How the quota of freelancers has evolved in the last decade

Within the final ten years, the share of freelancers has skilled fairly a big development. Since 2012, the self-employed who contribute by the minimal base have seen their quota rise 15%, virtually € 500 extra per 12 months.

Entrepreneurship in Spain is just not straightforward. Added to the bureaucratic procedures, the issue find shoppers and the lengthy working hours is among the greatest freelance quotas of all of the nations of the European Union, which additionally doesn’t take note of the employee’s revenue.

The truth is, within the final ten years, the hole between the associated fee borne by the self-employed for paying their social insurance coverage in Spain in comparison with different neighboring nations has solely elevated. The completely different rules on labor issues and the safety of the self-employed employee have induced a rise within the quota of freelancers as much as virtually 300 euros in the present day, with a rise of near € 500 per 12 months in simply ten years.

Evolution of the quota of freelancers since 2012

The minimal charge that each one freelancers need to pay has skilled nice development within the final 10 years. Thus, whereas in 2012, the charge was € 253.35 per 30 days for a minimal contribution base to the Particular Scheme for Self-Employed Staff (RETA) of € 850.20, in 2021 this charge amounted to € 288.98 per 30 days .

That’s, in ten years, the charge has elevated € 35.63 per 30 days, or what’s the identical € 427.56 per 12 months. This represents a share improve of 15%. The evolution throughout this era has been as follows:

Evolution of the contribution base of the self-employedEvolution of the contribution base of the self-employed

Enhance within the contribution bases and the contribution charge

The charge has gone up for 2 causes. The most typical is the rise within the contribution bases, particularly the minimal, authorized within the successive Normal State Budgets every year.

However, as well as, the second transitory provision of the Royal Decree-Law 28/2018, of December 28, for the revaluation of public pensions and different pressing measures in social, labor and employment issues, raised the contribution charges for self-employed staff to incorporate the contribution for skilled contingencies and the cessation of exercise as obligatory protection.

This improve within the quota has occurred between the years 2020 and 2021, rising the contribution charge to 30.6% from the 29.80% in pressure till 2019. After all, the 2020 rise was postponed till October of that 12 months, at though its entry into pressure was scheduled for January 1.

On this graph you may see what the slope of the climb has been:

Evolution of the contribution of the self-employedEvolution of the contribution of the self-employed

The consideration: extra and higher social protection

The rise within the quota of self-employed has been extra of a headache for a lot of staff who had been already with water as much as their necks. Nevertheless, this contribution has a direct consideration for the employee: extra and higher social protection.

The contribution base is immediately associated to the quantity of advantages obtained. That is the case with frequent contingencies, corresponding to maternity or paternity go away, momentary incapacity and, in fact, the retirement you receive as a self-employed person. The upper the minimal bases, the larger the protection can even be.

The pension of the self-employed in 2021 is 420 euros decrease than that of salaried workers

However it’s that, as well as, the final reform added two necessary protection: the cessation of exercise (unemployment of the self-employed) {and professional} contingencies (accidents at work and occupational illnesses). From 2019, all of the self-employed might be obliged to contribute for them (earlier than they had been optionally available), receiving the corresponding consideration if vital.

The upcoming reform of the RETA, which can introduce the citation for actual revenue, will considerably modify this evolution, as the self-employed will start to quote according to their level of benefits. But it surely stays to be seen whether it is lastly utilized and below what circumstances. In the meanwhile, staff will proceed to need to endure successive will increase in self-employed quotas, no less than so long as the present standards are adopted.

* Authentic article printed by Diego Lorenzana and Business Insider