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The Spanish government is preparing to increase Social Security contributions for self-employed workers by between €11 and €206 per month starting next year. The Ministry of Social Security presented a draft proposal this Monday outlining a new scale of 15 income-based contribution brackets. Percentage increases would range from 3.8% to 35%, depending on income level.

 

Higher contributions are expected to continue rising through 2027 and 2028, mirroring pension reforms introduced by former minister José Luis Escrivá. In 2027, payments could rise by as much as €412.50 monthly and by up to €619 in 2028.

 

For example, self-employed workers earning €670 or less would pay about €217.40 monthly in 2026. Those with incomes between €670 and €900 would face a monthly contribution of €234.85, while those earning between €900 and €1,166 would pay €271.24. Around 40% of self-employed people earn less than €1,166, meaning most see increases under €17 per month.

 

The upper brackets include contributions as high as €796 monthly for those earning more than €6,000. Only 15% of self-employed workers fall into the top three brackets, mostly business directors or company partners.

 

The draft also includes changes to the reduced flat-rate scheme that benefits new self-employed workers during their first two years. The €80 monthly contribution currently allowed would rise to €86.80 in 2026 and €100.80 by 2028 to maintain proportionality.

 

Additionally, improvements to unemployment benefits for the self-employed are proposed, aiming to speed up access and adapt support for sectors with variable or seasonal income, such as farming and fishing. New aid for caregivers of seriously ill children and expanded birth and childcare benefits are also planned.

 

This latest proposal has been met with criticism from ATA, the main association for self-employed workers affiliated with the CEOE employers’ group. Its president, Lorenzo Amor, called the increases a “real rip-off,” accusing the government of “living in a bubble” and ignoring the reality faced by self-employed workers. He urged political parties to “retract” should the proposal reach Parliament.

 

At this stage, the plan is not final and remains under discussion with trade unions and stakeholder groups. Any changes will require parliamentary approval, which has recently been difficult for the government to secure on labour matters.

 

The goal of the reform is to align the Social Security contributions of self-employed workers with their actual incomes by 2032, just as employees’ contributions reflect their earnings. This is intended to strengthen the sustainability of the pension system while ensuring fairer benefits for freelancers and entrepreneurs.

 

 

 

Image: Jakub Żerdzicki/Unsplash