How to change the contribution base if you are self-employed?

Update Post: November 28, 2023 10:06 am

The contribution base is calculated based on the gross monthly remuneration received by a worker. This includes prorated extra pay (12 contribution bases per year are taken into account) and other concepts such as overtime or untaken vacations. However, per diems and other items such as transportation costs are not included.

Depending on this contribution base, the contributions on behalf of the company and on behalf of the worker that give the right to the benefits received from Social Security will be determined: unemployment, retirement or temporary disability. Thus, the larger the contribution base, the larger, for example, the retirement pension obtained at the time of retirement.

Up to six changes allowed in the contribution base

This affects both employed and self-employed workers. That is, to the self-employed. Specifically, this year a new system came into effect according to which self-employed workers must contribute based on their net income. To do this, they can update their contribution base up to six times a year, with effect on specific dates.

March 1, if the request is made between January 1 and February 28/29. May 1, if the request is made between March 1 and April 30. July 1, if the application is made between May 1 and June 30. September 1, if the application is made between July 1 and August 31. November 1, if the application is made between on September 1 and October 31. January 1 of the following year, if the request is made between November 1 and December 31.

Therefore, now starting in September the change requested in the previous period is applied and the new period to request the last change is also in force with effect on the fees to be paid in 2023. Specifically, it will be applied in the month of November . .

For those who are interested, the request to change base can be made through the Social Security General Treasury Portal or in the RED System if an authorized RED is available. Along with the request for a change of base, the expected monthly net returns must be declared.

How to calculate the net returns of the self-employed?

In this way, the monthly fee may vary depending on the variation in your annual net return forecast. For this calculation, each self-employed person must take into account “all the net income obtained from the different activities that he carries out as a self-employed worker, to which he will have to add the amount of the contributions paid”, as explained by Social Security itself. .

In addition, the Personal Income Tax (IRPF) must be foreseen. 90 days.

Based on the notified returns, the General State Budgets annually establish a general table and a reduced table of contribution bases divided into consecutive import tranches of monthly net returns. Each section will be assigned a minimum contribution base and a maximum contribution base for each month.

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September 24, 2023 2:52 am