The vast majority of self-employed workers under 47 years of age decide to contribute at the minimum base for what they are paying this year, 266.84 € per month. With the exception of some bonuses, such as the flat rate.
To analyze this we have to understand what is the contribution base. This is like our remuneration for carrying out our work as self-employed workers, and for which the contribution that we have to pay to the Social Security is calculated. Each year, Social Security sets a minimum and a maximum. For this year, 893.10 euros is the minimum and 3,642.00 euros the maximum base for which we can contribute.
In case of incapacity due to illness or accident
What happens when we take sick leave and have to stop working. If you have paid the minimum contribution (893.10 ¤), you will receive 60% of the contribution for the first 20 days and 75% thereafter. That is to say, 535.86 euros during the first 20 days of sick leave, and then 669.83 euros. During the period you are on sick leave, you must continue to pay the monthly self-employed fee.
When the self-employed worker retires
The main drawback is retirement. This is calculated from the contribution base. That is, a self-employed person who has contributed for the minimum base, will receive about 610 euros per month. To avoid this, self-employed workers can increase their contribution base in the last years of their working life. It must be within the last 19 years of contributions. It should also be noted that, from the age of 48, the law limits the maximum contribution base for the self-employed, which stands at 1,964 euros.
Let’s see what options we have
The best thing would be to contribute to a high base from the beginning, to be covered for sickness and accident leave and for retirement, but this is not always possible so another system is to take out a private pension plan, real estate investments, etc. All this also has its pros and cons. The most economically advantageous option should be studied in each particular case.