Next year brings important news in social contributions, both for the self-employed and for employees
Next year brings important developments in social contributions, both for the self-employed and for employees. On the one hand, self-employed workers will begin to contribute based on income and, on the other, wages will suffer from the entry into force of the Intergenerational Equity Mechanism (MEI), to which the highest incomes will have to add the increase in their pension base. quotation.
Changes in the contributions of employees
The State Budget project for 2023 proposes an 8.6% increase in the maximum contributions for next year, which would go from 4,139.40 euros per month now to 4,495.38. The measure will affect employees (and their companies) who earn more than 50,000 euros gross per year.
To this must be added the entry into force of the Intergenerational Equity Mechanism (MEI), which will be applied between 2023 and 2032 in the payroll of all employees. Its objective is to raise close to 50,000 euros in those ten years to reinforce the pension system in view of the proximity of the retirement of the ‘baby boomers’ (the largest generation born between the end of the fifties and the end of the seventies) and face with guarantees the payment of pensions between 2032 and 2050. To achieve this, over the next ten years social security contributions will increase by 0.6%. The increase will be applied in the concept of common contingencies, for which companies currently pay 23.6% and the worker 4.7%. So, from 2023, companies will pay 24.1% and their employees 4.8%.
Changes in self-employed contributions
As of January, the self-employed will no longer be able to choose their contribution base and will go on to contribute in tranches according to their net returns in annual computation unless they pay more than what would correspond to them with the new system right now. In this case, they can choose between keeping their current contribution or adjusting it to income to pay less.
Next year (for 2024 and 2025 other sections have been agreed) the fees will range from 230 euros paid by those who declare net income of up to 670 euros per month to 500 of those who exceed 6,000. Here you can see the detailed table.
To determine their net income, the self-employed (who are natural persons) must first subtract the deductible expenses from their income. Then, to the result of this first operation, they must add the total of the RETA quotas of the last year. Next, 7% (for generic expenses) is deducted from the result of that operation. Finally, it is divided by twelve. This final result is the one that must be consulted in the table to see what monthly price it corresponds to.
Once the calendar year ends, the General Treasury of Social Security and the Treasury will cross-reference the data on the expected returns and those finally obtained to determine how much we should have actually contributed. If we have contributed more, the difference will be returned to us before May 31 of the following year. They will do it ex officio, without having to request it. If, on the other hand, we have earned more than expected and, therefore, we have contributed less than we should have, we will be informed of the amount that we will have to pay to settle the difference before the end of the month following the one in which we were report.