Self-employed worker, What fee must choose?

Give of registration as a self-employed worker entails the monthly payment of a fee, that in many cases is an economic load to be taken into account at the start of the activity, when the liquidity is very limited and investments in the business are high.

When initiating an activity on a self-employed basis, the Act demands to give of registration in inland revenue and in the Social Security Institute, when is practiced of common form, staff and direct an economic activity to lucrative title. In inland revenue taxes are regulated on a personal level and professional and, in the Social Security Institute, financial assistance is accessed and welfare.

In the case of financial assistance, its amount varies according to the picked monthly fee. For this reason, is very significant to know the existing relationship between this and the financial assistance that will receive every self-employed worker in need personal situations.

 How the fee is calculated to the Social Security Institute?

The fee to be paid monthly chooses it every self-employed worker with the contribution basis, that it has to select between a minimum one and a maximum, and that every year is updated in the General Budgets of the State.

In 2022

• Maximum contribution base 2022 139.40 euros / month
• Minimum contribution base 2022 960.60 euros / month

The fee to be paid is calculated applying a% to choice of the self-employed worker, that in 2022 is of 30.6%.

Therefore, minimum and maximum fees, calculated starting from previous bases are:

• Minimum fee 960.6 € * 30.6% = 294 €
• Maximum fee 4,139.4 * 30.6% = 1,266.7 €

 The vast majority of self-employed workers, more than 80%, choose to pay the minimum one, 294 €. But, when doing, also limit its financial assistance' charge to the minimum one.

To what provisions is accessed with the self-employed workers' contribution?

The fee serves for the sustainability of the welfare state: health, education, etc, and, also, gives the access to different provisions such as the retirement pension, temporary disability or permanent, maternity or paternity and cessation of activity.

Temporary disability

Provision that is received in the event of cancellation, that it can be caused by work cause, Occupational Contingency, or out of the work, Non Work-related injury or disease.

The rating of the cancellation as a Professional or Common, although is spread for the same practitioner of elementary school, is significant because it involves a different provision

• Occupational contingency (professional work-related injury or illness)
  Is started receivable from the next day of the cancellation
  75% of the contribution basis
  Is been paid 960.6 € * 75% / 30 = 24 € every day that lasts the cancellation
• Non work-related injury or disease (accident out of the work or non work illness)
  Of the 4th one to the 20th day on sick leave
  60% of the contribution basis
  Is been paid 960.6 € * 60% / 30 = 19 € every day on sick leave
  Starting from the 21st day on sick leave
  75% of the contribution basis Is been paid = 960.6 € * 75% / 30 = 24 € day

Permanent disability

When, as a result of an accident the self-employed worker has anatomical or functional consequences serious that they can be certain and valued objectively, that decrease or cancel its work skills, will have right to a provision for permanent disability.

Retirement

Be registered and paying contributions is significant, also, for the calculation of the retirement pension. The chosen contribution basis is the base of calculation of the retirement that will receive the self-employed worker. For this reason, to choose the minimum fee is suitable at the start of the business, but once the liquidity and investments do not shock so much on the day to day, it is advisable to rethink the contribution basis choosing one higher that will guarantee a better retirement pension.

Maternity/paternity

The financial assistance that is received as a self-employed worker is of 100% of the benefits base, result of dividing the sum of contribution bases during six months immediately prior to the cancellation between 180. This benefits base, as a general rule, is the set one for the provision for temporary disability common contingencies and that takeover as a reference the date of the break's beginning.

Therefore, if the self-employed worker is going to plan its maternity leave in good time, suits to consider the possibility of paying contributions more in the last year or past months in order to be able to increase the amount of the provision during the maternity leave. During the leave period for maternity, the payment of the fee is not assumed.

In the case of the parental leave for self-employed workers involves a grant of 100% of the benefits base of contribution. For this reason it depends directly of the contribution basis that the self-employed worker has chosen and you can request complete or partial.

Cessation of activity

The benefits base of the financial assistance for cessation of activity will be the average of the contribution bases through which has been paid contributions during 12 continuing months and immediately prior to the legal situation of cessation.

The amount of the provision will be determined applying to the benefits base 70%.