As we step into 2024, self-employed individuals, or “autónomos,” are experiencing adjustments in their contribution structure. These alterations come after a year of adapting to the new income-based contribution system introduced by Royal Decree-Law 13/2022, enacted on July 26, 2022, with defined income brackets until 2025.
Monthly Contributions for Autónomos Altered in 2024
The modifications to contributions apply to both the lower and higher brackets. The lower tier, previously set at €230 with a minimum contribution base of €751.83, now sees a slight reduction to €225 and a base contribution of €735.29. This means a decrease in payments along with a reduction in the contribution base.
Conversely, the higher-tier contributions rise from €500 to €530, with a base contribution climbing from €1,633.99 to €1,732.03. In this case, the base contribution increases.
Maximum Contribution Base Rises Irrespective of Earnings
Regardless of a self-employed individual’s net income, none can contribute beyond the maximum base, set at €4,720.5 monthly for 2023. This remains consistent irrespective of one’s earnings—there is a cap on contributions, even if income surpasses this threshold.
The minimum contribution base will persist until the announcement of the Minimum Interprofessional Salary (SMI) increase, remaining at €1,260.00 monthly.
The only contribution base to experience an increase is the maximum, rising from €4,495.5 to €4,720.5 monthly.
Intergenerational Equity Mechanism (MEI) to Increase Autónomos’ Contributions by 0.1%
Another change ushered in by 2024 is the return of the new MEI tax, slated to increase autónomos’ and their employees’ contributions by 0.1%.
The MEI was an unexpected gift from the government last year, designed to bolster the Social Security fund and ensure the sustainability of the pension system.
This tax applies to all private sector companies and workers in Spain. In 2023, autónomos’ contributions saw a 0.6% increase due to MEI. The progression continues in 2024, with a total anticipated increase of 1.2% by 2029.
Understanding these adjustments in autónomos’ contributions is essential for effective financial planning. Stay informed to navigate these changes and make decisions that align with your financial goals.