Increase in the Social Security contribution bases, both for workers in the General Regime and for Self-Employed Companies (SL Administrators)

On December 21, and with immediate effect (as of January 2014), companies and self-employed corporations will see increased contribution bases to Social Security.

While waiting to see how the measures are implemented and what Social Security’s application is (which tends to reinterpret the laws), we inform you of the main changes the regulations provide.

The new law presents two crucial innovations:

1.- A large part of salary payments in the General Regime, which until now did not contribute to Social Security (incredibly social concepts such as daycare, payments in kind…), will now contribute and, therefore, the company will have to pay the corresponding 30% Social Security.

2.- The corporate self-employed (those who are self-employed by managing a company) will see their contribution base increased so that the Minimum monthly payment will go from the current €257 to €314.

If you need to know more, you can consult our Tax Advice service.