The Government agrees to limit the reform of the self-employed to only three years

The Ministry of Social Security yesterday agreed to limit the reform of the self-employed regime to three years –as proposed by ATA, linked to the CEOE employers– and then, in 2025, to analyze the next steps.

Thomas Osborne
Thomas Osborne
18 May 2022 Wednesday 06:36
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The Government agrees to limit the reform of the self-employed to only three years

The Ministry of Social Security yesterday agreed to limit the reform of the self-employed regime to three years –as proposed by ATA, linked to the CEOE employers– and then, in 2025, to analyze the next steps. It is a radical change with respect to the initial proposal of the team of Minister José Luis Escrivá, which lasted nine years.

That is why some associations linked to the unions, such as UTAE, warn that limiting the first period to three years should not prevent the reform from being "halfway" and not being a "comprehensive" change, for which it is paid based on actual net income. Celia Ferrero, vice president of ATA, insisted yesterday that the proposal that is going to be negotiated in the next few days is for three years.

When the period is shortened, it is impossible for the changes to be very large, since this type of process usually takes time. For example, quota increases are high over a nine-year horizon, in the case of the last year of application compared to the first. If it is for three years, it is more modest.

Sources from the Ministry of Social Security said that “in the meeting it was verified that progress has been made since the negotiation began and meeting points have been evidenced. There is a shared will to continue working on an agreement”.

The initial proposal implied a sharp increase in fees for the self-employed who earn the most and a drop for those with less income. For this reason, the proposal convinced the associations linked to the unions, such as UPTA and UTAE, and was rejected by the associations in the orbit of the employers, such as ATA.

Escrivá's first proposal, which now seems completely discarded, included between 11 and 13 contribution brackets based on the real income of the self-employed, which would gradually unfold their effects over nine years, from 2023.


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