Do I have to register as self-employed if my income doesn't reach the minimum wage? The Supreme Court clarifies the situation for the self-employed and pensioners.

The debate on whether self-employed workers must register with the RETA (Special Regime for Self-Employed Workers) when their income does not exceed the Interprofessional Minimum Wage (SMI) has been resolved by the Supreme Court Judgment 941/2025, issued on July 10, 2025. The high court distinguishes between self-employed non-pensioners and retirement pensionersand establishes a clear criterion for each case.

 

Self-employed workers who are not pensioners: regularity matters more than the amount

For self-employed workers non-retired, Income level is not the only criterion Something to consider. The fact of earning less than the minimum wage does not in itself exclude the obligation to register with the RETAbecause what matters is whether the economic activity takes place on a regular basis.

The Supreme Court points out that habitual behavior depends not only on figures, but also on aspects such as... continuity of activity, organization of resources and the intention to obtain profitseven if they are modest. Therefore, Yes, there may be an obligation to register even if the income is low., if the activity has a stable character.

 

Pensioners: specific scheme with clear exemption

The ruling establishes a important exception for retirement pensionersIn your case, if the annual net income from self-employment does not exceed the minimum wage, There is no obligation to register with RETAnor to quote.

This applies even if the activity is continuous, as per article 213.4 of the General Social Security Law exempts from registration and social security contributions when these conditions are met. The Court confirms and clarifies that The minimum wage does act as an objective limit. in these cases.

 

The calculation is based on net income

Another point clarified by the ruling is that the minimum wage limit must be applied. on net incomeThat is, once the deductible expenses of the activityThis detail is crucial, as many workers may be misjudging their situation if they compare the minimum wage with their gross income.

 

Conclusion: clear criteria to avoid mistakes

This ruling provides legal security and establishes a precedent for thousands of workers and pensioners engaged in small-scale economic activities. The key points are:

• The self-employed non-pensioners they must value the habitualnot just the amount of income.
  
• The pensioners with annual net income below the minimum wage They are not required to register nor to pay into the RETA (Special Regime for Self-Employed Workers).
  
• The income calculation must be performed always in net terms.
  
  

Do you have questions about your status as a self-employed person or pensioner with economic activity?
Consult with our team to analyze your case and avoid penalties for improper registration or unnecessary contributions.