We are more than 3 million self-employed in Spain. Specifically, 3,149,040 members of the Special Regime for Self-Employed Workers (hereinafter, RETA). For a year now, there are already 38,444 more brave people, which is very positive, because we are characterised by being enterprising, and that is always a good thing.
Main disadvantages of self-employment
Today, we will look at three differences we have for salaried workers, which are classified in the General Regime, and of which we are not satisfied:
1. Dissociation between income and contributions
As a self-employed person, we may be lucky enough to earn, for example, €2,000 per month or, like the vast majority, less than €800 between expenses and other obligations associated with being self-employed. Either way, on the one hand, our income and, on the other hand, our social security contributions. (which in the 86% of cases, we are availing ourselves of the minimum contribution: €893.10 in 2016). In itself, this is already unfair, as it will mean that we will either pay more than we should or less, which ties in with the second disadvantage of the self-employed as opposed to the salaried worker.
2. Lower contributions mean lower benefits
Indeed, to quote for 999.27 euros, which is the average for the self-employed, compared to 1,703.71 euros for employees., The consequence of this is that all the benefits offered by the Social Security: retirement pension, temporary sick leave due to illness or accident, widow's and widower's pensions, orphan's pensions, unemployment, etc., will be a 40% lower. In this article we talked about the lower pension for the self-employed as opposed to the employed person.
This, of course, requires us to take out a series of insurance policies to complement our very basic benefits. in the event of any contingency. In the case of paying the minimum contribution (we have already said that this is the case for the 86% for the self-employed), let's look at some examples of these benefits:
- 526,93 € per month for taking temporary sick leave (from which should be deducted the cost of the self-employed contribution, which would still have to be paid: 267.04 €). In other words, a net of €259.89 per month.
- 98 per month for widow's/widower's pension. That is what our spouse would be left with per month, should any misfortune befall us (even if we were to receive €2,000 per month).
3. Increased bureaucratic obligations
As a self-employed person, we are like a mini-business. We have to control both our income and the expenses linked to our professional activity. This involves the the need, almost the obligation, to hire to a manager to handle everything related to the Administration and the Treasury, in general. Of course, with the cost that this entails at the end of the month.
Of course, we are not going to go into the issue of holidays or unemployment pension entitlements so as not to inflame the flames even more.
Improvements to be achieved
For these reasons, we are calling for better treatment of the self-employed who, as we all know, also generate wealth in our country. We would like to see more initiatives like the €50 flat rate.
Another logical change would be to link income to contributions, so that they are not penalised in terms of benefits (provided, of course, that the contributions payable are more reasonable).
From PIB Group Iberia, We are at your disposal to inform you about the Social Security benefits available to you, and to find the advice you need. Call us or write to us if you want to know more about the best insurance for the self-employed.
