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The employee earns 67% more


the existence of the Two contribution schemes The differential has created a historical distortion that has become palpable when it comes to pension collection. We are referring to the gap that has always existed in Spain between the amount of benefits the self-employed receive and the amount of salaried workers. The result is known: Workers On behalf of others charge a 67% more than self-employed With the most recent official figures available from January 2023. Although they are employers, in many cases they have workers under their responsibility—and they are 20% of the more than three million registered with Social Security—they generally receive less income from the state.

The main reason for this difference is that the self-employed can be awarded to Determine the level of contributions To Social Security, which ultimately determines the level of pension. An option, not in vain, that the government abolishes by reforming the new system of contributions based on the real income of the self-employed.

If the three million self-employed have so far determined their contribution base regardless of what level of net income they have recorded, since January of this year, each of the self-employed has registered for challenge You must plug in your expected Social Security income, which will place you in one of fifteen divisions provided based on performance.

Regarding retirement benefits, the main problem with the new system is that it provides for reductions in the monthly wage to be paid to two out of three workers, more than two million workers. for all of them It will reduce your monthly effort Contribute to social security while also at the same time Less right will be born for these retirement benefits.

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The gap is 20% smaller

However, in the last fifteen years it can be seen how the self-employed have become aware of the importance of contributions to the public pension scheme. At least, this is the picture that emerges from the evolution of the gap between the pension received by the self-employed and the employee. As of January 2023, the gap is 67% more for employees than for the self-employed. Specifically, the average amount of retirement remuneration was reached from the public system 1,527 euros per month on average, while the self-employed system remained flat 910 euros. In other words, an employee currently earns 617 euros per month on average, which is 8,638 euros more annually.


The evolution of the difference between

Employee pension and self-employed

in percentage. Fourteen payments per year

fountain: Social security / ABC

development

the difference between

pension

paid

and self-employed

in percentage.

Fourteen payments per year

fountain: Social security / ABC

In the past 15 years, it has not been in vain, the gap which is currently 67% has been reduced since 83% has been registered in January 2008in the run-up to the Great Financial Recession. Specifically, the gap has been reduced by 20% in the past 15 years – which is the difference between both percentages. So, fifteen years ago, the self-employed person received an average pension of 551 euros while the salaried was paid 1010 euros per month.

Since then, as a result of various revaluations implemented by different governments, the average pension is 65% higher for the self-employed, while salaried workers earn 51% more. This is the development that allowed the gap to nearly close The lowest level of the historical series Along with last December, when it was 67.7% (in January 2023 it was exactly 67.8%).

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Crisis blow to prices

In general, the observation exercise reveals a Deviation point On the evolution of the pension difference between the employed and the self-employed. It’s 2012. And it’s been exponential. If in December 2011 the gap was 82.3%, in January 2012 it was 72.3%. The key is in the step back that the average public system pension took that month: in that month it rose from 1144 euros on average to 1101 euros, which strongly pushed down the current gap.

The explanation lies precisely in the jobs lost in the years of the Great Recession. Spain had 1.1 million fewer affiliates in 2012 than it did in 2008. The impact of these Expulsion from the labor market This decline can be seen in the average pension, which is furthermore affected by the higher volume of workers whose pension calculation years were affected during that period between leaving the labor market and receiving general retirement benefits. In many cases, these dismissals have affected workers who are close to retirement age and, therefore, without the possibility of responding to a reduction in contributions.

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