Congress finalizes a law that will benefit almost 100,000 self-employed workers
The Lower House will approve next Thursday the rule, which will allow those who have at least one to collect the 100% of the pension.n employee
Before the end of July, self-employed workers will be able to benefit from around twenty specific measures included in the new Law on Urgent Self-Employment Reforms, after obtaining the support of the majority of votes in Congress. Thus, after more than six months of preparation and amendments, the debate and approval will take place next Thursday, and will subsequently be sent to the Senate for processing.
The main novelty, the compatibility of the 100% of the pension with work
The great novelty is that self-employed workers who have at least one employee under their care and have reached the legal retirement age will be able to make work compatible with collecting the 100% pension. Since 2013, it was possible to work and collect this benefit, but only 50%, a measure to which 29,000 self-employed workers have since taken advantage.
Summary of news
Extension of the flat rate of 50 euros from six months to one year
In addition, it may be resumed with a flat rate after two years of having interrupted the activity. Before you had to wait five years.
Contribution basis
They may change their contribution base up to four times a year to better adapt it to income.
100% pension
Self-employed employers of retirement age will be able to combine collecting the 100% pension with self-employment, while until now they could only enjoy the 50% pension.
Social protection
Flat rate for women who return to work after maternity and exemption from the 100% of the self-employed quota for twelve months for caring for minors or dependents.
Accident rate
Recognition of the accident 'in itinere' for the self-employed.
Training
Right to training adapted to the real needs of the self-employed to improve their business consolidation and competitiveness.
Disability
Improving the conditions for entrepreneurship for people with disabilities and facilitating the hiring of disabled children of the self-employed.
Ups and downs
Three registrations and three cancellations are allowed per year and the self-employed only pay for the days they have worked.
Another important right that this group acquires with the new rule is that they will be able to benefit from subsidies to take training courses. To do this, they will have to pay a Social Security contribution fee, which will be set annually in the General State Budget Law. Also in the PGE, the minimum contribution base for corporate self-employed workers (those who have at least ten employees) will be determined each year and will therefore no longer be linked to the minimum base of the general regime. In addition, they will be able to change their contribution base up to four times a year - compared to the current two times - to adapt it to their income and their Social Security surcharges will be reduced by half (from 20% to 10%) in the first month. in case of paying the fee late.
Another issue that has been settled is that the most representative organizations of self-employed workers will be considered of "public utility" and a period of one year is set for their entry into the Economic and Social Council (CES), as well as another twelve months to constitute the Self-Employed Council, measures that join others that had already been closed, such as extending the flat rate of 50 euros of Social Security contributions from six months to one year.
Living expenses and deductibles when working at home, still up in the air
What still remains in the air are two amendments related to the possible expenses that these workers can deduct for the exercise of their activity. Thus, ERC has shown its opposition to the self-employed deducting twelve euros a day for maintenance, as intended, as long as they can prove that they are drinks made in cafes or restaurants and on working days. Likewise, it has not yet been finalized that those who work from home can deduct the 20% from electricity, water, electricity and telephone expenses.
Social protection
Other measures incorporated in the agreement reached in Congress increase the social protection of the self-employed, extending the 100% bonuses of the contribution base for workers during maternity, paternity, adoption, foster care and risk leave during pregnancy or breastfeeding, without the need to be replaced by another employee.
Likewise, this bonus will be compatible with others applicable to contracts with unemployed people who replace self-employed workers during these rest periods.
Rates for women after motherhood
For women who have ceased their activity and return after maternity leave, adoption, custody, foster care or guardianship, the contribution rate will be 50 euros per month during the first year, or a bonus from 80% on the fee for common contingencies. in the event that they have other contribution bases. Likewise, the age of the minor whose care gives the right to bonuses is raised from 7 to 12 years.
Registration of former self-employed
Likewise, in the event that a former self-employed person registers again, they will be able to benefit from these reductions in contributions after two years - previously it was set at five years -, although for those who have already enjoyed bonuses a period of three years.
The groups have agreed to expand the coverage of professional contingencies for accidents 'in itinere'. The figure of the collaborating family member is also reinforced, the bonuses on Social Security contributions for the hiring of family members by the self-employed are expanded, and the degree of disability of the children of a self-employed person over 30 years of age is reduced for access. of aid, with incentives so that they can be hired as employed workers.
The sector praises the rule, but demands new reforms
The president of the Federation of Self-Employed Workers (ATA), Lorenzo Amor, hopes that the new rule will be approved "unanimously", since he considers it "a good law" for everyone. «It will improve social protection, the conditions to start and restart, it will eliminate obstacles and facilitate the activity. In short, it is a law that gives a voice to the self-employed. ATA will continue to ask Congress for even more measures to make their lives easier. "The next challenge," according to Amor, is to study part-time contribution formulas and how much and how self-employed workers whose income does not reach the minimum wage contribute. The general secretary of the Union of Associations of Self-Employed Workers and Entrepreneurs (UATAE), María José Landaburu, believes that the law should only be a preamble to a structural reform of the RETA. Landaburu believes that the measures of the new law are "positive", although "very short-range."