Escrivá's new 'autonomo' social security contribution system raises the bar for the lowest earners

Spain's Minister for Social Security, José Luis Escrivá, has agreed to “substantially” modify his initial proposal to change the amount freelancers contribute to the social security system.

The new approach reformulates the concept of nett income on which contributions are calculated, reduces the number of contribution brackets from 13 to 11, and raises the minimum quota for those who earn less while reducing the contribution made by those with higher incomes.

Under Escrivá's previous proposal people earning less than 700 euros per month would pay 183.60 euros in social security contributions per month, while people earning between 900 euros and 1,125.90 euros per month would pay 293.94 per month. Under his revised plan, shared on 15 February, those earning less than 700 will pay 214.20 and those earning between 900 euros and 1,125.90 euros per month 264.55 in social contributions per month.

The flat rate is maintained for those who start a new freelance business but it is limited to those earning below the minimum wage and the contribution rises from 60 euros to 70 euros.

The Social Security agency says that under the new proposal two out of three freelancers would contribute the same or less than now and would benefit women - three out of four would pay the same or less - and young people with three out of four contributing the same or less.