This tool is now available to calculate the new amount you have to pay
The new premium system for the self-employed will come into effect in 2023, which means that the associated quotas will change over the next three years. It consists of 15 sections that determine contribution bases and quotas based on net income. To facilitate this transition, Social Security has launched a simulator that will help you discover how much you will have to pay from next year.
It is important that you know the key dates of the new premium system, as different periods will open for you to communicate your chosen monthly premium basis based on the net return you expect to earn on average monthly during the year. The monthly contributions to Social Security that all those who register as self-employed must pay vary from 230 to 500 euros per month in 2023 and from 200 to 590 euros per month in 2025, always depending on the net return. Another novelty of the new system is that the self-employed can change their quota up to six times a year based on their net income forecast.
The Social Security Simulator allows you to make your calculations before the quotas change, so you know how much you have to pay. This tool is already available on the Importass portal. To find out the amount of your next installments, you must first indicate the bandwidth within which your net monthly income is estimated to lie in 2023. Later you can indicate a more precise amount of the expected income. Based on that figure, the simulator shows the minimum and maximum you have to pay. The reimbursement you choose determines the premium income and the amount of your future benefits.
Please also note that no deductions have been applied to the amount displayed by the simulator. Therefore, to calculate net income, all expenses incurred as a result of the activity that were necessary to obtain the income must be deducted from the income. In addition, a deduction for generic costs of 7% is applied to this result, which will amount to 3% in the case of a self-employed person.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
