20 euros.
In the sixth transitional provision of Royal Decree Law 13/2022, as the text states, “self-employed workers who on 31 December 2022 were paying contributions on a higher contribution base than that which would correspond to them on the basis of their income may maintain that contribution base, or one lower than it, even if their income determines the application of a lower contribution base than either of them”.
This provision tells us that the self-employed are NOT obliged to lower their contribution base if their net income is lower.
With the entry into force of this reform in 2023, the following scenarios could arise:
– If the self-employed person is paying contributions in 2022 at a higher base than that which would correspond to their net income. In this case, even if the base is higher than their income, they could continue to pay the same contribution as an exceptional measure and, in this way, not reduce the contributions they are making towards their retirement pension.
– In 2022, the self-employed would pay contributions at a lower base than the one that would correspond to their net income. Their base would go up and they would have to pay the contribution that corresponds to them according to the bracket set for their income. This will, in any case, lead to an improvement in your pension in the long term. For further information, please consult Labour counselling.
