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Spain Scales Back Self-Employed Contribution Plan, Freezes Low Incomes and Caps Rises at 1%–2.5%

La Moncloa intervened after a backlash, leaving a narrower offer to be settled before a 31 December decree.

Overview

  • Social Security now proposes to freeze quotas for autónomos below the SMI (about €1,166.70 a month) and raise the rest by €2.9 to €14.75 monthly in 2026.
  • Pedro Sánchez and María Jesús Montero brokered the reversal with Minister Elma Saiz after the initial €11–€206 monthly hikes lost support across Congress.
  • The PP will take its own package to Congress, including a 0% VAT franchise for those under €85,000 in annual income, while seeking votes from Junts and the PNV.
  • Reactions diverge as Sumar welcomes the U-turn, Podemos ties its support to cuts for lower earners, ATA rejects increases above inflation, and unions caution that the 2022 improvement pact is being diluted.
  • Talks with autónomo groups continue, with a decree due by 31 December 2025 or current contribution rates will roll over into 2026.