The contribution base for a self-employed person is determined on the basis of your net monthly income, i.e. the result of subtracting income minus deductible expenses (not including social security contributions). This value defines how much you will pay each month to Social Security and what level of benefits you will have in the future.
- When must the contribution base and quota be updated?
Once you have finished your first year as self-employed and once your net monthly income has been calculated, if this is higher than the Minimum Interprofessional Wage (SMI), the change must be made.
⚠️If the change is requested while you are still entitled to the flat rate, the change will not be made.
- Flat rate
If you are enjoying the flat rate and want to change your contribution base, you must first renounce the flat rate, whether you are in the first year or in the second year of the extension. Once you have renounced the flat rate, you will start paying the corresponding contribution according to your new base.
If you do not exceed the SMI, you can maintain your minimum base or, if you meet the requirements, apply for an extension of the flat rate.
- When are the changes applied?
Changes are applied as follows depending on when the request is made:
- March fee if the change is made between 1 January and 28 February
- May fee if the change is made between 1 March and 30 April
- July fee if the change is made between 1 May and 30 June
- September fee if the change is made between 1 July and 31 August
- November fee if the change is made between 1 September and 31 October
- January fee for the following year if the change is made between 1 November and 31 December.
- How Xolo can help
If you'd rather not handle this yourself, add the "Change of Contribution Base in Social Security" service from the Additional Services section of your Xolo account. How it works:
- You choose the base. Tell us the contribution base you want, based on your expected net monthly income.
👉🏻 Not sure which one fits? Use our freelancer quota calculator. - We file it. Your accountant submits the request to Social Security (TGSS) on your behalf, within the applicable filing window.
Keep in mind: tracking your net income and requesting a change when your base no longer matches it stays your responsibility. Xolo files the base you select and doesn't monitor this for you automatically.
If you have any questions, you can contact us at ayuda@xolo.io.