We explain Order ESS/106/2017, of February 9, which develops the legal rules for contributions to Social Security, unemployment, protection for cessation of activity, Wage Guarantee Fund and professional training for the year 2017.
Due to the automatic extension of the 2016 General State Budget until the approval of the 2017 budget, the Government is taking a series of important measures to update the maximum and minimum contribution bases for this year, both for the general scheme and for the self-employed.
In general, the contribution bases, both the minimum and the maximum, will experience a significant increase above the 2016 CPI, which will result in an increase in Social Security revenue.
The most important measure is the increase in the minimum interprofessional wage.
Contribution bases in 2017 for workers under the general scheme
In recent years, minimum contribution bases had increased by 1%, but this year the national minimum wage has risen by 8%. Furthermore, maximum contribution bases have increased by 3%, thus raising both the lower and upper limits. This percentage only affects workers who earned less than €707.70 per month, which is the established minimum wage.
Furthermore, collective bargaining agreements that stipulate increases for different salary groups based on the increase in the professional minimum wage will be referenced to the 2016 minimum wage, given the exceptional increase this figure has undergone. Therefore, only workers who were earning below that threshold will be affected by this average. In other words, it will not result in a generalized salary increase for all workers and their corresponding social security contributions.
Contribution bases in 2017 for the self-employed
As for the self-employed, the maximum contribution base for Social Security will be updated for 2017 by 3% compared to 2016, reaching €3,751 per month. However, the majority of self-employed workers are currently contributing at the minimum base, which will see the largest increase.
For self-employed workers who pay the minimum contribution base, it will remain frozen at 893.10 euros until the publication of the 2017 General State Budget.
What is being updated is the maximum contribution, which is being increased, and the amount to be paid into Social Security will be €1,121.63 per month, €32.68 more than in 2016. This is a significantly lower amount proportionally. In any case, few self-employed workers opt for this contribution base, with more than 80% contributing at the minimum.
This also affects self-employed business owners, whose minimum contributions are linked to the increase in their salary. This base will be increased by 8%.
Change of bases for the self-employed
As always, if you intend to change your contribution base, the possibilities of choosing a new one will depend on the self-employed worker's age. For those under 47, there are no problems, but self-employed workers who are 47 years old on January 1st of this year, with a contribution base of less than €1,964.70 per month, will not be able to choose a base higher than this amount.
Similarly, those who are 50 years old and have contributed to any Social Security scheme for five years or more will have to contribute on a base between 893.1 euros and 1,964.70 euros per month if their last contribution base was equal to or less than 1,964.7 euros.
If you require our assistance to obtain more information or have any questions, please contact us via email at ambit@ambitassessor.com or at our offices.
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A graduate in Labor Relations from the Rovira i Virgili University of Tarragona, she began her professional career at the temporary employment agency Alta Gestión as head of recruitment, a position she later held at Marlex Gestió. She then joined Bufete Gatsa as head of the labor department. In June 2014, she joined Àmbit Assessor, SL to head the labor management department.
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