Employment newsflash – February 2023

Legislative developments: Brief references to the main developments in the following provisions:

Law 31/2022, of 23 December, on the General State Budget for the year 2023.

In terms of relevant measures, we would highlight the following:

• Application of the "intergenerational equity mechanism": A contribution of 0.6 percentage points from 1 January 2023 applicable to the contribution base for common contingencies in all situations of registration or similar to registration in the social security system in which there is an obligation to pay contributions to cover the retirement pension (of which 0.5% will be paid by the employer and 0.1% by the Employee).

• The application of the system of reduction of contributions for professional contingencies is suspended for companies that have considerably reduced the number of accidents at work, for the contributions generated during the year 2023.

Increase of the legal interest rate to 3.25% and of the interest for late payment to 4.0625% until 31 December 2023.

Contribution to the Special Social Security Scheme for Self-Employed employees:

• The self-employed employees will begin to pay contributions according to their real income or earnings from January 2023, in a system of 5 brackets according to levels of "net earnings", all of this by means of two tables, a Reduced Table and a General Table with figures that will increase over a period of three years. In any case, the maximum contribution base will continue to apply, which in 2023 will be 4,495.50 euros per month.

• The previous "flat rate" regime of 60 Euros is replaced by a new regime established for the period 2023-2025, with a reduced quota (flat rate) of 80 Euros per month for the first 12 months of activity, extendable for a further 12 months if annual net income is expected to be lower than the minimum interprofessional wage.